Quantitative Reasoning Student Loan Debt ENTER Anna Trofman
Quantitative Reasoning Student Loan Debt ENTER Anna Trofman
Overview The purpose of this project is to identify solutions to make loan repayment manageable and avoid the financial burdens associated with the loan.
Student loan repayment should not become a financial burden and should not infringe the ability to do what one wishes as no harm is done to others. Acquiring knowledge is considered as the technique for the achievement of basic safety, or, for the intelligent man, expressions of self-actualization. If repaying student loan makes one dominated by the physiological needs, then there is no sense in achieving a higher education. Maslow, A. (1943). A theory of human motivation.
ESTIMATED NET STARTING SALARY UPON GRADUATION Anna Trofman January 21, 2019 Maryland JOB TITLE Healthcare Social Worker Community Health Worker SOURCE MD DLLR 1 BLS 2 ANNUAL SALARY (GROSS) $41, 574 $42, 340 $41, 957 MONTHLY SALARY (GROSS) $3, 464 $3, 528 $3, 496 MONTHLY SALARY( NET) 25% tax rate $2, 598 $2, 646 $2, 622 1 Maryland AVERAGE Department of Labor, Licensing and Regulation 2 Bureau of Labor Statistics
Estimated Budget The estimated monthly expenses are based on the part of my realistic payments and necessary monthly spending. The NET income is based on the starting salary after receiving an associate degree in Health & Human Services. The balance comes negative to -$38. 60. The number would grow more in default according to all monthly bills and other expenses. However, there are some complications. People who are pursuing a degree in Health & Human Services more likely to continue at least to achieve a bachelor’s degree. Most states require a bachelor’s degree to apply for the license. Estimated Budget includes mortgage and HOA fee payments in the amount of $1, 187. High School grads achieving an associate degree in Health & Human Services would not consider paying $1, 187 for the rent. Adults are more likely to find higher paying jobs after graduation based on their experience.
Associate's degree in Human and Social Services Bryant & Stratton College Program Length: 2 years Program Costs $36, 390 for tuition and fees $3, 600 for books and supplies Total: The amounts shown above include costs for the entire program, assuming normal time to completion. Fewer than 10 students completed this program within normal time. 5% of Title IV students complete the program within 2 years. https: //www. bryantstratton. edu/disclosures/HUSS/Gedt_Print. html $39, 900
Based on Data Provided from Human and Social Services, Gainful Employment Disclosure and Award Letter
Loans SOURCE: Federal Student Aid. The loan balance is based on the information from the National Student Loan Data System (NSLDS).
$9500 DIRECT STAFFORD UNSUBSIDIZED $6, 000 with APR of 4. 25% Great Lakes Educational Loan Services, Inc. Principle Accrued Interest DIRECT STAFFORD SUBSIDIZED $3, 500 with interest of 0% $9, 500 $278. 34 Total Balance as of Feb 2, 2019 $9, 778. 34 FV (End of Grace Period) $10, 020. 84
Federal Loans Stafford Loans U. S. DEPARTMENT OF EDUCATION Servicer: Great Lakes *($255 Outstanding Interest as of December 31, 2018) The interest rate is the weighted average interest rate of all loans. Subsidized Loans do not accrue interest while in school.
Federal Loans Stafford Loans U. S. DEPARTMENT OF EDUCATION Servicer: Great Lakes *($255 Outstanding Interest as of December 31, 2018) The interest rate is the weighted average interest rate of all loans. Subsidized Loans do not accrue interest while in school.
Loan Amortization Schedule 10 -year Amortization Loan Schedule 9 -year Amortization Loan Schedule 7 -year Amortization Loan Schedule 5 -year Amortization Loan Schedule
Repayment Plans Based on Income WITH LITTLE TO NO INCOME, FEDERAL LOANS ALLOW HAVING PAYMENTS OF $0 PER MONTH WITH AN INCOME-DRIVEN REPAYMENT PLANS. Revised Pay as You Earn (REPAYE) Plan Details Pay as You Earn (PAYE) Plan Details Income-Based Repayment (IBR) Plan Details Income-Contingent Repayment (ICR) Plan Details
Ways to Reduce the Student Loan Debt Apply for an incomedriven repayment plan Consider student loan repayment assistance programs Get help from your employer Avoid Capitalization Federal Loans Make payments while you’re in school
Optimal Payment Solutions According to my Estimated Budget, the Pay as You Earn (PAYE) Plan would be the optimal option. The main benefit of the PAYE program is that your monthly loan payments are based on what you currently earn, not on what you owe. Also, there is a chance for a zero dollar monthly eligibility which considers as the payment if you would pay the actual amount.
There is much information available about Student Loan Repayment options. If someone is experiencing financial problems or hardship, the Department of Education offers programs including the possibility to postpone the loan, deferment, and forbearance, or a $0. 00 monthly payment based on your discretionary income, rather than your loan balance. However, there is not much information that under current Internal Revenue Service (IRS) rules, any loans forgiven under certain programs are considered taxable income. Imagine being 65 -70 years old just finishing a Student Loan Repayment Plan facing the tax liability of $40, 000 -$60, 000 income or more. That is definitely an undue hardship.
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