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  • General Education Investment Spreadsheet

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    prem101
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    This document provides instructions for analyzing the costs and returns of an investment in higher education. It includes fields to input amounts borrowed for subsidized, unsubsidized, and private loans each year. It also includes fields to input interest rates for each loan and expected yearly salary. Calculations are then shown for monthly loan payments over repayment periods, expected after-tax monthly income, and remaining monthly income after loan payments. The goal is to estimate the financial impact of education loans and determine if the investment is worthwhile based on expected future earnings.

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    Education Investment

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    This document provides instructions for analyzing the costs and returns of an investment in higher education. It includes fields to input amounts borrowed for subsidized, unsubsidized, and private loans each year. It also includes fields to input interest rates for each loan and expected yearly salary. Calculations are then shown for monthly loan payments over repayment periods, expected after-tax monthly income, and remaining monthly income after loan payments. The goal is to estimate the financial impact of education loans and determine if the investment is worthwhile based on expected future earnings.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    25 views5 pages

    General Education Investment Spreadsheet

    Uploaded by

    prem101
    This document provides instructions for analyzing the costs and returns of an investment in higher education. It includes fields to input amounts borrowed for subsidized, unsubsidized, and private loans each year. It also includes fields to input interest rates for each loan and expected yearly salary. Calculations are then shown for monthly loan payments over repayment periods, expected after-tax monthly income, and remaining monthly income after loan payments. The goal is to estimate the financial impact of education loans and determine if the investment is worthwhile based on expected future earnings.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 5

    Analyzing Your Investment in Education

    Instructions
    1. Input the amount borrowed in subsidized, unsubsidized, and private loans according to the relevant year (Cells C10-C18, E10-E18, G10-G18)
    2. Input the yearly interest rate corresponding to the loan
    3. Select the number of years to pay back each loan (Cells B26 - F26)
    4. Input your expected yearly salary (Cell D32)
    5. Input your expected tax rate (Cell C34)
    Private Yearly Rate Subsidized
    Year 1 2011-2012 $0.00 5.00% $3,500.00
    Summer 1 summer 2012 $0.00 5.00% $0.00
    Year 2 2012-2013 $0.00 5.00% $3,500.00
    Summer 2 summer 2013 $0.00 5.00% $0.00
    Year 3 2013-2014 $0.00 5.00% $5,500.00
    Summer 3 summer 2014 $0.00 5.00% $0.00
    Year 4 2014-2015 $0.00 5.00% $5,500.00
    Summer 4 summer 2015 $0.00 5.00% $0.00
    Year 5 2015-2016 $0.00 5.00% $5,500.00
    TOTAL PRIVATE TOTAL SUBSIDIZED
    $0.00 $23,500.00
    GRAND TOTAL LOAN AMOUNT $48,500.00
    Subsidized Loan Interest (Annual) 3.40% Unsubsidized Loan Interest (annual) 6.80% Private Loan Interest (annual)
    sub interest rate by month 0.002833333 unsub interest rate by month 0.005666667 dad interest rate by month
    Years to Pay Loan 25 Years to Pay Loan 25 Years to Pay Loan
    months to pay loan 300 months to pay loan 300 months to pay loan
    Monthly Payment $116.39 Monthly Payment $173.52 Monthly Payment
    Total Monthly Payment $289.91
    Expected Entry Level Salary $60,000
    Monthly Salary $5,000
    Income Tax 25.00%
    Monthly Salary After Tax $3,750.00
    Net monthly income before loan payment $3,750.00
    Net monthly income after loan payment $3,460.09
    Analyzing Your Investment in Education
    1. Input the amount borrowed in subsidized, unsubsidized, and private loans according to the relevant year (Cells C10-C18, E10-E18, G10-G18)
    2. Input the yearly interest rate corresponding to the loan
    3. Select the number of years to pay back each loan (Cells B26 - F26)
    Yearly Rate Unsubsidized Yearly Rate
    3.40% $2,000.00 6.80%
    3.40% $0.00 6.80%
    3.40% $2,000.00 6.80%
    3.40% $0.00 6.80%
    3.40% $7,000.00 6.80%
    3.40% $0.00 6.80%
    3.40% $7,000.00 6.80%
    3.40% $0.00 6.80%
    3.40% $7,000.00 6.80%
    TOTAL UNSUBSIDIZED
    $25,000.00
    5.00%
    0.004166667
    25
    300
    $0.00
    BREAKDOWN
    16,000 fall 2012 Fidi
    3,000 fall 2012
    16,000 spring 2013
    3,000 spring 2013
    7,000 summer 2013
    3,700 Fall 2013
    1,000 spring 2014

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