1. After High School Graduation: Attend a Junior College and Then Transfer? Immediately Attend a Four-Year Institution? Which Is More Financially Advantageous? Presented by: Paul DiMola Eckart Lyew Shawn Ricordati Mike Santa Ana

2. Assumptions  California Polytechnic University, Pomona Five years to graduate as an engineer Loan to pay off all expenses @ $15,000 6.62% interest rate on a federal unsubsidized college loan, with a 10 year payback period No commuting involved.  Riverside Community College Full-time student with 12 units/semester, year-round Part-time job – 20 hrs/wk @ $8/hr Commuting distances are equal (Home is equidistant between work, RCC, and CPP) Goal is to obtain a General Education Certificate.

3. CPP Specifics  Total Expenses per year = $74,245.40 (PWC) Includes: ○ Annual school fees ($5,559.08) ○ Annual living & nutrition ($9,290) Loan will cover all expenses with a leftover total annual savings of $754.60 Loan payback required within 10 years of graduation  Loan payable for $15,000/yr

4. RCC Specifics  3 years of GE fulfillment to transfer  Living costs are negligible  Costs: Fees ($821) Commuting ($1040) [$20/wk]  Total expenses/yr = $1,861  Income/yr = $8,320 Total savings before transfer = $19,377 ; will be use to cover ~2 years of loan payback  CPP loan to begin upon first year of transfer ($10,000)  Total expenses per year including transfer = $19,797.24 (PWC)

5. Initial Conditions  For all sensitivity analysis… Portion of income will be set aside for savings @ 20% per pay period, before any loan payback/yr or expense payments Both scenarios require loan payback within 10 years Annual pay raise of 4% Starting salary of $50,000 Inflation Rate set at 3%

6. Cash Flows Loans cover all school and living expenses while at CPP Working while at RCC helps to cover school expenses Loan continues to cover school expenses once at CPP

7. Sensitivity Analysis: Used for analysis

8. Sensitivity Analysis Continue: RCC was favored in all sensitivity analysis: Inflation Rate Starting Salary Repayment Period Pay Raise Percent Breakeven Analysis using Pay Raise Percent Variation

9. CPP vs RCC: Savings Comparison The Best Savings

10. Final Thoughts: CPP vs RCC: Savings Comparison 25 Year Projection