Quantitative Reasoning | Stephanie Groover Math 201 Hello! My name is Stephanie Groover and I am going to be discussing with you how I am going to be repaying my student loans. Quantitative Reasoning | Stephanie Groover

Overview The purpose of this project is for me to start thinking about how I am going to repay my student loans after I graduate. It is preparing me to come up with a plan ahead of time so I am prepared to repay my loan when it is time. Repaying my student loan is one of the most important payments that I will be making. I have started making plans for repayment of my students already. I have created a budget and I came up with an amount that I know I can pay for sure each month. Any month that I can pay extra I will do so. I have a separate savings account where I have started putting back money for the purpose of repaying my loan. My plan is to pay my loan off much sooner than I should. One important thing I am going to do is set up for my monthly payment to be automatically taken out of my bank account so I can be sure I am not late. The purpose for this project is for me to start thinking about how I am going to repay my student loans after I graduate. It prepared me to come up with a plan ahead of time so that I am prepared. Repaying student loans is very important so I have created a budget. I will pay extra on my loan any chance that I get because it is important to me to pay my loan off early.

Hypothesis A hypothesis is an educated, testable prediction about what will happen. In this project I will be making plans for repaying my student loans, determining my expected salary, creating a budget, and estimating the total amount of my student loans. Will my student loan monthly payment fit into my budget? Yes, it will fit into my budget. After graduation I will have a monthly income of $5700.00 a month just from my husbands income. That amount alone will be enough to pay my monthly student loan payment of $320.00. After I graduate I will also be getting a job and I will make any where between $40,000.00 to $50,000.00 a month. I plan to pay extra on my loan each month and get it paid off much faster. The question I chose to talk about is will my student loan monthly payment fit into my budget? Yes, it will fit into my budget and I plan to pay my loan off much faster.

Expected Salary My chosen field is an Alcohol and Drug Abuse Counselor in Georgia. To determine my expected salary I researched several different sources. The first source was from the U.S. Bureau of Labor Statistics and the estimated starting salary is $42,920.00. The second source was from pay scale and the estimated starting salary was $41,678.00. My expected annual salary will be $42,299.00. My estimated monthly salary will be $3524.92. My estimated net monthly salary will be $2643.69. I am going to be an Alcohol and Drug Abuse Counselor in Georgia. For my expected salary I chose two sources to get an estimate of what it would be. The first source was from the U.S. Bureau of Labor Statistics and the estimated salary is $42,920.00. The second source was from pay scale and the estimated salary is $42,299.00. My estimated monthly salary will be $3524.92. My estimated net monthly salary will be $2643.69.

Budget based on my estimated salary Net Monthly Income $ 3,500.00 Expenses House Payment $ 800.00 Car Payment $ 300.00 Cell Phone/T.V./Internet $ 100.00 Food $ 500.00 Car Insurance $ 80.00 Power $ 120.00 Gas $ 160.00 Credit Card $ 50.00 Class to be a Counselor $ 75.00 Total expense $ 2,185.00 Disposable income $ 1,315.00 On this slide I have made a budget based on my estimated salary. My total expense is $2,185.00 and my disposable income is $1,315.00.

Total amount of my student loans I have a direct subsidized Stafford student loan and a direct unsubsidized Stafford student loan. The total principal for both loans is $17,551.00 with an interest rate of 3.76%. That brings my total balance to $18,210.92. The total principal amount of my student loans is $17,551.00 with an interest rate of 3.76%. That brings my total balance to $18,210.92.

Monthly payment to repay my student loan The total amount of my loans are $17,551.00 with an interest rate of 3.76%. The minimum monthly payment I must make to repay my student loans in a 10-year term is $175.70. My total interest paid will be $3,533.04. I added the monthly amount to my budget and I have a disposable income of $1,139.03. 19.92% of my net monthly salary will go toward repaying my student loans. This does seem like a manageable amount. I am also going to have the money to pay extra on my loan each month. My goal is to pay $300.00 or more a month so I can get my loan paid off faster. The minimum monthly payment I must make to repay my student loans in a 10-year term is $175.70. My total interest paid will be $3,533.04. I added the monthly amount to my budget and I have a disposable income of $1,139.03. 19.92% of my net monthly salary will go toward repaying my student loans. This does seem like a manageable amount. I am also going to have the money to pay extra on my loan each month. My goal is to pay $300.00 or more a month so I can get my loan paid off faster.

Student loan future value and total cost The principal of my student loan is $17,551.00 and the total interest paid with the 10-year term is $3,533.04. My future value is $3,533.04 + $17,551.00= $21,084.04 My student loan future value and total cost: The principal of my student loan is $17,551.00 and the total interest paid with the 10-year term is $3,533.04. My future value is $3,533.04 + $17,551.00= $21,084.04.

Ways to reduce the amount of interest I pay on my student loans I can reduce the amount of interest I pay on my loans by paying them off early, start making payments while I am still in school, and I could also make my monthly payment and make a separate payment toward my interest. The shorter your loan term is makes your interest rate go down, monthly payments go up, and fewer payments you will have to make. Monthly Payment Future Value Interest Paid 5 year loan= $321.33 $17,551.00 $1,728.86 7 year loan= $237.97 $2,438.24 9 year loan= $191.81 $3,164.02 Here you will see ways that I can reduce the amount of interest I pay on my student loans. I can reduce the amount of interest I pay on my loans by paying them off early, start making payments while I am still in school, and I could also make my monthly payment and make a separate payment toward my interest. The shorter your loan term is makes your interest rate go down, monthly payments go up, and fewer payments you will have to make.

Conclusion My optimal monthly payment on my student loans will be around $300.00 a month. This payment will be beneficial to me because I will be paying more than what is required. I will be able to get my loan paid off in a shorter amount of time. This is realistic because I came up with a budget and if I pay $500.00 a month I will still have room to pay more if necessary. This project relates to my hypothesis because I came up with a plan that would fit my budget. When doing so I figured out I would have the opportunity to pay more than what is required of me because my husband has a job that already makes it possible to pay my monthly payment. When I start work I will be bringing in more money. Conclusion: My optimal monthly payment on my student loans will be around $300.00 a month. This payment will be beneficial to me because I will be paying more than what is required. I will be able to get my loan paid off in a shorter amount of time. This is realistic because I came up with a budget and if I pay $500.00 a month I will still have room to pay more if necessary. This project relates to my hypothesis because I came up with a plan that would fit my budget. When doing so I figured out I would have the opportunity to pay more than what is required of me because my husband has a job that already makes it possible to pay my monthly payment. When I start work I will be bringing in more money.