Question

Repaying Student Loans= Based on the new information you learned, share 2 specific goals you will set for yourself related to how you will tackle repayment of a student loan in the future. Setting goals for repayment can be short term or long term. Describe at least 1 specific action for each of your goals that you will take to help ensure success. (Student Loans of $9000 at interest rate of 6%, up to 4 years) and (Student Loans of $21,000 at interest rate of 6%, up to 4 years.)

Answer 1

Assuming the student loans to be repaid on monthly

Basis, so the goal for each loan would be to pay off

the maonthly installment without any fail

Formula for loan amortization =
A= [i*P*(1+i)^n]/[(1+i)^n-1]
The details for the two loans are ;	Loan 1	Loan 2
A = periodical installment=	?	?
P=Loan amount =	$                             9,000	$                                     21,000
i= interest rate per period	0.5% per month	0.5% per month
n=total no of payments=	48 months	48 months
A = periodical installment=	=0.5%*9000*1.005^48/(1.005^48-1)	=0.5%*21000*1.005^48/(1.005^48-1)
	$                                211	$                                           493
So the specific goal for plan 1 is to pay off monthly instyallment of $211
So the specific goal for plan 2 is to pay off monthly instyallment of $493
Specific action for Plan 1 , is to reduce entertainment and telephone spend and use
book rent facility instead of buying books to generate a fund that will help in
paying off the installment.
Action for Plan 2, take up part time job in the retiler chain outlet near the college after class
to pile up a fund for the paymnet of the installments.