Math 201 Student Loan Portfolio Project By: Maria Martin This is my Student Loan Portfolio Project for Math 201 by Maria Martin

Project Purpose This purpose of this project is to understand and identify different strategies and methods to adequately repay my student loans. The purpose of my project is to think about different ways to repay my student loans.

Hypothesis If I diversify my portfolio after getting hired, I may be able to pay off my student loans prior to the 10-year average. If I am able to invest in different areas, then I will have multiple sources of income to possibly pay off my loan early.

Expected Salary after Graduation https://www.aapc.com/resources/research/state-medical-coding-salary/oklahoma $50,000 average https://www1.salary.com/OK/Lawton/Medical Billing And Coding-Salary.html $44,769 average Gross Average $47,384 Monthly $3,948.67 $987.17 Tax @ 25% Monthly Net Income is $2,961.50 This two sources that I found where I live in Oklahoma for the job I am seeking and the average salaries. Combined the average per monthly net income would be $2,961.50.

Monthly Budget Net Monthly Income Expenses Rent $450 Phone $210 Cable/Internet $180 Car Insurance $260 Gas $120 Electric $100 Water $90 Food $200 Student Loans $263 Total Expenses $1873 Disposable Income $1088.50 As you can see by my net monthly income expenses, I should still have enough funds to invest and diversify my portfolio.

Student loan Liability Amount of dept owed is $29049.00 $263 per month in student loans with an interest rate of 1.6%. The student loan amount I owe is $29,049.00. I figured if I pay $263 a month at 1.6% interest, I will have it paid off in 10 years.

Student Loan monthly payment My net monthly income is $2,961.50 The percentage of my net monthly salary will go toward repaying my student loan is 8.85%. My monthly payment would be $263.00 Yes, it would be a manageable amount. My monthly student loan calculation shows that my loan payment would be $263.00 which is certainly manageable.

Total Cost of student loan The future value of the loan $33,696.84 The total interest paid with the 10-year term $4,647.84 The total amount of my student loan is $33,696.84. I will be paying $4,647.84 in interest for a 10-year term.

Early loan repayment Five Year Seven Year Nine Year Monthly payment $504.10 $365.78 $288.98 Interest Paid $2,323.92 $3,253.49 $4,183.06 Future Value $31,372.92 $32,302.49 $33,232.06 If I am able to repay my loan early these are the calculations and what the monthly payments would be.

Project Portfolio Conclusion I feel that I can pay $260 a month. It may take longer for me to pay my loan back however; I will have more disposable income to invest in Bonds or CD’s which could be used to help pay my student loan in the future. According to my monthly budget I can use more of my disposable income to invest in different securities that will help me in repaying my student loan. However, I feel I could pay $260.00 a month but it may take longer to pay it back.

References https://www.aapc.com/resources/research/state-medical-coding-salary/oklahoma https://www1.salary.com/OK/Lawton/Medical Billing And Coding-Salary.html https://www.bing.com/images/search?q=images+of+student+loans&qpvt=images+of+stud ent+loans&FORM=IGRE