Student Loan Budgeting Sherika Tanksley

Hypothesis In this project, through examining mathematical calculations and conducting adequate research, I will determine the total student loan principal from the student entire education at Bryant and Stratton, as well as how much interest will be accumulated from student loans. “By the completion of my degree program in Criminal Justice, I will have a total balance of 28,000 with an interest rate 4%. My monthly payment will be $300.00 with a pay off date off October 2025”

Total Loan Balance Annual total for 2yr criminal justice degree 29,138.8 Tuition for 2yrs is 8,760 Selective courses have additional course fee such as InFit 123-$125.00 Math 097-$125.00 Engl 099-$146.00 Sosc 116-$142.80 Sosc 226-142.80 Cap265-142.80 Plus an additional $584.00 credit hour Total=29,138.8

Loan payoff My annual total by the time of my completion of the Criminal Justice program will be 29,138.8 My schedule payment is $295.00 for 10yrs, with an annually interest of 4% with schedule number of payments total 120 I added $197.89 the principal to the interest 97.13= $295.00 If I pay my loan off in less than2yrs which makes that 8yrs, my schedule payments would be $355.08 annual interest 4% schedule number of payments total 96 By paying my loan off in 2yrs less the interest charge is less because I’m paying more in the schedule payments.

The benefits to paying off loan Paying off your student loan debt early can save you a good chunk of money. For example, if you have student loan debt of $10,000 at an interest rate of 7 percent, with a loan term of 10 years, paying off the balance in full would save you $3,932.94 in interests. You should think of paying off debt as an investment. By paying off the $10,000 loan in full today, you are getting an annual rate of return of 7 percent. (http://www.thefiscaltimes.com/Articles/2014/04/24/Pros-and- Cons-Paying-Your-Student-Loans-Early) Understand your debt, regardless of the size of your debt, you need to understand it. If you have student loan debt and are making the minimum monthly payments, you may have considered paying off student loans early by making even more payments each month. When you start repaying a loan, you have a set amount of time to repay your loan known as the length of repayment.  A longer length of repayment means a lower monthly payment, but it also means a higher total amount repaid over the life of the loan.

Does it seem that a recent graduate could afford such a monthly loan payment? Yes it seems affordable for a new graduate will be able to afford monthly payment because you could pay 10% of your earnings. There also other programs for high debt such as loan forgiveness programs that is affordable.

  What I learned A standard amortizing loan--also called an even-payment loan--has constant payments over its life. With this approach, a large percentage of your monthly payment is applied to interest in the early years of the loan. But in the later years, as the loan balance slowly declines, more and more of each month's payment is applied to the principal PMT. Calculates the payment for a loan based on constant payments and a constant interest rate. FV. Returns the future value of an investment based on periodic, constant payments and a constant interest rate. IPMT. Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate. NPER. Returns the number of periods for an investment based on periodic, constant payments and a constant interest rate. RATE. Returns the interest rate per period of an annuity. CUMPRINC. Returns the cumulative principal paid on a loan between start_period and end_period. (Analysis ToolPak)

Reference (http://www.thefiscaltimes.com/Articles/2014/04/24/Pros-and-Cons-Paying- Your-Student-Loans-Early) http://www.exceluser.com/formulas/term-loan-amortization.htm https://www.bryantstratton.edu/pdf/catalog.pdf