You are on page 1of 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