Taylor Young Bryant & Stratton College Math 103 Mrs. Dobbins Financial Math Project- Student Loan Budgeting

Hypothesis In this project I will be figuring out my student loans. I will set up a payment plan that will help me pay back my student loans faster. I will provide my salary amount and my monthly budget to calculate how much I should pay monthly for my student loans. I believe that if I chose the 5 year pay back plan I would save the most money.

Annual Salary The average salary for a radiology technician is $55,910 per year and $26.88 per hour. I would make around $1075.20 a week, so monthly with taxes taken out I will be making $3440.00.

Taylor and danny’s monthly budget Food $200.00 My monthly expenses will be $2,200.00 Miscellaneous $300.00 Housing $800.00 Utilities $100.00 Cell Phone $120.00 Internet $30.00 Clothing $50.00 Medical $100.00 Insurance $500.00

Research- student loans If you receive a federal student loan, you will be required to repay that loan with interest. Interest rates on federal student loans are set by congress. The student loan rate for a direct subsidized loan is 3.86% and so is direct unsubsidized loans.

Student loans Its important to pay off your student loans because you don’t want to have to carry the student loan debt. The benefits of paying off you loans sooner than later are not stressing about having to pay them off anymore. Also it will lower your debt to income ratio and you’ll be saving more money due to not making anymore monthly payments. If you do not pay your student loans on time you will have to pay a charge and your credit will go down.

Principal The total principal that will be acquired over my entire career at Bryant & Stratton college. Four semesters Subsidized loans : $3,750.00 Principal : $15,000.00

Monthly payment – Future value, & interest Using the M Formula , Monthly payment for 10 years : $150.87 Future Value : $18,104.40 Interest: $3,104.40

desired monthly payment In 7 years Monthly payment : $204.03 Future Value : $17,138.52 Interest : $2,138.52 In 5 years Monthly payment : $275.25 Future Value: $16,515.00 Interest : $1,515.00 The 5 year plan is the best.

desired monthly payments The difference between the calculated monthly payments are in 10 years I will be paying $150.87 every month but will be paying an interest of $3,104.40 In 7 years you will be paying $204.03 every month but my interest goes down to $2,138.52 In 5 years I will be paying $272.25 every month but will be paying $1,515.00 in interest.

Desired monthly payment. The desired monthly payment for myself would be to pay off my student loans in 5 years. If I chose the 5 year plan over the 10 year plan I would save $1,589.40 from interest building up. This plan would be most realistic because it would save me the most money.

Reference page Tan, A. (2013). Student Loan Rates Are Headed Up. Kiplinger’s Personal Finance, 67 (6), 13. Javine, V. (2013). Financial knowledge and student loan college students. Financial Services Review, 22(4) , 367-387 Radiologic Technologist. (2013, January 1). Retrieved from http://www.bls.gov/ooh/healthcare/radiologic- technologists.htm