1. Student Loans by the #s Total U.S. student loan debt
$1.48 trillion
Americans with student loan debt
44.2 million
Average student loan debt for college graduates
$37,172
Average monthly student loan payment
$351
studentloanhero.com

2. 71% of college graduates from 4-yr colleges have student loan debt
66% of graduates from public colleges have loans – average debt of $25,550
75% of graduates from private colleges have loans – average debt of $32,300
88% of graduates from for-profit college have loans – average debt of $39,950
80% federal loans/20% private loans
studentloanhero.com

3. 2016 College Graduates Average Loan Debt = $37,174
Monthly Loan Payment = $416.88
Repayment begins 6 months after graduation
10 years – 120 monthly payments
Cumulative Payments = $50,025.01
Total Interest Paid = $12,851.01

4. How Much Debt Can I Afford?
Calculate the maximum you can allow yourself to borrow based on your future career choice
Experts recommend student loan payments should not exceed 10% of future monthly income
Estimate your future income by visiting Bureau of Labor Statistics website:
Ask students what they think the average salary is from some careers they are considering – throw out prizes/candy for those that participate
Registered Nurse
$68,450
Computer Programmer
$79,840
Mechanical Engineer
$84,190
Elementary School Teacher
$55,490
Accountant
$68,150

5. The impact my Student Loan Payment has on my life choices
Calculate your 10% debt amount based on future income at:
What’s the real bottom line? $45,000 a year = $2,000 take-home a month Now, how does this look?
Rent/utilities
Food/groceries
Transportation
Student loan payment
Credit card payment
Oops!! $103 left /month?
$957 $220 $300 $120 (less than $4/day)
Budget is another opportunity for student involvement – ask them to guess costs before displaying them
Rent average $957 – this is from rentcafe.com. Studio Apartment in Mpls (one bedroom = $1,209)
Food/groceries $ % for groceries and 5% for dining out usatoday.com
Transportation – this varies – includes car payment, insurance, gas, maintenance
Student Loan Payment – Will vary based on your debt load – This is for $26,500 which is around a 4yr state college student loan debt average. * putting that extra $100 towards your student loan will reduce your loan repayment by 3 years and save $1,000s of dollars
Credit card payment - $100. Average credit card debt is currently $3,000. Using a calculator on bankrate.com that would be a minimum monthly payment of $120 – taking 116 months (almost 10 years) to pay off for a total repayment of $4,810
What about cell phone, renters insurance, movies, etc.????

6. Alternatives to Student Loan Debt
Pay as you Go
Tuition Payment Plans
Summer/school year earnings
School Selection
2yr for generals and then transfer to 4yr
Look at residency requirements
Scholarships, Scholarships and more Scholarships!
High school career/college center

7. Scholarship Search Tips
Create a designated account to help manage your scholarship applications
Keep track of usernames, passwords and scholarship deadlines
Focus on local and college scholarships 1st and national scholarships 2nd
When looking into college scholarships, ask EVERYONE! Admissions counselor, financial aid counselor, department head, clubs, student organizations, coaches
Follow the scholarship directions EXACTLY

8. Scholarship Search Tips Con’t
Letters of Recommendation:
Line up your contacts willing to write letters of recommendation ahead of time so you have a go- to list of 5-10
Give your contacts a 2-3 week notice of deadlines
Give your contacts details about the scholarship and your qualifications so they can tailor their letter

9. Scholarship Search Tips Con’t
Essay:
Make a list of your accomplishments for all four years of high school (academics, sports, clubs, arts, volunteer work, church work, etc.) to serve as a handy reference tool
Write the core of an essay that you can use repeatedly, then add to and customize for each scholarship
Be personal and passionate – make a connection with the reader

10. Scholarship Search Tips Con’t
Create a Scholarship Club with friends to share resources and divide the research work
Apply for scholarships early and often and keep applying – high school freshmen through college graduates
If you earn a scholarship, determine if it is renewable
If renewable, what are the renewal criteria? (minimum GPA, minimum enrollment, what if I change my major, my college, my living arrangements?)
If not renewable, how will I replace this scholarship money next year? (new scholarships, loans, work?)
Also be aware that scholarships may impact your financial aid award. If it does, it usually reduces your loan.

11. Questions?