MATH 201 Quantitative Reasoning Student Loan Portfolio project

Introduction • This project is intended to help me repay my student loans after

Hypothesis • Once I graduate and I am on my path to my career,

Expected salary after Graduation • For an Administrative Assistant • $47, 209 per year

Budget Net Monthly income $ 2, 950. 50 Cell phone $ 200. 00 Food

Estimate of student loans • Total amount • $47, 215 • Stafford interest rate

10 year repayment plan • Monthly repayment amount $543. 35 • This amount made

Amount of interest paid # of years Payment amount Total interest 4 $1126. 25

Conclusion • My optimal Monthly payment would be $400 • It would be beneficial

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MATH 201 - Quantitative Reasoning Student Loan Portfolio project JENNIFER POSCH

Introduction • This project is intended to help me repay my student loans after I graduate. It will have ways of showing what I need to have done in order to start repaying and how I am going to balance my budget to make it happen.

Hypothesis • Once I graduate and I am on my path to my career, will I be able to pay back my loan faster than expected?

Expected salary after Graduation • For an Administrative Assistant • $47, 209 per year • $2, 950. 50 per month

Budget Net Monthly income $ 2, 950. 50 Cell phone $ 200. 00 Food $ 400. 00 Car insurance $ 180. 00 Cable and internet $ 200. 00 Rent $ 800. 00 Credit cards $ 50. 00 loan repayment $ 543. 35 Total Expense $ 2, 373. 35 Disposable income $ 557. 15 Expenses

Estimate of student loans • Total amount • $47, 215 • Stafford interest rate • 6. 8% • Monthly rate from award letter • $393

10 year repayment plan • Monthly repayment amount $543. 35 • This amount made my hypothetical salary after all my other bills and expenses, a lot lower. • It took a big chunk out of my disposable income. • Percentage of net monthly salary is the loan repayment = 18. 42% • It does seem like a manageable amount if that was my actual monthly salary • The only problem would be saving the money for the loan. If you get paid every other week or weekly you have to make sure you have that money in your account.

Amount of interest paid # of years Payment amount Total interest 4 $1126. 25 $6200. 52 6 $800. 44 $8971. 07 8 $639. 03 $11569. 46 10 $543. 35 $13997. 06

Conclusion • My optimal Monthly payment would be $400 • It would be beneficial to me because it seems do able if I was able to obtain the job I want. Based on the estimate and predictions it would be a great number. • I can always add more to the future in the payment or if I was to get some money from my birthday and I wanted to use it for my loan I could. • I wouldn't do the number from the 10 year plan just because you never know what can come up and you may not be able to pay for the month. • A car breaking down or getting sick can upset this. • As for my hypothesis I feel I will be able to repay my loans faster. It is just going to take some time. Once I have a job in my field I can even save up money that I can use to repay my loan once it is time.