How much will a student starting college this fall have to repay to cover student loans after graduating?
Assuming a 7% fixed rate, a fixed $10,000 per year (total tuition and fees, room and board, books), and repayment starting 6 months after graduation.
Monthly repayment per $10,000: about $435
Therefore, the monthly payment for an in-state student at the University of Iowa would be about $790
The payment for Luther College in Decorah, Iowa (private college in Iowa and my alma mater) would be about $1,875
Then I decided to depress myself a little bit more. I have a 3 1/2 year old daughter, who will be starting preschool this fall. If I assume the total cost increases 6% per year, her monthly payment (assuming she attends Luther) will be about $4,350.
Entire cost is covered by student loans.
Estimate for books is $1,000.
No other costs are included.