Warm-Up 2/12/16. If you make $8.25/hour, work an average of 25 hours per week, and lose 20% to taxes, what is your annual NET pay?

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1 Warm-Up 2/12/16 If you make $8.25/hour, work an average of 25 hours per week, and lose 20% to taxes, what is your annual NET pay? If you are paid a salary of $40,900 and lose 20% to taxes, what is your annual NET pay?

2 I Can t Afford to Go to College

3 Should I work for a semester or two to save up cash?

4 To get a loan or not that is the question $8.25/hour 25/week Age 18 4 years of 19 college. 20 Annual Net What if I get $4,000 in student loans each year of college? Salary contract. $40, weeks 14 weeks unpaid TOTAL: Estimated median household income in 2013: $49,289 Nevada.html

5 To get a loan or not that is the question $8.25/hour 25/week Salary contract. $40, weeks 14 weeks unpaid Age Annual 18 4 years of $8, college. $8, $8, $8, $32, $32, $32, $32, $32, $32,720 $230,640 TOTAL:

6 Total student loan amount = Current student loan rates: 4.29% Pay $ per month for 24 months. Total interest = $ Total Amount Repaid = Total income for these 10 years AFTER paying off student loans.

7 To get a loan or not that is the question $8.25/hour 40/week $8.25/hour 25/week Salary contract. $40, weeks 14 weeks unpaid Annual Net 20 4 years of $8, college. $8, $8, $8, $32, $32, $32, $32,720 TOTAL: What if I want to work so I can pay cash for college? By working full time, you will make $ more every year that can be saved for college. This means that for these 2 years of work, you will have saved an extra $ for college. Assuming college costs don t increase you will have to come up with $4,000 per year, you will still need to borrow $ to pay for college.

8 To get a loan or not that is the question $8.25/hour 40/week $8.25/hour 25/week Salary contract. $40, weeks 14 weeks unpaid Annual Net 18 $13, $13, years of $8, college. $8, $8, $8, $32, $32, $32, $32,720 $192,656 TOTAL: What if I want to work so I can pay cash for college? Making $5,148 more every year. Save an extra $10,296 for college. Only need to borrow $5704 to pay for college. (Assuming scholarships and costs all the same as 2 years ago.)

9 Total student loan amount = Current student loan rates: 4.29% Pay $ per month for 24 months. Total interest = $ Total Amount Repaid = Total student loan amount = Current student loan rates: 4.29% Pay $ per month for 24 months. Total interest = $ Total Amount Repaid = Total income for these 10 years AFTER paying off student loans. Total income for these 10 years AFTER paying off student loans. Which life path results in higher pay over the next decade of your life?

10 To get a loan or not that is the question Annual 18 4 years of $8, college. $8, $8, $8, $32, $32, $32, $32, $32, $32,720 $230,640 TOTAL: Pay off loans quick, cuts total earnings down to $213, Annual 18 $13, $13, years of $8, college. $8, $8, $8, $32, $32, $32, $32,720 $192,656 TOTAL: Pay off loans quick, cuts total earnings down to $186, That s $27, LESS than if you had gotten student loans!

11 I can earn just as much without having to go to college.

12 I can t afford to go to college $15/hour 40/week $480/week Annual Annual $24, years of $8,580 $24, college. $8,580 $24, $8,580 $24, $8,580 $16,640 more per year!!! 22 $40, $40, $40, $40, $40, $40,900 $8.25/hour 25/week $165/week

13 I can t afford to go to college $15/hour 40/week $480/week $20/hour 40/week $640/week Annual Annual $24, years of $8,580 $24, college. $8,580 $24, $8,580 $24, $8,580 $33, $40,000 $33, $40,000 $33, $40,000 $33, $40,000 $33, $40,000 $33, $40,000 TOTAL: $299,520 $274,320 TOTAL: $6,720 more per year! $8.25/hour 25/week $165/week Salary contract. $50,000 2 weeks PTO $961/week

14 I can t afford to go to college $15/hour 40/week $480/week $20/hour 40/week $640/week Annual Annual $24, years of $8,580 $24, college. $8,580 $24, $8,580 $24, $8,580 $33, $64,000 $33, $64,000 $33, $64,000 $33, $64,000 $33, $64,000 $33, $64,000 TOTAL: $299,520 $418,320 TOTAL: $30,720 more per year!!! $8.25/hour 25/week $165/week Salary contract. $80,000 2 weeks PTO $1,231/week

15 I can t afford to go to college $15/hour 40/week $480/week $20/hour 40/week $640/week Annual Annual $24, years of $8,580 $24, college. $8,580 $24, $8,580 $24, $8,580 $33, $32,720 $33, $32,720 $33, $32,720 $33, $32,720 $33, $32,720 $33, $32,720 TOTAL: $299,520 $230,640 TOTAL: $560 LESS per year! $8.25/hour 25/week $165/week Salary contract. $40, weeks 14 weeks unpaid $861/week

16 Most entry level jobs don t $15/hour

17 I can t afford to go to college $8.25/hour 40/week $264/week $13.25/hour 40/week $424/week Annual Annual $13, years of $8,580 $13, college. $8,580 $13, $8,580 $13, $8,580 $22, $32,720 $22, $32,720 $22, $32,720 $22, $32,720 $22, $32,720 $22, $32,720 TOTAL: $187,416 $230,640 TOTAL: $8.25/hour 25/week $165/week Salary contract. $40, weeks 14 weeks unpaid $861/week $10,636 LESS per year even with!

18 What else isn t being accounted for?

19 Salary jobs come with BENEFITS. Health insurance coverage 401(k) matching PTO Lower risk of injury potentially career ending Lower health risks Less competition for the job Higher job security

20 Salary jobs come with BENEFITS. Last year s pay scale for 1 st year teacher shows that in addition to salary, $16,937 in benefits. These would all come out of your own pocket if your job doesn t have benefits.

21 Is there any way I can get my student loans forgiven?

22 Obama Student Loan Forgiveness Program aka William D. Ford Direct Loan Program: Standard Repayment: Graduated Repayment: Payments start lower than Standard, and gradually increase over time. Contingent Repayment: Based Repayment: Pay as You Earn (PAYE): Limit your monthly loan payments to 10-15% of your monthly discretionary income. After years of monthly payments, loan balance is forgiven.

23 Public Service Loan Forgiveness After 10 years or 120 payments on your student loans, loan balance is forgiven. Requirements: Student loans must be Direct student loans. You must work full-time for a government agency, a taxexempt non-profit or a non-tax-exempt non-profit that provides the following services: Emergency management Military service Public safety or law enforcement Public health, education, or library services Early childhood education Public interest law services Public service for those with disabilities and the elderly..

24 Public Service Loan Forgiveness All 120 payments must be on-time. (Not early or lump-sum.) Must be enrolled in ICR, IBR, or PAYE plan. Must be a full-time employee for the 10 years of payments.

25 Teacher Loan Forgiveness Have $5,000 - $17,500 of student loan debt forgiven. Requirements: Work 5 consecutive years full-time at a low-income school/title 1 school (School must be on Federal list when you begin teaching there.) If you teach secondary math, science, or elementary special ed. you are eligible for up to $17,500 of forgiveness. All other teachers only get up to $5,000 forgiven. Have a degree in education directly related to your teaching position.

26 Perkins Loan Cancellation & Discharge Perkins loans are only granted to students in exceptional financial need. A % can be forgiven every year you work in public service careers such as: Peace Corps Teacher Military Nurse or medical technician Law Enforcement Head Start Child or Family Services Professional provider of early intervention services. Eventually, 100% of your Perkins loans can be forgiven.

27 The RISKS: Congress votes to change forgiveness programs before you receive forgiveness. You work at the wrong place. You hate your career after 1-2 years. Paperwork problems: Turned in late Missing signature Documentation problems East Tech vs. East Career & Tech vs. East Career & Technical Academy

28 The easiest solution: DON T BORROW MORE THAN YOU CAN PAY BACK QUICKLY! If you won t be able to pay it back without loan forgiveness you probably SHOULDN T DO IT!