1. STUDENT LOAN BUDGETING AMY HORTON BRYANT AND STRATTON APRIL 7, 2015

2. Hypothesis This project will help me create a budget for myself for after I graduate and help me stay on track to get my student loans paid off in the most efficient way that works best for me.

3. Annual Salary  The average salary for a medical assistant in Rochester, NY would be $32,309  After 20% taxes are taken out the remaining balance would be $25,848  My monthly take home pay would be $2,153.93

4. Monthly costs Monthly cost How much I spend per month Food$200.00 Housing$915.00 Cell Phone$40.00 Medical$20.00 Car Insurance$100.00 Gas$120.00 Entertainment$100.00 Total Monthly Expenses:$1495.00

5. Paying off student loans  It is smart to consider paying off your student loans as early as you can.  By paying a little more today, using extra cash from your monthly budget, tax refunds or bonuses, could benefit you for the rest of your life down the road.  It’s important to make payments on time to build your credit history. Delinquency and default can negatively affect your position to borrow money in the future.

6. Consequences of not paying loans  Your loans will be turned over to a collections agency.  You can be sued for the amount of the loan.  Your wages can be garnished.  Your tax refunds can be intercepted.  You'll lose social security benefits.  Your credit will be damaged.

7. What I will owe  At the end of my semester I will owe $15,000 in unsubsidized. I got this number by figuring out what I owe per semester ($3,750) and multiplying it by 4 semesters.

8. Desired Monthly Payment

9. What I learned  It would be in my benefit to pay off my student loans in 5 years because I would be saving $1,586.40 in interest.  I will be paying more monthly, but saving more money in the long run.  I will have to be very careful not to go over my budget every month but it will all be worth it in the end.

10. References  Klosowski, T. (2015). How to manage a student loan. Retrieved from http://money.howstuffworks.com/personal-finance/debt-management/manage-student- loan4.htm  Pay off your loans early. (2015). Retrieved from https://www.studentloan.com/learn/pay-off- early/