MATH 108X - Student Loans Project

Project Goal: To learn about student loans and how the length of time to pay off the loan as well as
the amount borrowed effects your financial future.

Jordan is a single male student with 6 more semester to graduate. After thinking carefully about his
finances, he decided he needs to take out a student loan to finish school.

Jordan estimated that he will need $4,160 per semester to pay for the essentials of housing, tuition,
books, food, travel, and personal items. He earns $1,250 a semester, but will need to borrow the
remaining amout each semester. Jordan was approved to take out one loan for each his remaining
six semester for up to $4,992 per loan.

Jordan must decide if he should (1) take out the full amount of student loans being offerred, which
would make life really nice right now, or (2) only take out exactly what is needed, which would be
just enough to get by on right now, but would make life easier after he graduates.

Identify at least 2 variables and at least 2 assumptions in Jordan's situation.

Variables:
Needs 4,160 per semester
He Earns 1,250 a semester

Assumptions:
This will take 6 semester to graduate. He is hoping his expense stay
the same and his income will stay the same.

Jordan found the APR 4.45% on the Federal Student Aid Website. To make calculations easier he
assumes that the rate will stay the same for all 6 semester. Even though he realizes that prices and
wages change, he also assumes that his essenntial expenses will stay close to $4160, and that he can
earn about $1250 each semester. He plans to use a 10-year loan term. These assumptions make it
easier for Jordan to apply quantitative tools to his situation.
 What is the total amount of money Jordan needs to finish
school? $24,960.00

How much money will Jordan earn on own? $7,500.00

What is the minimum amount of money that Jordan needs to

borrow? $17,460.00

What is the maximum amount of money that Jordan could

borrow? $29,952.00

Complete the 2 Amortization Schedules to the right to compare loans.

If Jordan takes the maximum amount how much extra money
could he have each of his remaining 6 semesters? $2,082.00

Jordan created these charts to help him make a good decision.

Monthly Payment Total Payment Comparison Total Interest Comp

Comparison $8,000.00
$450.00 $40,000.00
$7,000.00
$400.00 $35,000.00
$6,000.00
$350.00
$30,000.00
$300.00 $5,000.00
$25,000.00
$250.00 $4,000.00
$200.00 $20,000.00
$3,000.00
$150.00 $15,000.00
$2,000.00
$100.00 $10,000.00
$1,000.00
$50.00
$5,000.00
$0.00 $0.00
Borrowing the full Borrowing just Borrowing the Bor
$0.00
amount allowed what is needed full amount wh
allowed
 $1,000.00
$50.00
$5,000.00
$0.00 $0.00
Borrowing the full Borrowing just Borrowing the Bor
$0.00 full amount wh
amount allowed what is needed
allowed

Which loan option do you think would be best for Jordan's situation?

The minimum option

Explain why you chose this loan option for Jordan. Include other things that Jordan
should consider when making a decision about student loans.

The minimum option is the best option because it helps Jordan avoid
unnecessary debt. We have been taught by the prophet to avoid debt and
I believe that it would be better if he barrowed as little as needed so he
can get out of debt as soon as possible.
Number Check: 7 years of paying down student loans. Month 84: Column O, t
minimum loan, Jordan still owes $6073.50. Month 84: Column U, the maximu
loan, Jordan still owes $10,418.86!!!

Number Check: For month 120 Column O and Column U shoul

be zero!!
Number Check: For month 120 Column O and Column U shoul
be zero!!
ct

o pay off the loan as well as

If you are interested in more information about

student loans, browse this website.

thinking carefully about his

.

ssentials of housing, tuition,

will need to borrow the
oan for each his remaining

oans being offerred, which

needed, which would be
raduates.

on.

oping his expense stay

ke calculations easier he
he realizes that prices and
se to $4160, and that he can
hese assumptions make it

Jordan's Minimum Loan Amount

Loan Amount:
Loan Interest Rate:
 Years to Repay Loan Amount:
Monthly Payment:
Total Payments:
$24,960.00 Total Interest:

$7,500.00 Payment =
Month Beginning Balance To Interest
1 $17,460.00 $ 64.75
$17,460.00 2 $17,344.22 $ 64.32
3 $17,228.00 $ 63.89
4 $17,111.36 $ 63.45
$29,952.00 5 $16,994.28 $ 63.02
6 $16,876.77 $ 62.58
o compare loans. 7 $16,758.82 $ 62.15
Hint 8 $16,640.43 $ 61.71
9 $16,521.61 $ 61.27
$2,082.00 10 $16,402.35 $ 60.83
11 $16,282.64 $ 60.38
12 $16,162.49 $ 59.94
13 $16,041.89 $ 59.49
14 $15,920.85 $ 59.04
15 $15,799.36 $ 58.59
ood decision. 16 $15,677.41 $ 58.14
17 $15,555.02 $ 57.68
18 $15,432.17 $ 57.23
Total Interest Comparison 19 $15,308.87 $ 56.77
$8,000.00 20 $15,185.10 $ 56.31
21 $15,060.88 $ 55.85
$7,000.00
22 $14,936.20 $ 55.39
$6,000.00 23 $14,811.06 $ 54.92
24 $14,685.45 $ 54.46
$5,000.00
25 $14,559.38 $ 53.99
$4,000.00 26 $14,432.84 $ 53.52
$3,000.00
27 $14,305.83 $ 53.05
28 $14,178.34 $ 52.58
$2,000.00 29 $14,050.39 $ 52.10
$1,000.00 30 $13,921.96 $ 51.63
31 $13,793.06 $ 51.15
$0.00
Borrowing the Borrowing just 32 $13,663.67 $ 50.67
full amount what is needed
allowed 33 $13,533.81 $ 50.19
 $1,000.00

$0.00
Borrowing the Borrowing just
full amount what is needed
allowed
34 $13,403.47 $ 49.70
35 $13,272.64 $ 49.22
tuation? 36 $13,141.33 $ 48.73
37 $13,009.53 $ 48.24
38 $12,877.24 $ 47.75
39 $12,744.46 $ 47.26
40 $12,611.19 $ 46.77
41 $12,477.42 $ 46.27
42 $12,343.16 $ 45.77
43 $12,208.40 $ 45.27
44 $12,073.14 $ 44.77
45 $11,937.38 $ 44.27
46 $11,801.12 $ 43.76
her things that Jordan 47 $11,664.35 $ 43.26
. 48 $11,527.07 $ 42.75

49 $11,389.28 $ 42.24
50 $11,250.99 $ 41.72
ps Jordan avoid 51 $11,112.18 $ 41.21
het to avoid debt and 52 $10,972.85 $ 40.69
e as needed so he 53 $10,833.01 $ 40.17
54 $10,692.65 $ 39.65
55 $10,551.77 $ 39.13
56 $10,410.37 $ 38.61
57 $10,268.44 $ 38.08
58 $10,125.99 $ 37.55
59 $9,983.01 $ 37.02
60 $9,839.50 $ 36.49
61 $9,695.45 $ 35.95
62 $9,550.87 $ 35.42
63 $9,405.76 $ 34.88
64 $9,260.11 $ 34.34
65 $9,113.91 $ 33.80
66 $8,967.18 $ 33.25
67 $8,819.90 $ 32.71
68 $8,672.08 $ 32.16
69 $8,523.70 $ 31.61
70 $8,374.78 $ 31.06
71 $8,225.30 $ 30.50
72 $8,075.27 $ 29.95
73 $7,924.69 $ 29.39
74 $7,773.54 $ 28.83
75 $7,621.84 $ 28.26
 76 $7,469.57 $ 27.70
77 $7,316.74 $ 27.13
78 $7,163.34 $ 26.56
79 $7,009.37 $ 25.99
80 $6,854.83 $ 25.42
81 $6,699.72 $ 24.84
82 $6,544.03 $ 24.27
83 $6,387.77 $ 23.69
. Month 84: Column O, the 84 $6,230.92 $ 23.11
4: Column U, the maximum 85 $6,073.50 $ 22.52
86 $5,915.49 $ 21.94
87 $5,756.89 $ 21.35
88 $5,597.71 $ 20.76
89 $5,437.93 $ 20.17
90 $5,277.57 $ 19.57
91 $5,116.61 $ 18.97
92 $4,955.05 $ 18.37
93 $4,792.89 $ 17.77
94 $4,630.13 $ 17.17
95 $4,466.77 $ 16.56
96 $4,302.80 $ 15.96
97 $4,138.23 $ 15.35
98 $3,973.04 $ 14.73
99 $3,807.24 $ 14.12
100 $3,640.83 $ 13.50
101 $3,473.80 $ 12.88
102 $3,306.15 $ 12.26
103 $3,137.87 $ 11.64
104 $2,968.98 $ 11.01
105 $2,799.46 $ 10.38
106 $2,629.31 $ 9.75
107 $2,458.52 $ 9.12
108 $2,287.11 $ 8.48
109 $2,115.06 $ 7.84
110 $1,942.37 $ 7.20
111 $1,769.04 $ 6.56
112 $1,595.07 $ 5.92
113 $1,420.45 $ 5.27
114 $1,245.19 $ 4.62
115 $1,069.27 $ 3.97
and Column U should 116 $892.70 $ 3.31
117 $715.48 $ 2.65
118 $537.60 $ 1.99
119 $359.07 $ 1.33
120 $179.87 $ 0.67
m Loan Amount Jordan's Maximum Loan Amount
$17,460.00 Loan Amount:
4.45% Loan Interest Rate:
 10 Years to Repay Loan Amount:
$180.53 Monthly Payment:
$21,663.60 Total Payments:
$4,203.60 Total Interest:

$180.53 Payment =
To Principal Ending Balance Month Beginning Balance To Interest
$115.78 $17,344.22 1 $29,952.00 $ 111.07
$116.21 $17,228.00 2 $29,753.38 $ 110.34
$116.64 $17,111.36 3 $29,554.01 $ 109.60
$117.08 $16,994.28 4 $29,353.91 $ 108.85
$117.51 $16,876.77 5 $29,153.07 $ 108.11
$117.95 $16,758.82 6 $28,951.49 $ 107.36
$118.38 $16,640.43 7 $28,749.15 $ 106.61
$118.82 $16,521.61 8 $28,546.07 $ 105.86
$119.26 $16,402.35 9 $28,342.23 $ 105.10
$119.71 $16,282.64 10 $28,137.63 $ 104.34
$120.15 $16,162.49 11 $27,932.28 $ 103.58
$120.60 $16,041.89 12 $27,726.17 $ 102.82
$121.04 $15,920.85 13 $27,519.29 $ 102.05
$121.49 $15,799.36 14 $27,311.64 $ 101.28
$121.94 $15,677.41 15 $27,103.23 $ 100.51
$122.40 $15,555.02 16 $26,894.04 $ 99.73
$122.85 $15,432.17 17 $26,684.07 $ 98.95
$123.30 $15,308.87 18 $26,473.33 $ 98.17
$123.76 $15,185.10 19 $26,261.81 $ 97.39
$124.22 $15,060.88 20 $26,049.50 $ 96.60
$124.68 $14,936.20 21 $25,836.40 $ 95.81
$125.14 $14,811.06 22 $25,622.52 $ 95.02
$125.61 $14,685.45 23 $25,407.84 $ 94.22
$126.07 $14,559.38 24 $25,192.36 $ 93.42
$126.54 $14,432.84 25 $24,976.09 $ 92.62
$127.01 $14,305.83 26 $24,759.01 $ 91.81
$127.48 $14,178.34 27 $24,541.13 $ 91.01
$127.95 $14,050.39 28 $24,322.44 $ 90.20
$128.43 $13,921.96 29 $24,102.94 $ 89.38
$128.90 $13,793.06 30 $23,882.62 $ 88.56
$129.38 $13,663.67 31 $23,661.49 $ 87.74
$129.86 $13,533.81 32 $23,439.54 $ 86.92
$130.34 $13,403.47 33 $23,216.76 $ 86.10
$130.83 $13,272.64 34 $22,993.16 $ 85.27
$131.31 $13,141.33 35 $22,768.73 $ 84.43
$131.80 $13,009.53 36 $22,543.47 $ 83.60
$132.29 $12,877.24 37 $22,317.37 $ 82.76
$132.78 $12,744.46 38 $22,090.44 $ 81.92
$133.27 $12,611.19 39 $21,862.66 $ 81.07
$133.77 $12,477.42 40 $21,634.04 $ 80.23
$134.26 $12,343.16 41 $21,404.57 $ 79.38
$134.76 $12,208.40 42 $21,174.25 $ 78.52
$135.26 $12,073.14 43 $20,943.07 $ 77.66
$135.76 $11,937.38 44 $20,711.04 $ 76.80
$136.26 $11,801.12 45 $20,478.15 $ 75.94
$136.77 $11,664.35 46 $20,244.39 $ 75.07
$137.28 $11,527.07 47 $20,009.77 $ 74.20
$137.79 $11,389.28 48 $19,774.27 $ 73.33

$138.30 $11,250.99 49 $19,537.91 $ 72.45

$138.81 $11,112.18 50 $19,300.66 $ 71.57
$139.32 $10,972.85 51 $19,062.54 $ 70.69
$139.84 $10,833.01 52 $18,823.53 $ 69.80
$140.36 $10,692.65 53 $18,583.64 $ 68.91
$140.88 $10,551.77 54 $18,342.86 $ 68.02
$141.40 $10,410.37 55 $18,101.18 $ 67.13
$141.93 $10,268.44 56 $17,858.61 $ 66.23
$142.45 $10,125.99 57 $17,615.14 $ 65.32
$142.98 $9,983.01 58 $17,370.77 $ 64.42
$143.51 $9,839.50 59 $17,125.49 $ 63.51
$144.04 $9,695.45 60 $16,879.30 $ 62.59
$144.58 $9,550.87 61 $16,632.20 $ 61.68
$145.11 $9,405.76 62 $16,384.18 $ 60.76
$145.65 $9,260.11 63 $16,135.24 $ 59.83
$146.19 $9,113.91 64 $15,885.38 $ 58.91
$146.73 $8,967.18 65 $15,634.59 $ 57.98
$147.28 $8,819.90 66 $15,382.87 $ 57.04
$147.83 $8,672.08 67 $15,130.22 $ 56.11
$148.37 $8,523.70 68 $14,876.63 $ 55.17
$148.92 $8,374.78 69 $14,622.10 $ 54.22
$149.48 $8,225.30 70 $14,366.63 $ 53.28
$150.03 $8,075.27 71 $14,110.21 $ 52.33
$150.59 $7,924.69 72 $13,852.84 $ 51.37
$151.14 $7,773.54 73 $13,594.51 $ 50.41
$151.71 $7,621.84 74 $13,335.23 $ 49.45
$152.27 $7,469.57 75 $13,074.99 $ 48.49
$152.83 $7,316.74 76 $12,813.78 $ 47.52
$153.40 $7,163.34 77 $12,551.60 $ 46.55
$153.97 $7,009.37 78 $12,288.45 $ 45.57
$154.54 $6,854.83 79 $12,024.32 $ 44.59
$155.11 $6,699.72 80 $11,759.21 $ 43.61
$155.69 $6,544.03 81 $11,493.12 $ 42.62
$156.26 $6,387.77 82 $11,226.05 $ 41.63
$156.84 $6,230.92 83 $10,957.98 $ 40.64
$157.43 $6,073.50 84 $10,688.92 $ 39.64
$158.01 $5,915.49 85 $10,418.86 $ 38.64
$158.60 $5,756.89 86 $10,147.80 $ 37.63
$159.18 $5,597.71 87 $9,875.74 $ 36.62
$159.77 $5,437.93 88 $9,602.66 $ 35.61
$160.37 $5,277.57 89 $9,328.58 $ 34.59
$160.96 $5,116.61 90 $9,053.47 $ 33.57
$161.56 $4,955.05 91 $8,777.35 $ 32.55
$162.16 $4,792.89 92 $8,500.20 $ 31.52
$162.76 $4,630.13 93 $8,222.03 $ 30.49
$163.36 $4,466.77 94 $7,942.82 $ 29.45
$163.97 $4,302.80 95 $7,662.58 $ 28.42
$164.58 $4,138.23 96 $7,381.30 $ 27.37
$165.19 $3,973.04 97 $7,098.98 $ 26.33
$165.80 $3,807.24 98 $6,815.61 $ 25.27
$166.41 $3,640.83 99 $6,531.18 $ 24.22
$167.03 $3,473.80 100 $6,245.71 $ 23.16
$167.65 $3,306.15 101 $5,959.17 $ 22.10
$168.27 $3,137.87 102 $5,671.57 $ 21.03
$168.90 $2,968.98 103 $5,382.91 $ 19.96
$169.52 $2,799.46 104 $5,093.18 $ 18.89
$170.15 $2,629.31 105 $4,802.37 $ 17.81
$170.78 $2,458.52 106 $4,510.48 $ 16.73
$171.42 $2,287.11 107 $4,217.51 $ 15.64
$172.05 $2,115.06 108 $3,923.45 $ 14.55
$172.69 $1,942.37 109 $3,628.31 $ 13.45
$173.33 $1,769.04 110 $3,332.06 $ 12.36
$173.97 $1,595.07 111 $3,034.72 $ 11.25
$174.62 $1,420.45 112 $2,736.28 $ 10.15
$175.26 $1,245.19 113 $2,436.73 $ 9.04
$175.91 $1,069.27 114 $2,136.07 $ 7.92
$176.57 $892.70 115 $1,834.30 $ 6.80
$177.22 $715.48 116 $1,531.40 $ 5.68
$177.88 $537.60 117 $1,227.39 $ 4.55
$178.54 $359.07 118 $922.24 $ 3.42
$179.20 $179.87 119 $615.96 $ 2.28
$179.87 $0.00 120 $308.55 $ 1.14
m Loan Amount
$29,952.00
4.45%
 10
$309.70
$37,164.00
$7,212.00

$309.70
To Principal Ending Balance
$198.62 $29,753.38
$199.36 $29,554.01
$200.10 $29,353.91
$200.84 $29,153.07
$201.59 $28,951.49
$202.33 $28,749.15
$203.08 $28,546.07
$203.84 $28,342.23
$204.59 $28,137.63
$205.35 $27,932.28
$206.11 $27,726.17
$206.88 $27,519.29
$207.65 $27,311.64
$208.42 $27,103.23
$209.19 $26,894.04
$209.96 $26,684.07
$210.74 $26,473.33
$211.52 $26,261.81
$212.31 $26,049.50
$213.10 $25,836.40
$213.89 $25,622.52
$214.68 $25,407.84
$215.48 $25,192.36
$216.27 $24,976.09
$217.08 $24,759.01
$217.88 $24,541.13
$218.69 $24,322.44
$219.50 $24,102.94
$220.31 $23,882.62
$221.13 $23,661.49
$221.95 $23,439.54
$222.77 $23,216.76
$223.60 $22,993.16
$224.43 $22,768.73
$225.26 $22,543.47
$226.10 $22,317.37
$226.94 $22,090.44
$227.78 $21,862.66
$228.62 $21,634.04
$229.47 $21,404.57
$230.32 $21,174.25
$231.18 $20,943.07
$232.03 $20,711.04
$232.89 $20,478.15
$233.76 $20,244.39
$234.62 $20,009.77
$235.49 $19,774.27
$236.37 $19,537.91

$237.24 $19,300.66
$238.12 $19,062.54
$239.01 $18,823.53
$239.89 $18,583.64
$240.78 $18,342.86
$241.67 $18,101.18
$242.57 $17,858.61
$243.47 $17,615.14
$244.37 $17,370.77
$245.28 $17,125.49
$246.19 $16,879.30
$247.10 $16,632.20
$248.02 $16,384.18
$248.94 $16,135.24
$249.86 $15,885.38
$250.79 $15,634.59
$251.72 $15,382.87
$252.65 $15,130.22
$253.59 $14,876.63
$254.53 $14,622.10
$255.47 $14,366.63
$256.42 $14,110.21
$257.37 $13,852.84
$258.33 $13,594.51
$259.28 $13,335.23
$260.24 $13,074.99
$261.21 $12,813.78
$262.18 $12,551.60
$263.15 $12,288.45
$264.13 $12,024.32
$265.11 $11,759.21
$266.09 $11,493.12
$267.08 $11,226.05
$268.07 $10,957.98
$269.06 $10,688.92
$270.06 $10,418.86
$271.06 $10,147.80
$272.06 $9,875.74
$273.07 $9,602.66
$274.09 $9,328.58
$275.10 $9,053.47
$276.12 $8,777.35
$277.15 $8,500.20
$278.17 $8,222.03
$279.21 $7,942.82
$280.24 $7,662.58
$281.28 $7,381.30
$282.32 $7,098.98
$283.37 $6,815.61
$284.42 $6,531.18
$285.48 $6,245.71
$286.54 $5,959.17
$287.60 $5,671.57
$288.66 $5,382.91
$289.73 $5,093.18
$290.81 $4,802.37
$291.89 $4,510.48
$292.97 $4,217.51
$294.06 $3,923.45
$295.15 $3,628.31
$296.24 $3,332.06
$297.34 $3,034.72
$298.44 $2,736.28
$299.55 $2,436.73
$300.66 $2,136.07
$301.78 $1,834.30
$302.89 $1,531.40
$304.02 $1,227.39
$305.14 $922.24
$306.28 $615.96
$307.41 $308.55
$308.55 $0.00
Monthly Payment 10-Year
Borrowing the full amount allowed $309.70
Borrowing just what is needed $180.53
Total Payment 10-Year
Borrowing the full amount allowed $37,164.00

Borrowing just what is needed $21,663.60

Total Interest 10-Year

Borrowing the full amount allowed $7,212.00

Borrowing just what is needed $4,203.60