Education Funding and Job Expenses

Education Funding and Job Expenses Instructions

You will be completing the Education Funding and Job Expenses Excel^® worksheets for this assignment. These Excel^® worksheets are part of the Week 1 Personal Financial Workbook. If you look across the bottom of Excel^® workbook you will see three tabs. You will be using two of those for this week’s work.

Part 1: Education Funding Worksheet

Here are the steps involved and resources to help you find amounts for the Education Funding Worksheet:

The first four questions refer to how you paid tuition and fees this year. If you have your financial aid award letter or a financial plan you created with your advisor, you can refer back to that. Or you can create an educational financial plan by completing Questions 1, 2, and 3 in the Tuition and Fees Calculator at www.phoenix.edu/financialplanassignment.

If you are unsure about the amount you borrowed this year, log in to www.nslds.ed.gov to see all your federal student loans. You can also contact your University of Phoenix finance advisor.

After you input responses to Questions 1-4, you may see an Unfunded Tuition Cost in Line 5. If there is an unfunded amount, you will need to look into other funding options to make up the shortfall and enter those on the sheet. If you see an Excess Funding, you might consider reducing any loans to fund only tuition and fees.

Questions 6 through 11 focus on student loans, borrowing, and repayment. These questions are included to get you thinking about other options to pay for college that do not need to be repaid. Research dollars might be available to you. Think about what you learned from class materials and discussions, and be sure to review the iGrad student loan material.

Question 6 is about your expected total student loan debt – not just this year. Your goal should be to borrow no more than what you expect your starting salary to be once you leave school.

For Question 7, you can look up typical starting salaries for your chosen career at the U.S. Bureau of Labor Statistics website (www.bls.gov). Or go to phoenix.edu and check out the Phoenix Career Guidance System.

If your total student loan debt will be more than your anticipated starting annual salary, that may signal trouble when you start repaying your loans. Here are some logical steps you can take to make sure you graduate with manageable student loan debt:

• Commit to spending at least five hours each month looking for and applying for scholarships for the coming year.
• Start saving a small amount now in a separate savings account. Head back to the cash flow statement from Week 1 and see if you can make a few spending tweaks to free up more money for tuition. Could you find $50 more each month to put toward tuition? Every little bit helps to get you on the path to saving.

For Question 9 list at least two options for reducing the amount of student loans you use to pay for college. If you do not use loans, what would you suggest to another student?

The challenge is to make sure that you borrow an amount that is manageable. Even good debt can turn bad if you have trouble keeping up with the repayment. If you have additional questions, or would like to discuss options for or changes in your current financial aid plan, contact a University of Phoenix finance advisor.

Questions 10 and 11 focus on loan repayment. The standard monthly payment will pay your total debt off within ten years, and the payment will remain the same each month during that period. A general rule of thumb based on recent interest rates is that your payment will be $10 for every $1,000 you borrow. For example, if you borrow $10,000, your payment will be approximately $100. To get a more definitive amount, you can log in to this site to use the Repayment Estimator and it will use your NSLDS loan data: https://studentaid.ed.gov/repay-loans/understand/plans.

For Question 11, review the iGrad student loan material to learn more about different repayment plans available for federal student loans. These plans can extend the repayment period and/or lower your monthly payment based on certain criteria.

For Question 12, reflect on what you have done this week. In this assignment you considered your payment plan to complete your chosen program, and then considered what repayment would be. You also researched estimated salary for your chosen career. Put this all together to answer this question about your return on educational investment. How long might it take you to recoup the money spent on tuition?

Part 2: Job Expenses Worksheet

When choosing a job we often consider salary as a key factor in that decision. Salary is very important, yet there are other considerations you read about this week. In this assignment you will assign dollar amounts to those considerations to see how it might impact your future budget.

To complete this assignment you will use the Week 1 Personal Monthly Budget Worksheet you submitted. If you received assignment feedback already, make the suggested changes so you start with the most accurate baseline. You will see that the totals from the work you did on the Personal Monthly Budget have carried over to the Week 3 Job Expenses Worksheet.

Think about your chosen career and the job you expect to be in after graduation. Consider how your monthly expenses may change if you were working at that job. Would you need to add to your work wardrobe? Would you be eating more meals away from home? Would your commute be longer or more expensive? You may not know the exact amount since you do not know where the job is or what the culture will be, but you should think about the possibilities.

We have listed some common expenses someone may face when starting a job. Enter the amount you expect to pay and how frequently you would pay that amount (select frequency from the drop-down).

• If you do not think you will have any expenses for this category, enter a zero (0).
• If you have an expense but do not see a line for it, enter it in one of the rows labeled Additional Items.
• For any expenses, but especially the insurance payments, if you think you will be paying less than you currently do, enter the amount as a negative. For example, if you now pay $200 a month for health insurance, and you expect some subsidy at a new job you might enter “-100” to show your savings.

The Monthly Payment is the result of a calculation. If it seems incorrect, edit the $ Amount or Frequency. Again, these costs will be estimates.

In the next section you will see some calculations Excel has done using the data you entered. Your estimated standard monthly student loan payment will be listed. Then your estimated gross (pre-tax) monthly salary is calculated using the annual salary you entered in the Education Funding work.

In Row 25, you see the estimated monthly take-home salary your first year after graduation. This field is calculated using your estimated monthly take-home salary and deducting 19.2% taxes (federal, state, FICA).

Row 26 then shows the estimated increase (or decrease) to your monthly take-home pay. In the next section you will see the totals from the monthly expenses you entered in the Personal Monthly Budget, and your current monthly excess or deficit.

In the following yellow section you will see the Estimated Future Monthly Excess or Deficit. This figure represents your current financial situation, plus any estimated salary increase (or decrease), less any additional job expenses and future student loan payment.

The last step is to answer the question about how this activity affects your thinking about future jobs. Would you ask more questions about benefits? Will you try to negotiate a higher salary or better benefits? What does it all mean to you?

 

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