Managing Student Loan Repayment: A Quantitative Approach
Explore Cheryl Marr's quantitative reasoning project on starting to repay student loans post-graduation. Analyze budgeting, monthly payments, future loan values, and repayment strategies. Gain insights into loan repayment scenarios based on different timelines and interest rates.
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Presentation Transcript
Quantitative Reasoning. Portfolio Project. Cheryl Marr
This project is to get you thinking about how to start repaying your student loans after graduation.
With my monthly income I would be able to pay my monthly loan payment.
Student Name (print): __ Cheryl Marr_______________ Date: _____________________ Job title: ASPCA Officer__________________________________________________________ State: _______NY______________________________________________________ Sources used to estimate salary (at least two): Source 1: ___https://www.indeed.com/career/animal-control-officer/salaries/New-York-- NY_______________________________________________________ Estimated starting salary 1: ______$35,084______________ Source 2: __https://www.payscale.com/research/US/Job=Animal_Control_Officer/Salary/0d194c54/New-York- NY________________________________________________________ Estimated starting salary 2: ___$36,230_________________ Estimated starting annual salary (average of the two salaries above): ___$35,702___________ Estimated starting monthly salary: __$2,975____________ Estimated net monthly salary (after taxes): $743.75
Budget Net monthly Income 743.75 Expenses cell phone 40 food 100 insurance 150 wifi 75 electric 90 total 455 Eatimate monthly loan 225 Total monthly loan 207.32 disposable income 81.43
The monthly minimum payment of a $10,000 student loan in over a 10-year period would be $106.07. If I had two loans of the same price the monthly payment would be, $212.13. If I had one loan with an interest rate of 5% and the other with a 4% rate then the monthly payment would be, $207.32. This actual monthly payment was close to my estimate monthly payment. My estimate was a little higher then actual. 72% of my net income will be going towards my student loans.
The future value of the $10,000 loan with 5% interest rate would be $12,727.86. As for the $10,000 loan with the 4% interest rate would be $12,149.42.Total would be $24,877.28.
If I was to repay the loan in 9 -years then the monthly payment would be $115.17. The interest would be $2,438.66. Future value would be $12,438.66. 7-years: monthly payment $141.34. Interest $1,872.48. Future value $11,872.48. 5-years: monthly payment $188.71. Interest $1,322.74. Future value $11,322.74. As the years decreased the monthly payments increased but the interest decreased.
My monthly payment would be about $207.Yes, this monthly payment was close to my estimated payment. So therefore, I would be able to afford to make the payments.
