COLLLEGE LOANS AND REPAYMENT PROJECT
I think that the College Debt issue will be the defining issue impacting young people who go to college today just like the Great Depression/WII was the defining issue for my parent's generation.
Your college debt will:
- Have a huge impact on who you marry. Are you going to take on another person's debt or are they going to take on your debt?
- Have a huge impact on if/when you buy a house. Many recent graduate live in their old rooms in their parent's house because they cannot afford to either rent or buy a living space.
- Have a huge impact on what industry you end up making your career. If you owe a lot you are going to need to have a high paying job.
- Strongly impact all the decisions you make for the next two decade or more.
There is more than $1 trillion in student loans outstanding in this country. As prices soar, you will hear many people argue that a college degree statistically remains a good lifetime investment, but is it? Instead of having $120,000 worth of debt and be 4-6 years older would it not be a better investment to use a fraction of that amount of money to start a business at 18 or 20? Studies predict that over 1/3 of today's students will be entrepreneurs.
A novel option:I have a friend whose son has "screwed" around for his years after high school and is now 23. At 24 he can be an"independent student" (be careful how you do this) and can go to most colleges and universities for free. So, get a job for five years, learn how the real world works and what you really want to do, then go to college at 24
About two-thirds of bachelor's degree recipients borrow money to attend college, either from the government or private lenders, according to a Department of Education; but this total number of borrowers is actually much higher since the DOE does not track borrowing from family members.
In other surveys about 45 percent of 1992-93 graduates borrowed money; and these surveys included family borrowing as well as government and private loans.
For all borrowers,
- 10 percent owe more than $54,000
- 3 percent more than $100,000, the Federal Reserve Bank of New York reports.
1. Go to College costs-CNNMoney
Pick OCC (they don't have Saddleback numbers) and one Universityyou would like to go to. You will come up with something like the following.
Use these TOTAL number to calculate the amount of loan you will need.
You will come up with two graphics like below.
2. Go to Student Loan Calculator
Smart Calculator claims that the average student debt is $28,400 which at 4.66% interest will cost you $297 a month for ten year to pay off.
Read all of the informationon this site CAREFULLY. For example, you can get Stanford loans for $23,000 at only 4.29%. After this most students will have to get a bank loan. These go for around 12%. So you need more than one loan.
- Use your loan number and input how many loans and how much money you will need.
- See how much your total loan would cost over TEN years.
- You will see your numbers and a graph like below.
- Input your loan figures and show me something like the following
PROJECT INFORMATION:
- Include three images like I have above of your numbers, calculations, and graphs.
- Write a two page (the amount of room the graphs take up do not count toward thesetwo pages) paper discussing your choices and their outcomes for your life for the next 20 years.
When I say your choices include things like:
- Going to two years of community college to save money
- Living at home vs apartment vs on campus
- Making sure to marry someone with a lot of money
- Saving money for college and therefore not having to borrow as much
- Family's & Relative's money available
- Waiting to go to college until after 24 and have been declared "independent"
- The amount of money your parents make which affects your ability to get loans based on need that do not have to be paid back
- Scholarships based on merit
- Having a part time job (factor in how this will impact how long it will take you to graduate)
Attachment:- loans_and_repayment_project.rar