Scenario

Students pay for their education in a variety of ways. Some pay their tuition and other expenses out-of-pocket. Others receive assistance from their family. Employers sometimes contribute toward a students educational expenses. Some students receive grants or scholarships based on need or merit. Manyif not moststudents, however, find it necessary to take out loans to help pay for all or part of the costs of their college education.

Student loan debt can create a serious burden for new graduates. It is important that students begin preparing themselves to meet the obligation of repaying their loans at the beginning of their college careers rather than waiting until graduation to think about this issue. This project is designed to start you thinking about how you will repay your student loans once you have graduated. You will produce your project in Microsoft PowerPoint and your project should be professional in appearance.

Introduction

Write a brief overview describing the purpose of the project (This project is designed to start you thinking about how you will repay your student loans once you have graduated.).

Hypothesis

Define a hypothesis, which you intend to evaluate throughout your project. This step will help you to stay on track as your project develops, leading you ultimately to your conclusion. When creating your hypothesis, choose one of the following questions:

1) Will your student loan monthly payment fit into your budget?

Will you be able to pay back your loan faster than the standard 10-year repayment plan?

Determine your expected salary after graduation

For this slide, you can use the attached file as a guideline. Find at least two credible sources that provide estimates of starting salaries in your chosen field, preferably in the state where you hope to work. If the two sources provide markedly different salaries, conduct additional research until you find reasonably close agreements 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. 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.