Ella is considering getting a $3,000 student loan to attend a veterinary assistant training program. She currently lives at home with her parents and works at JCPenney in the local mall. Her monthly gross income is $750. Her employer deducts $145 each month for all applicable taxes. She also has a small credit card with an $875 balance and a $40 minimum payment each month. If she gets the student loan, she will need to pay an additional $120 per month toward that expense. Calculate Ella's DEBT PAYMENTS to INCOME ratio under the following scenarios: . . Without the student loan (current debt only): With the student loan (current debt plus student loan): . With only the student loan: . Should she take out the student loan? If so, under what conditions? If Ella finishes her program, she will increase her earning power by at least $10,000 per year post-graduation. She plans on staying at home for 3 more years in order to 'bank' her new income and save for a house downpayment. If she actually adheres to her plan, how much will she accumulate by the end of her 3-year time limit, assuming she can earn 5% on her savings? (Hint: We know her 'current behavior' and she is contributing to her funds in increments over 3 years. Use the TVM calculator to find the value of her savings.)