University of Illinois at Urbana Champaign can have an annual in-state tuition cost of $31, 061/year including room and board; excluding books and meal plan.
That equates to $124,244 for a 4-year undergraduate degree for a student who has a family income of $75,000 - $110,000. (1)
Assuming that the student receives a total of $22,000 ($5,500/year) in grants over the course of the college career will leave a balance of $102,244 to cover from other sources.
If the student and family are left to borrow this money and can qualify at an interest rate of 6.8% with a repayment plan of 10 years scheduled to start within 1 year of graduating (no delays) the monthly payment will be $1,176.63.
The total interest paid over those 10 years will be $38,951.14 making the cumulative payments $141,195.14. (2)
If the student and family are unable to qualify and/or afford those monthly payments, extending the loan term could help but it will cost you.
If the student can reduce the financial obligation by being awarded scholarships, also known as free money, the future of the student’s career will look much more rewarding.
How would you like to earn a living after college?
Record your decision.
How much will your college education costs? Record it.
Cost of 4 year tuition: ________________________________
- Visit http://www.bankrate.com/calculators/college-planning/loan-calculator.aspx
- Enter the balance amount.
- Enter 10, 20 or 30 years.
- Enter 6 for the Interest rate per year.
- Report your monthly payment.
Monthly Payments: __________________________________