Sheet 1: Instructions

	
	
	

		
The Pennsylvania State University 
		


	
	

		
MoneyCounts: A Financial Literacy Series
		

 
	
	
	

		


		
	

		


		
	

		


		
	

		
Getting Student Loans
		
	

		
What kind of loans to borrow and how much?
		


	
	

		


		


	
	

		


		


	
	

		
This worksheet can be done in 4 steps
		


	
	

		


		


	
	

		
1.  Project your future income and calculate your monthly net take home salary
		


	
	

		
2.  Project your loans after graduation and calculate your monthly loan payment 
		


	
	

		
3.  Project your spending based on your life style and value system and calculate your expenses
		


	
	

		
4.  Analyze your budget results and make plans for a successful financial future!
		


	
	

		


		


	
	

		


		


	
	

		
Complete the cells highlighted in Blue
		


	
	

		
Do not Write over cells highlighted in Yellow
		


	
	

		


		


	
	

		


		


	
	

		


		


	
	

		
Learning Objectives:
		


	
	

		


		


	
	

		
1. Type of loans available to college students
		


	
	

		
2.  Relationship between future income and current loan borrowing
		


	
	

		
3.  Factoring student loan payments into future budgets
		


	



Sheet 2: Project your future income

	
	
	
	

		


		
The Pennsylvania State University 
		


	
	

		


		
MoneyCounts: A Financial Literacy Series
		

 
	
	
	

		


		


		
	

		


		


		
	

		


		
Getting Student Loans
		
	

		


		
What kind of loans to borrow and how much?
		


	
	

		


		


		


	
	

		


		


		


	
	

		
Step ONE
		
How much money will I be making after graduation?
		


	
	

		


		


		


	
	

		


		
mySkills myFuture, a CareerOneStop website
		


	
	

		


		


		


	
	

		


		


		


	
	

		


		
Check out your job market
		


	
	

		


		
1.  login the above link
		


	
	

		


		
2. List your future occupation 
		


	
	

		


		
3. Find out your potential gross income
		


	
	

		


		
4. Calculate your net income per year ( assume 30% tax bracket)
		
 $-   
	
	

		


		
5. Calculate your monthly net Income
		
 $-   
	



Sheet 3: List your Loans

	
	
	
	

		


		


		

 
		
		
	

		


		
The Pennsylvania State University 
		
	

		


		
MoneyCounts: A Financial Literacy Series
		
	

		


		


		
	

		


		


		
	

		


		
Getting Student Loans
		


		


	
	

		


		
What kind of loans to borrow and how much?
		


		


	
	

		


		


		


		


	
	

		


		


		


		


	
	

		


		


		


		


	
	

		
Step TWO
		
List your Student Loans by type and amount by time of graduation
		
Amount $$$$
		


	
	

		


		


		


		


	
	

		


		
1.  Perkins Loan  
		


		


	
	

		


		
2.  Subsidized Loan
		


		


	
	

		


		
3.  Unsubsidized Loan
		


		


	
	

		


		
4.  Institutional Loan
		


		


	
	

		


		
5.  Private Loan
		


		


	
	

		


		
6
		


		


	
	

		


		
7
		


		


	
	

		


		
8
		


		


	
	

		


		
9
		


		


	
	

		


		
10
		


		


	
	

		


		


		


		


	
	

		


		
Total Loans
		
 $-   
		


	
	

		


		


		


		


	
	

		


		
Bankrate
		


		


	
	

		


		


		


		


	
	

		


		


		


		


	
	

		


		
Using this loan calculator find out monthly payment and total interest on the loan
		


		


	
	

		


		
Use 4.22% as interest rate and 120 months for term of payments
		


		


	
	

		


		
Loan amount
		
 $-   
		


	
	

		


		
Monthly payment  
		


		


	
	

		


		
Term of Loan (# of payments, 10 years or 120 months)
		
120
		


	
	

		


		
Interest Rate
		
4.2%
		


	
	

		


		
Interest Paid over the loan
		


		


	
	

		


		
Total paid (Principal and Interest)
		
 $-   
		


	
	

		


		


		


		


	
	

		


		


		


		


	
	

		


		


		


		


	
	

		
TIP:
		
Your total student loan amounts should not exceed your first year net income salary
		


		


	
	

		


		
Your Yearly net income 
		
 $-   
		


	
	

		


		
Your total student loan is 
		
 $-   
		


	
	

		


		


		


		


	
	

		


		
Over/Under
		
 $-