(Please note in my scenario I attend the College of Southern Maryland… and they have a partnership with the University of Maryland Global Campus. This helps by providing a discount for tuition and I won’t have to pay room and board because it’s local.)
Student loans are a form of financial aid used to help students finance the costs associated with higher education. It is well documented that student loan debt in the United States has increased dramatically over the past 20 years.
In this assignment, students will determine how much student loan repayment could cost, and how that might impact other financial decisions they need to make.
For this assignment, we’re going to assume you intend to pursue a bachelor’s degree once you’ve completed your program at CSM. Begin by visiting the website of the college or university you would like to attend. (It can be any college or university!) You’ll need to determine the annual rate for tuition, room, & board. Multiply this figure by 2 to calculate the total loan amount you would need to finance the 2 years necessary to complete your bachelor’s degree once you transfer, assuming you finance 100% of the amount.
Next, go to the Student Loan Calculator on the bankrate.com website to determine your monthly repayment amount. Assume the interest rate is 6% and the term of the loan is 10 years. Finally, add an additional $25 per month to your payment amount to see how this changes the calculations.
Using the results from your calculations in Part A, write a 2-3 paragraph self-reflection addressing the following:
What college or university did you select?
How much is the annual tuition, room, & board?
How much will your monthly payment be?
How much interest will you be repaying over the term of the loan?
How much does adding the $25 per month reduce the total amount of interest over the term of the loan?
Do these numbers surprise you?
How would this monthly payment impact other financial decisions you need to make after graduation?
Save your Word document as “student loans – your name”.
Rubric is attached. If you have any further questions or concerns please don’t hesitate to contact me. Thank you for your help on this assignment.
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