Complete the following problems in small groups. All problems assume a single dispersement at the beginning of each academic year.
1. For unsubsidized loans that accrue interest while you are attending college, is it better to pay the interest each month or wait until the end of college? Why?
2. What is the most money you could borrow subsidized by the government?
3. A student took out an unsubsidized Stafford loan of $4,000 for each year of college. Each year, the loan accrues interest monthly. This student chose not to pay interest along the way, and so when she graduated, she owed more than the original amount borrowed.