Short Answer 
Miranda took out four Stafford loans totaling $22,000 at a 7.5% interest rate, repayable over ten years. After graduation, she made fixed monthly payments, ultimately resulting in a total repayment cost of $31,337.27. This knowledge is crucial for her financial planning while managing her student debt.
Step 1: Understand the Loan Basics
Miranda took out four separate Stafford loans, each with a principal amount of $5,500. These loans had an interest rate of 7.5%, which was compounded monthly, indicating the way interest is calculated on the principal. Each loan is expected to be paid off over a duration of ten years, highlighting the repayment term she needed to commit to after graduation.
Step 2: Recognize the Payment Structure
After graduating, Miranda began making fixed monthly payments for her loans. Since the loans were subsidized, she would not incur any interest charges while she was still in school. Once she started her payments, she had to maintain them consistently, ensuring she met the repayment schedule for all four loans simultaneously over ten years.
Step 3: Calculate Total Lifetime Costs
Over the entire repayment period, the total cost of paying off all four Stafford loans came to $31,337.27. This amount illustrates the cumulative financial obligation Miranda had as she cleared her loans after graduation. Understanding this total can help her budget effectively for other expenses while managing her debt.