1. Student Loan Budgeting
Ashley Johnson

2. Hypothesis
If I were to complete school right now my total amount owed is $ The interest rate is 4.29% and at $ per month payments for 10 years I would pay off my loan by June of 2030.

3. Student Loan Information
For my research into student loans I used the government website
When critically evaluating this website I find it to be accurate and adhering to ethical and legal standards, because it’s a government run website strictly informing students on the different types of loans and how they affect you.

4. Payment Importance and Consequences
It is important to pay off your student loans because failure to repay your loan will end up in default. Also, you will be reported to credit bureaus, which will affect your credit rating damaging your future borrowing ability. There is also the potential of legal action being taken against you to collect payment through garnishment of wages and withholding of tax refunds. (“Understanding Repayment”, 2016)
Choosing to pay off your loan sooner by making extra payments or even paying a little more each month is beneficial because it can reduce the interest paid and reduce the total cost of your loan. (“Understanding Repayment”, 2016)

5. Paying Off Student Loans
Various ways to make payments on your loans include:
Receiving your student loan statement electronically.
Make your student loan payment through electronic debiting.
Schedule recurring electronic payments.
Electronic bill pay, depending on which type of loan you are repaying, can be set up through the organization that services your loan. (“Repayment Plans”, 2016)
Things to make note of:
Making payments by postal mail, you should mail your payments directly to your loan servicer. (“Repayment Plans”, 2016)

6. Base Rate Loan Debt
A student in the Criminal Justice Studies Associates Degree program at Bryant & Stratton could face the need to acquire student loans to help pay for school
Per semester the course costs associated with this program are $8,595
Over 4 semesters $34,380
Books would also be added to the school loan
Per semester books could range between $450 - $900.
Figuring on the high side to be safe, that’s $3,600 for 4 semesters
A registration fee of $35 is incorporated into the final costs as well.
Since this is an on-line education class, housing, transportation, etc. is not required.
Final loan amount is approximately $38,015 (“Criminal Justice Studies AAS”, 2016)

7. Monthly Payments
Illustrated in following spreadsheets two sets of payment models are shown.
Fig. 1 shows what a loan payment schedule would be if one payment a month was made for a period of ten years.
This shows the monthly payment would be $ with slight changes in proportions being applied to the principal and interest, but a loose 2/3 of each payment being applied to the loan amount and 1/3 being utilized to satisfy the interest.
Fig. 2 shows that a loan payment schedule would be if one payment a month was made for a period of eight years.
This shows the monthly payment would be $ with slight changes in proportions being applied to the principal and interest, but a loose 2/3 of each payment being applied to the loan amount and 1/3 being utilized to satisfy the interest.
The conclusion from a comparison of these two examples is that not only will the length of the loan be shorter, but the amount of accrued interest in the eight year loan will be smaller. However, this does come at a cost of a higher monthly payment.

8. Monthly Payments (FIG. 1)

9. Monthly Payments (FIG. 2)

10. Analysis
With a potential career as a “Corrections Officer/ Jailer” salaries could range from $25,164 to as high as $53,584, with a median salary around $33,621. (“Correctional Officer / Jailer Salary" 2016)
Based off of this information and the ranges provided I would personally utilize the 10 year loan option as opposed to the 8 year loan option. I believe that the smaller payment will help with a lower starting salary and adjusting for costs of living such as rent/mortgage, utilities, etc.
I believe the smaller payment will help to transition into the working world easier and if after life levels off and finances clear up, you can gauge if there is potential to make extra payments each month to pay off your loan sooner.
A recent graduate given 6 months to find a job could have a relatively acceptable chance of making these payments and their normal cost of living as long as they live within their means.

11. References
Criminal Justice Studies AAS. (2016, January 29). Retrieved August 6, 2016, from
Correctional Officer / Jailer Salary. (2016). Retrieved August 6, 2016, from /Salary
Repayment Plans. (n.d.). Retrieved August 6, 2016, from
Understanding Repayment. (n.d.). Retrieved August 6, 2016, from