ASSIGNMENT+9,+11.06.09

Using the new November 2009 WSJ Classroom Newspaper or delicious.com/kathy39420, tag: hwreadings, read "Student Debt Surges" on page 13 and answer the following:


 * STARTING WITH THIS POST, I WILL BE SHARING YOUR ANSWERS WITH THE CLASS AND WE WILL DISCUSS THE COMMENTS.** **IN ADDITION, PLEASE RESPOND TO AT LEAST ONE OTHER PERSON'S POST.****..DISCUSSIONS WILL BE ON MONDAYS FOLLOWING THE DUE DATE...SO THIS POST WILL BE DISCUSSED ON MONDAY, NOV. 9**

Students are borrowing more money for college than ever before--with today's average debt of $23,186. This increase in student borrowing can have long-term effects as many young professionals have to delay milestones, such as getting married, buying a home and starting a family.

1. Compared to the rate of inflation, how fast are college tuition costs increasing? 2. Why is it more difficult now to pay for college? 3. If you needed to start repaying a student loan six months after you graduated, how would you fell about being "forced" to choose your job or apartment (or live at home) based on your ability to repay the loan? How would you feel if loan repayments continued to play a big role in both your living situation and job choices for five or ten years after college? How would you feel if loan repayments played a big role in determining whether you got married and had ideas. Be prepared to discuss this with the class. 4 How much does it cost you in interest when you or your parents take out a student loan? Go to finaid.com's web site section and choose "calculators" Type in $23,186 as the amount of the loan balance (this is the average amount students owe when they graduate). Type in 5.6% as the interest rate. Type in 6 for 6 months For capitalization frequency, type in quarterly For loan repayment, type in 10 years For minimum payment, type in $50 Click Calculate

USE THIS URL: www.finaidorg/calculators/interestcap.phtml