3-3: Student Loans - A

Financial Algebra Second Edition

Slide 2

To turn in - A: Use the following graph to answers the questions on the next slide.

Financial Algebra Second Edition

1) Which range of student loan debt contains the MOST borrowers?
How many borrowers are in that range?

2) How many total student loan borrowers owe more than $100,000?

3) The average starting salary for a college graduate is approximately
$55,000. What percentage of student loan borrowers have LESS than
$60,000 in debt?

4) Think ahead to the year 2030. Predict one way you think this graph
might change and explain your reasoning.

5) A substantial fraction of borrowers owe less than $5,000. Who do
you think is represented in this debt range and why might the number
of borrowers in this range be so large?

Financial Algebra Second Edition

1) Out-of-state schools are often significantly more expensive than in-state schools.
Do you feel like attending school out-of-state is worth the extra expense? Explain why or why not.

2) How does the salary you will earn after graduating college factor into how much you should take out in student loans?

3) In general, do you think taking out student loans is a good thing or a bad thing?
Explain your reasoning.

4) When taking out student loans, what do you call the signed agreement to pay them back?

To turn in - B: Responsible Borrowing

Student loans can be scary, but if you are a responsible borrower you will be able to use them to your advantage to help pay for a college education. Watch this video on how you can be a responsible borrower. Then, answer the following questions.

Financial Algebra Second Edition

When planning how you’re going to pay for college, it’s important to know that there is a limit to how much you can borrow using federal student loans. Another critical piece of information to know is the interest rates associated with the types of loans you might take out. Review the sections of the articles linked here to learn about the limits and interest rates associated with federal student loans. Then, answer the questions.

1. Imagine you’re looking at attending a college whose tuition is $10,000 per year.
Would you be able to pay your tuition only using federal student loans your first year?

2. Describe one downside to borrowing the maximum allowed amount of federal student loans.

3. Briefly describe the interest rates associated with the different types of federal
student loans.
4.
4. At what point are you no longer eligible to receive Direct Subsidized loans?

To turn in - C: ARTICLE: Federal Loan Limits, Interest Rates, and Fees
ARTICLE: What Are the Interest Rates for Federal Student Loans?

Financial Algebra Second Edition

To turn in - D:
EDPUZZLE:
You already know that student loans should only be considered once you’ve exhausted opportunities for grants, scholarships, and work study. But if the time comes when you need a student loan, what kinds are available and which of
them should you choose? Watch the following videos and answer the questions within the EdPuzzle itself.
There are 3 videos (assignments).

The Different Types of Federal Student Loans
Paying for College with Student Loans.
Student Loans Subsidized vs. Unsubsidized