Strategic Student Loan Repayment Plan by Fae Brock
Develop a strategic plan to repay student loans efficiently after graduation. Organize loan records, choose a repayment plan, and set a goal to pay off loans in 15 years with a monthly payment of $100. Estimate monthly budget and prepare for loan repayment based on projected income as a Human Resources Manager in Greenville, NC. Understand the total amount of student loans at graduation to manage finances effectively.
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STRATEGIC STUDENT LOAN REPAYMENT PLAN Fae Brock Student Loan Project J-MATH 201068 A. AKAM FEBRUARY 18, 2022
2 STUDENT LOAN REPAYMENT STRATEGY Make sure you have a strategy in place to repay your loans Identify your loan servicer Locate all your loans records and organize them Know where your loans came from Find out the amount of your student loans Complete an exit Counseling Determine a range of what you can afford to pay each month Choose a repayment plan
3 STRATEGIC STUDENT LOAN REPAYMENT PLAN After graduating I want to pay $100 monthly towards all my student loans Pay off all my student loans within 15 years.
4 HR Staring Salary Inquiry Determining my expected salary after graduation from Bryant & Stratton Salary.com As of Jan 19, 2022, the average annual pay for a Human Resources Manager in Greenville, NC is $60,262 a year that works out to be approximately $28.97 an hour. This is the equivalent of $1,159/week or $5,022/month Determine the monthly salary (divide the expected annual salary by 12). Then compute the net (after tax) pay. For simplicity we will use a 25% tax rate. Realize that taxes are complicated, so this is just an estimate. HR Staring Salary Inquiry Indeed.com As of January 18, 2022, the average annual pay for a Human Resources Manager in Greenville, NC is $59,295 a year that works out to be approximately $25.52 an hour. This is the equivalent of $1,085/weekly or $4,198/monthly Between two projected salaries (within $5,000 or so). Average the two salaries (add the salaries and divide by two) to determine your expected annual salary.
5 Fae Brock s Monthly Budget Action Plan Monthly Monthly Monthly / $100.00 EXPENSES Student Loan Payment INCOME EXPENSES Fae Brock s budget based on my estimated salary Miscellaneous Income Salary 300.00 4,500.00 4,800.00 Home Cable TV Cellular telephone Electricity Home Mortgage County Property Taxes Internet Landline telephone Natural Gas Water/Sewer/Garbage Insurance Auto Health Homeowner's Life 55.00 35.00 210.00 1,000.00 45.00 Income Total 45.00 9.63 PAYROLL DEDUCTIONS Federal Income Tax FICA Tax State Income Tax 401-k Retirement Plan Payroll Deductions Total 52.00 39.20 22.00 Insurance Total 50.00 Transportation Fuel Maintenance/Repairs Truck Payment 100.00 30.00 56.00 30.00 1,436.00 113.20 Home Total Transportation Total 130.00 FAMILY SAVINGS Daily Living Charitable Contributions Clothing Credit Card Payment Dining Out Entertainment Groceries Health Club Dues Household Supplies Miscellaneous Pet Food / Vet bills Daily Living Total Emergency Christmas Medical/Dental/Vision Vacation Family Savings Total 25.00 Total Expenses 1,986.00 100.00 Net Monthly Cash Flow 2,695.80 125.00 Reminder: Cash Flow = Income - Deductions - Savings - Expenses 200.00 50.00 25.00 25.00 300.00
6 Fae Brock s estimated total amount of my student loans at graduation THE TOTAL AMOUNT OF MY STUDENT LOANS IS $65,672.00 THE INTEREST RATE FOR MY STUDENT LOANS IS $2,520.00
Student Loan Amortization Calculations Loan Amortization Schedule Enter Values Loan amount Loan Summary Scheduled payment Scheduled number of payments Actual number of payments Total early payments Total interest $65,672.00 $120.00 Annual interest rate 4.23% 120 After comparing both my hypothetical monthly salary verses my real salary. Loan period in years Number of payments per year Start date of loan 10 0 $0.00 $0.00 2/3/2042 Lender name Optional extra payments $0.00 Nelnet Payment Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Payment Date 2/3/2042 $1,568.05 3/3/2042 $2,546.02 4/3/2042 $8,929.86 5/3/2042 $8,760.02 6/3/2042 $3,960.94 7/3/2042 $1,131.68 8/3/2042 $5,847.74 9/3/2042 $6,157.45 10/3/2042 $3,500.00 11/3/2042 $6,000.00 12/3/2042$3,500.00 1/3/2043 $6,000.00 2/3/2043 $6,000.00 3/3/2043 $1,389.00 Beginning Balance Scheduled Payment $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 Extra Payment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total Payment $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 Ending Balance Cumulative Interest Principal Interest 1568.05 1568.05 1637.10 $1,568.05 2546.00 2546.02 2658.15 $4,114.07 8929.86 8929.86 9638.40$13,043.93 8760.02 8760.02 9455.08$21,803.95 3960.94 3960.94 4093.60$25,764.89 1131.68 1131.68 1169.59$26,896.57 5847.74 5847.74 6200.90$32,744.31 6157.45 6157.45 6568.83$38,901.76 3500.00 3500.00 3500.00$42,401.76 3500.00 3500.00 3500.00$45,901.76 6000.00 6000.00 6000.00 $51,901.76 6000.00 6000.00 6000.00 $57,901.76 1389.00 1389.00 1389.00 $59,290.76 3861.00 1389.00 1389.00 $60,679.76 $120.00 $120.00 $120.00 $120.00 7
8 Determining the total cost (future value) and the amount of interest that I will pay on your student loans If I follow the standard 10-year plan, I will be paying $14,980.00 for a total of interest paid. For my future value, in total my student loan will be $80,652.00 that I will owe for a 10-year plan.
Reducing the Amount of Interest Paid Years Monthly Payment Future Value Interest Paid 5 $1,628.60 $175.00 $10,557.00 7 $133.89 $11,246.76 $2,317.76 9 $110.00 $11963.16 $3,034.16 9
10 Conclusion Strategic Student Loan Repayment Plan The presume the payment would be beneficial and realistic for me because my monthly bills are very important. They make up the bulk of my budget and takes most of my paycheck. The optimal monthly payment I would choose to make would be $175.00. In my opinion the research and findings from this project were related to my hypothesis from step 1 because it helped me to comprehend and see where I can cut or decrease expenses so you can pay off my student loans. I know the type of student loan debt I have. I have all the important information and details needed to make necessary changes. By gathering all the information needed, I can apply it to my advantage in helping me tracking spending and setting realistic financial goals instead of unrealistic ones.
