1. Recommendations for Susan Smith Compiled by Samantha Wilson Senior Financial Advisor Future Planners, Inc

2. Problem and Plan Post-secondary and career decisions can be overwhelming for high school students Many students are unwitting of the long-term financial implications of these decisions Consider the impact of factors like interest, time and principal on loan payments and pay off amounts Consider Use the loan calculator found in the link above to investigate the impact of these variables Also, consider the money-saving impacts of adding extra payments per year or one-time payments to your loan

3. Problem and Plan Wise decisions are best made when considering: Relevant interests Educational requirements Financial implications Potential Income Potential Expenditures for Education Professional advice

4. Career Option 1 Magazine Editor Dominant Interest Category: Enterprising, Secondary Interest Categories: Social and Artistic Necessary Skill Strengths: Verbal, Moderate Skills Needed: Math, Science and Technology

5. Career Option 2 Human Resources Manager Dominant Interest Category: Social, Secondary Interest Categories: Enterprising Necessary Skill Strengths: Verbal, Moderate Skills Needed: Math, Science and Technology

6. Magazine Editor Required Education Four year degree in English, Journalism or Liberal Arts Career Planning Annual Median Income $50,800

7. Human Resources Manager Required Education Four year degree and masters degree in human resources management, administration or business management becomeopedia Annual Median Income $96,130 Bureau of Labor Statistics

8. Post-Secondary Education Option 1 Yearly = $57,000 Cost of Attendance Cost of four year degree $57,000 × 4 = $228,000 Boston College Take a look

9. Post-Secondary Education Option 2 Undergraduate Yearly =$22,796 Graduate Yearly = $22,874 Cost of Attendance Cost of Bachelor’s Degree and Master’s Degree $22,796 × 4 = $91,184 $22,874 × 2 = $45,748 Total = $136,932 University of Maine Take a Look

10. Financial Contribution Family Contribution Annual Family Contribution of $6,000 Scholarship Contribution Annual Scholarship Contribution of $4,000 Combined Annual Contribution $10,000 annually

11. Adjusted Cost Option 1 Cost of four year degree $57,000 × 4 = $228,000 Combined financial contribution over four years $10,000 × 4 = $40,000 Adjusted cost of four year degree $228,000 - $40,000 = $188,000

12. Adjusted Cost Option 2 Cost of Bachelor’s Degree and Master’s Degree $22,796 × 4 = $91,184 $22,874 × 2 = $45,748 Total = $136,932 Combined financial contribution over four years $10,000 × 4 = $40,000 Adjusted cost of four year degree $136,932 - $40,000 = $96,932

13. Projected Monthly Debt to Income Ratio Option 1 Loan End Amount (over a 20 year term with a 3.4% interest rate)3.4% interest rate Monthly Loan Payment Monthly Gross Income Monthly Debt-to-Income Ratio

14. Projected Monthly Debt to Income Ratio Option 2 Loan End Amount (over a 20 year term with a 3.4% interest rate)3.4% interest rate Monthly Loan Payment Monthly Gross Income Monthly Debt-to-Income Ratio

15. Recommendation As a result of analyzing and comparing both career and post- secondary education paths favored by Ms. Smith, I recommend that Ms. Smith attend the University of Maine and pursue a career in human resources management. From a financial standpoint, Ms. Smith will have a much lower debt burden from attending University of Maine, despite the fact that she will attend graduate school there as well. Working as a human resources manager will also generate a higher gross income, reducing her debt-to- income ratio. Should Ms. Smith decide to pursue a career as a magazine editor, I recommend that she attend a post-secondary institution that is more affordable than Boston College.

16. Works Cited