Precalculus With Jennifer Snead
Consumer Awareness
For this project, each person was required to pick one financial topic to study for a week. Then, based off of the topic you chose, you were required to create and solve five sample problems. These problems were required to contain content that we have studied this year. For this project, I studied banks loans, and interest rates. I researched the nation's most successful banks and their interest rates on auto loans for new cars. Then, I researched what small actions consumers can take to avoid extra fees in order to out smart their banks.
College Tuition Project - The Price of College
In this project, we explored the growth of college tuition over the past ten years. We we required to explore the tuition of one four year college of our choice as well as a community college or an in-state college. Then, we had to, based on the growth of tuition over the past ten years, estimate the tuition for the years we would be in college. These calculations can be seen in the spreadsheet below. I chose to evaluate the tuition of Vanderbilt University as well as Denver University. During this project, we were also required to evaluate and choose a repayment plan. There are four basic repayment plans: the Standard Fixed, the Standard Graduated, the Extended Fixed, and the Extended Graduated. I found the tuition for the years I would attend these colleges and chose a payment plan to repay the tuition of college. Through this project, I discovered the reality of college tuition. Going to college can have a huge impact on your family and how they stand financially. Working and applying for scholarships can truly make a difference in your life and your future debts.
The Price of College Reflection
1. What is the name, location, type of colleges (public, private, in-state, out-of-state) that you have chosen to analyze? (Include 4-year and 2-year institutions)
For this project, I chose to analyze Vanderbilt University in Nashville, Tennessee. It is a private four-year university. I also chose to analyze Denver University for the in-state college choice. Denver University is a four-year university located in Denver.
2. Using your linear equations that were calculated using Excel, what was your correlation coefficient and what does this number represent?
A correlation coefficient is a number usually represented by ‘r’; the closer the correlation coefficient value is to one, the more linear the equation is. The correlation coefficient of my equations for Denver University was 0.99309 for the total education cost and 0.98743 for the tuition of one year. For Vanderbilt, the correlation coefficient for the total education cost was .9716 and the correlation coefficient for the one-year tuition was .97235. These numbers represent that the increase of the tuition at both colleges were nearly linear and very consistent.
3. What is the average percent increase of tuition over the past ten years? Do you think this value directly relates to what type of institution you plan on attending (private or public college)?
The one-year tuition at Vanderbilt University has been increasing at an average of 5.1% over the past ten years. On the other hand, the one-year tuition at Denver University has been increasing at 3% for the past ten years. Both of these schools are non-profit four-year universities so these percentages don’t change my perspective on which type of college I would like to go to.
4. What is your anticipated average for tuition percent increase of your undergraduate career?
If I were at Vanderbilt from 2016-2020, the average increase of one-year tuition between years of attendance would be 3.2%. If I were at Denver University from 2016-202, the anticipated average for tuition percent increase would be 2.5%.
5. Between what two academic years, did the tuition increase the most? Is this value significantly larger than the other academic years? If so, what factors could have contributed to this? (Think specifically factors that could have affected your institution.)
The price of one-year tuition at Vanderbilt University between the 2004-2005 school year and the 2005-2006 school year increased 11.6%. This could have been caused by an economic downfall.
6. What would the total tuition cost for an undergraduate degree at each 4-year institution cost?
At Vanderbilt University the total tuition for an undergraduate degree would cost $199,716.20 and the tuition for an undergraduate degree at Denver University costs $173,378.20.
7. What is your tentative total tuition cost for an undergraduate degree? Please specify which route you are planning on taking either a 4-year institution or a 2-year community college plus a 2-year university.
I plan on going to a 4-year institution. Currently, my tentative total tuition cost for an undergraduate degree would be $199,726.20. This cost would be for the private, non-profit 4-year Vanderbilt University. Denver University is also a 4-year institution and the total predicted tuition for DU is $173,378.20.
8. The majority of students borrow money from the federal government to pay for their college tuition. In return, the student will pay the money back 6-months after he/ she graduates from college with an included interest rate. Currently the interest rate is 6.8% for undergraduate loans if borrowing federal money. Calculate the total amount of money you will need to repay the government. After you have calculated this amount, you will need to decide which repayment plan would be best for you and why? The link to the repayment plans can be found here. Dependent on the type of repayment plan you select, you will use the repayment plan you would like to use.
(From this question you need to identify your total tuition owed to government with the online calculator, type of repayment plan and why, and monthly loan payment)
· Please include all data collected in your two-page reflection.
If I attended Vanderbilt and had to ask for a loan for the total education cost for four years, I would have to borrow $269,488. After the 25 allotted years for the Extended Graduated Repayment Plan, I would have paid the government $604,312.04. I would choose this repayment plan because despite it having the largest amount of interest ($334,824.04), it has the most reasonable monthly payments.
9. Answer either part A or part B depending on your situation.
a. If you attended a community college for the first two years of college and then transferred to a university in the same state, how much money would you save for the principle of the loan and in the long term for the amount of interest you would save? Would this amount persuade you to attending a community college for the first two years? Is this worth it to you?
b. If you decided to compare two four-year colleges, which college was the overall least expensive? How much money overall would you save if you decided to attend the least expensive college? (Please specify difference in principle, interest, and overall money paid back to government.) Would this amount persuade you to attended this specific four-year college, even if it wasn't your top choice? Is this worth it to you?
In the end, Denver University was less expensive than Vanderbilt University. The difference between the tuitions of these two colleges was $40,293.40. As far as tuition goes, that evens out to say that Denver University was about $10,050 cheaper per year than Vanderbilt University. With the Standard Graduated Plan, DU has $230,412.72 less interest than Vanderbilt University( assuming I choose Extended Graduated Plan for Vanderbilt and Fixed Graduated for DU). Under the circumstances that I was paying for college by myself, I would choose Denver University over the prestigious Vanderbilt University for the sake of money saving in the long run. Even though I lose the ability to say that I went to a “top 30” college, I could still get a good education at Denver University.
10. What other factors could contribute to your tentative total tuition being more expensive than expected?
Another factor that could contribute to my tentative total tuition being more expensive than expected could be that the amount of people who aren’t paying back their loans in full is increasing. This results in the college having to ask for more money in tuition in order to pay their professors and pay for other expenses.
11. Overall what have you learned from this exploration of college tuition? What mathematical topics do you feel confident that you have mastered? What information regarding your prospect college have you gathered? Has your research effected your decision on applying to your prospective school?
This project has helped me to see the reality of college expenses. College is a lot more expensive than I thought it was and this project has opened my mind to attending other schools that aren’t as prestigious as Ivy Leagues, but are cheaper and still offer a quality education. I have mastered the linear regression and linear equations through this project. Through this project I have discovered that although Vanderbilt is a very desirable school, it is very expensive and may not be worth paying more than $200,000. It has also helped me think about what cost for education is reasonable.
Works Cited
"Admissions & Student Aid." Interactive Tool: Tuition Over Time, 1999-2010. The Chronicle Of Higher Education, n.d. Web. 02 Oct. 2012. <http://chronicle.com/article/Interactive-Tool-Tuition-Over/125043/>.
"Admissions & Student Aid." Interactive Tool: Tuition Over Time, 1999-2010. N.p., n.d. Web. 02 Oct. 2012. <http://chronicle.com/article/Interactive-Tool-Tuition-Over/125043/>.
"CDS G." CDS G. Vanderbilt University, n.d. Web. 02 Oct. 2012. <http://virg.vanderbilt.edu/virgweb/CDSG.aspx?year=2010>.
"Office of Financial Aid." Costs for 2012-2013Â |Â Â |Â Vanderbilt University. N.p., n.d. Web. 02 Oct. 2012. <http://www.vanderbilt.edu/financialaid/costs.php>.
"Use Our Repayment Comparison Calculator to Quickly Calculate Estimated Monthly Payment Amounts under Several Repayment Plans." Repayment Comparison Calculator. N.p., n.d. Web. 02 Oct. 2012. <http://studentaid.ed.gov/repay-loans/understand/plans/standard/comparison-calculator>.
"Vanderbilt University." ReVU: Quick Facts about Vanderbilt. N.p., n.d. Web. 02 Oct. 2012. <http://www.vanderbilt.edu/info/facts/>.
For this project, I chose to analyze Vanderbilt University in Nashville, Tennessee. It is a private four-year university. I also chose to analyze Denver University for the in-state college choice. Denver University is a four-year university located in Denver.
2. Using your linear equations that were calculated using Excel, what was your correlation coefficient and what does this number represent?
A correlation coefficient is a number usually represented by ‘r’; the closer the correlation coefficient value is to one, the more linear the equation is. The correlation coefficient of my equations for Denver University was 0.99309 for the total education cost and 0.98743 for the tuition of one year. For Vanderbilt, the correlation coefficient for the total education cost was .9716 and the correlation coefficient for the one-year tuition was .97235. These numbers represent that the increase of the tuition at both colleges were nearly linear and very consistent.
3. What is the average percent increase of tuition over the past ten years? Do you think this value directly relates to what type of institution you plan on attending (private or public college)?
The one-year tuition at Vanderbilt University has been increasing at an average of 5.1% over the past ten years. On the other hand, the one-year tuition at Denver University has been increasing at 3% for the past ten years. Both of these schools are non-profit four-year universities so these percentages don’t change my perspective on which type of college I would like to go to.
4. What is your anticipated average for tuition percent increase of your undergraduate career?
If I were at Vanderbilt from 2016-2020, the average increase of one-year tuition between years of attendance would be 3.2%. If I were at Denver University from 2016-202, the anticipated average for tuition percent increase would be 2.5%.
5. Between what two academic years, did the tuition increase the most? Is this value significantly larger than the other academic years? If so, what factors could have contributed to this? (Think specifically factors that could have affected your institution.)
The price of one-year tuition at Vanderbilt University between the 2004-2005 school year and the 2005-2006 school year increased 11.6%. This could have been caused by an economic downfall.
6. What would the total tuition cost for an undergraduate degree at each 4-year institution cost?
At Vanderbilt University the total tuition for an undergraduate degree would cost $199,716.20 and the tuition for an undergraduate degree at Denver University costs $173,378.20.
7. What is your tentative total tuition cost for an undergraduate degree? Please specify which route you are planning on taking either a 4-year institution or a 2-year community college plus a 2-year university.
I plan on going to a 4-year institution. Currently, my tentative total tuition cost for an undergraduate degree would be $199,726.20. This cost would be for the private, non-profit 4-year Vanderbilt University. Denver University is also a 4-year institution and the total predicted tuition for DU is $173,378.20.
8. The majority of students borrow money from the federal government to pay for their college tuition. In return, the student will pay the money back 6-months after he/ she graduates from college with an included interest rate. Currently the interest rate is 6.8% for undergraduate loans if borrowing federal money. Calculate the total amount of money you will need to repay the government. After you have calculated this amount, you will need to decide which repayment plan would be best for you and why? The link to the repayment plans can be found here. Dependent on the type of repayment plan you select, you will use the repayment plan you would like to use.
(From this question you need to identify your total tuition owed to government with the online calculator, type of repayment plan and why, and monthly loan payment)
· Please include all data collected in your two-page reflection.
If I attended Vanderbilt and had to ask for a loan for the total education cost for four years, I would have to borrow $269,488. After the 25 allotted years for the Extended Graduated Repayment Plan, I would have paid the government $604,312.04. I would choose this repayment plan because despite it having the largest amount of interest ($334,824.04), it has the most reasonable monthly payments.
9. Answer either part A or part B depending on your situation.
a. If you attended a community college for the first two years of college and then transferred to a university in the same state, how much money would you save for the principle of the loan and in the long term for the amount of interest you would save? Would this amount persuade you to attending a community college for the first two years? Is this worth it to you?
b. If you decided to compare two four-year colleges, which college was the overall least expensive? How much money overall would you save if you decided to attend the least expensive college? (Please specify difference in principle, interest, and overall money paid back to government.) Would this amount persuade you to attended this specific four-year college, even if it wasn't your top choice? Is this worth it to you?
In the end, Denver University was less expensive than Vanderbilt University. The difference between the tuitions of these two colleges was $40,293.40. As far as tuition goes, that evens out to say that Denver University was about $10,050 cheaper per year than Vanderbilt University. With the Standard Graduated Plan, DU has $230,412.72 less interest than Vanderbilt University( assuming I choose Extended Graduated Plan for Vanderbilt and Fixed Graduated for DU). Under the circumstances that I was paying for college by myself, I would choose Denver University over the prestigious Vanderbilt University for the sake of money saving in the long run. Even though I lose the ability to say that I went to a “top 30” college, I could still get a good education at Denver University.
10. What other factors could contribute to your tentative total tuition being more expensive than expected?
Another factor that could contribute to my tentative total tuition being more expensive than expected could be that the amount of people who aren’t paying back their loans in full is increasing. This results in the college having to ask for more money in tuition in order to pay their professors and pay for other expenses.
11. Overall what have you learned from this exploration of college tuition? What mathematical topics do you feel confident that you have mastered? What information regarding your prospect college have you gathered? Has your research effected your decision on applying to your prospective school?
This project has helped me to see the reality of college expenses. College is a lot more expensive than I thought it was and this project has opened my mind to attending other schools that aren’t as prestigious as Ivy Leagues, but are cheaper and still offer a quality education. I have mastered the linear regression and linear equations through this project. Through this project I have discovered that although Vanderbilt is a very desirable school, it is very expensive and may not be worth paying more than $200,000. It has also helped me think about what cost for education is reasonable.
Works Cited
"Admissions & Student Aid." Interactive Tool: Tuition Over Time, 1999-2010. The Chronicle Of Higher Education, n.d. Web. 02 Oct. 2012. <http://chronicle.com/article/Interactive-Tool-Tuition-Over/125043/>.
"Admissions & Student Aid." Interactive Tool: Tuition Over Time, 1999-2010. N.p., n.d. Web. 02 Oct. 2012. <http://chronicle.com/article/Interactive-Tool-Tuition-Over/125043/>.
"CDS G." CDS G. Vanderbilt University, n.d. Web. 02 Oct. 2012. <http://virg.vanderbilt.edu/virgweb/CDSG.aspx?year=2010>.
"Office of Financial Aid." Costs for 2012-2013Â |Â Â |Â Vanderbilt University. N.p., n.d. Web. 02 Oct. 2012. <http://www.vanderbilt.edu/financialaid/costs.php>.
"Use Our Repayment Comparison Calculator to Quickly Calculate Estimated Monthly Payment Amounts under Several Repayment Plans." Repayment Comparison Calculator. N.p., n.d. Web. 02 Oct. 2012. <http://studentaid.ed.gov/repay-loans/understand/plans/standard/comparison-calculator>.
"Vanderbilt University." ReVU: Quick Facts about Vanderbilt. N.p., n.d. Web. 02 Oct. 2012. <http://www.vanderbilt.edu/info/facts/>.
college_spreadsheet_sarah_lawton_copy.xlsx | |
File Size: | 80 kb |
File Type: | xlsx |