The Economics of College Araceli Segura Period 10/12 1/28/15

The Importance of a Degree Ages year college degree: -- $40,000 High school graduates: $25,000 Low income: 30% High income: 29% Since 1970 Median: 11 to 15 percent Poorest: 6 to 10 percent

The Importance of a Degree High school graduates: Bachelors Degree: 56% Associates Degree: 21% End of 2013, student debt was more than 1 trillion. Annual Returns -Workers with a bachelors degree in engineering: 21% -Workers with a bachelors degree in education: 9%

College Costs Luxurious campuses Tuition and fees: State schools: 72% Nonprofit Private Institutions: 29% Colleges devoting Financial Aid to students who aren’t in need Tuition increases due to state budget cuts

College Costs

Advice Job on campus FASFA Maintain grades and DON’T skip classes Don’t take out loans if it is not necessary Apply for scholarships and grants

Mistakes Not studying, skipping classes Taking on too many classes Misusing loans and/or financial aid. Not focusing on deadlines

Graduation and Retention Rates

My 3 schools & my loans Year1 st choice Santa Monica and transfer to Dominguez Hills while living at home for both 2 nd choice Santa Monica and transfer to Northridge while living at home 3 rd choice Santa Monica and transfer to Northridge while living on campus 1st000 2nd000 3rd000 4th5,0985,75616,632 5th5,0985,75616,632 6th5,0985,75616,632 TOTAL LOANS15,29417,26849,896

Total amount loaned vs. Total payments

Monthly Payments

Different repayment plans Loan Payment Chart Amount Borrowed Loan term Interest Rate 4.66 Monthly Payments Total PaymentsTotal Interest $15,294 10$159.69$19,162$3,868 15$118.25$21,285$5,991 20$98.08$23,540$8,248

My Career Starting Salary (10 th %): 34,750$ Average Salary (50 th %)” 65,930$

My Career I want to major in Mathematics and become a math teacher. I look forward to teaching kids in high school. The reason I want to do this is because I love the concept of math and I love solving the problems. Additionally, I love that I will be helping kids grow and learn. I feel that watching students exceed in something you are teaching them is such a wonderful feeling. The demand for this job is expected to grow due to how many opening there are for teaching positions.

Can I afford it? Gross Income:$65, Tax$14, CategoryRangeSuggested PercentageAnnual AmountMonthly Amount Net Spendable: 1 $51,425.40$4, Housing: %3% $1, $ Food: %12% $6, $ Auto: %8% $4, $ Insurance:5-12%5% $2, $ Ent/ Rec:2-11%7% $3, $ Clothing:3-7%3% $1, $ Savings:3-10%5% $2, $ Med/Dental:4-8%6% $3, $ Misc:1-6%2% $1, $85.71 Investments:3-10%9% $4, $ Loans0-30%10% $5, $ Totals 35, ,906.96

Is it worth it? My Career Salary as a Teacher x 42 (Years working) 65,930 x 42 = 2,769,060 Loan Payments paid over 10 years $19,162 Return on investment 2,769,060 – 19,162 – 1,363,000 = $1,386,898

Lifetime Earnings

ROI Chart

Cost Benefit Analysis Pros Santa Monica College to CSUDH while at home Santa Monica College to CSUN while at home Santa Monica College to CSUN while on campus -Cheapest option. Only $15,294 annually. -Will be saving money! - Wouldn’t have to drive everyday -I will gain responsibility such as cooking for myself, cleaning the house, etc. -Less distractions. While in dorms you have friends and parties, at home you don’t. - Won’t have to worry about monthly rent payments - Location is only about 20/25 min. away from my home. - Will increase my social life. I will meet more people and create more friendships

Cost Benefit Analysis Cons Santa Monica College to CSUDH while at home Santa Monica College to CSUN while at home Santa Monica College to CSUN while on campus -Lack independency due to living by parents rules -Driving to school everyday/paying for gas. (about an hour from my house) -Less privacy. It is more likely that I will have a roommate so therefore, I will not have much personal space --Harder to be involved in school activities due because not all time will be spend on campus -More likely to slack off on school assignments due to parties, etc. -Most expensive. Costs $49,896 annually

So… Cheapest option (SM to CSUDH) Lifetime earnings is higher Monthly payments? Go to school to become a teacher

Works Cited

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