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Student Loan Cost Analysis

Decent Essays
My Loan Costs for College: I have calculated the total costs of my student loans, including interest, for a 30-year payment. That is currently the best option because I have not yet received any news from the various scholarships that I applied to. For Howard University, I might take around $97,040 for a four-year loan and pay back $180,344 over 30 years. For Hawaii Pacific University, I could take about $107,028 for a six-year loan and pay back $198,906 over 30 years. For Humboldt State, I might take $110,892 for a six-year loan and pay $206,087 over 30 years (Student). Howard University is still the best option for loans. These costs will likely go down when I receive scholarships. My goal is receive scholarships to pay for most or all of college.

Monthly Payment: Taking interest into consideration for a loan repayment of 30 years, my monthly repayments for Howard University, Hawaii Pacific, and Humboldt State would be between $500 and $600 a month. Howard’s monthly repayment would be $500.96, Hawaii’s monthly repayment would be $552.52, and Humboldt’s monthly repayment would be $572.46. Obviously, these amounts are completely ridiculous. Howard’s estimated monthly repayment is the cheapest at $500.92, but that is still way too expensive to be paying every month for 30 years.
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After calculating my monthly budget for when I start my career, I can see that life will be hard and I will be poor. If I cut down my spending for housing, food, auto, insurance, entertainment/recreation, savings, medical/dental expenses, investments and miscellaneous stuff by about 2-3% each, I can still have some money to spare. I can bring down my monthly expense from $2,479.17 to $2,335.54. That means that I will have an extra $143.63 to save for emergencies. Even so, I will still have be very frugal with my spending and use my resources wisely. I will have to buy everything cheap in order to
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