MATH201- Quantitative Reasoning Student Loan Portfolio project Jennifer Posch Hello my name is Jennifer Posch, and this is my Math201 Quantitative Reasoning student Loan Portfolio Project.

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. What happens after I graduate? I will have to find a job, hopefully in my field, and start paying back these loans. This project has helped me learn how to pay back the loans.

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? My 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? Will I? Lets find out together.

Expected salary after Graduation For an Administrative Assistant $47,209 per year $2,950.50 per month I am here to get a degree in Business. I would like to open a daycare one day, However I do not have the best in the business side of things. A great way would be to become an administrative assistant. In my state, which is New York, the average salary is $47,209 per year. It would average out to $2950 per month before taxes.

Budget Budget Net Monthly income $ 2,950.50   Expenses Cell phone $ 200.00 Food $ 400.00 Car insurance $ 180.00 Cable and internet Rent $ 800.00 Credit cards $ 50.00 loan repayment $ 543.35 Total Expense $ 2,373.35 Disposable income $ 557.15 For my mock budget, I gave myself a net income of $2,950. I sorted out my bills and came up with the results in the table. 200 for my cell phone. 400 for food, groceries are expensive. 180 for car insurance, 200 for cable and internet rent is around 800 dollars and 50 dollars for paying off credit cards. I calculated my monthly loan repayment to 543.35. After all of this I would be able to have a deposable income of 557.15.

Estimate of student loans Total amount $47,215 Stafford interest rate 6.8% Monthly rate from award letter $393 Ahh student loans, as of right now I have it clocked at $47,215, cant wait to repay it. The Stafford loan rate I was given by my financial statement is 6.8% and my award letter stated that I can pay back 393 dollars.

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. But however coming off that last slide, if I was to repay the ;loan back in 10 years this is the result I obtained. The amount would be 543.35. It would be nice paying it back in 10 years, but that only works if I can obtain a job that fits with the monthly payment. It would be a whole 18.42% of my monthly salary. The biggest part of having that payment is I would have to make sure I save the money for that date it comes out of my bank account.

This is the loan calculator for my loan This is the loan calculator for my loan. As you can see the payment for 10 years and how much interest that the table increases. It also shows the final interest which is 13,997.06.

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 When playing around with the loan calculator, I was able to calculate what would happen if I were to pay it in 4, 6, 8 and 10 years. This shows how the interest is the number that gets you.

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. 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.