Example of Savings with Consolidation:
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Loan Amount
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$80,000.00
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$125,000.00
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$150,000.00
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Your estimated payment before consolidation
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$ 921.00 |
$ 1,151.00
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$ 1,438.00 |
$ 1,726.00 |
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Your estimated payment after consolidation
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$ 526.00 |
$ 657.00
|
$ 821.00 |
$ 985.00 |
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Monthly Savings
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$ 395.00 |
$ 494.00
|
$ 617.00 |
$ 741.00 |
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Monthly Savings @ 5% for ten years**
|
$61,336.00 |
$ 76,709.00 |
$ 95,809.00 |
$115,064.00 |
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Monthly Savings @ 10% for 10 years**
|
$80,914.00 |
$101,193.00 |
$126,389.00 |
$151,790.13 |
* Actual savings may vary. Extending the repayment period on loans will add to the total amount of interest paid over the term of the loans. Calculations for the before consolidation payments are based upon the standard 10-year term with a 6.80% rate. Consolidation calculations are based on a 30-year term with a 6.875% consolidation rate.
** Monthly deposits for 10 years with interest rate compounded monthly with an initial starting balance of $ 0.
You can use these savings, money not spent on loan repayment for more important purposes such as paying off more expensive debt, starting your savings/investment plan sooner or adding more to your savings/investment plan and being less stressed and in control of your daily living expenses thus reducing the potential of misuse of credit cards.
Without consolidation a $125,000 in Stafford student loans requires a monthly payment of $1,438.00 per month for ten years. With consolidation, the level payment option requires monthly payments of $821.00 per month for 30 years. The monthly savings is $617.00. Placing this savings into an interest bearing account at a 5.5% or 10.0% interest rate compounded quarterly would yield a final balance of $98,416.18 and $126,389.35 respectively after ten
|
Loan Management at a Glance $125,000
|
|
Without Consolidation
10-Year @6.80% |
|
With Consolidation
30-Year @6.875% |
Consolidation With
Discounts
3-Year @6.625%
27-Years @5.625% |
| Monthly Payments |
$ 1,438.50 |
|
$821.16 |
$800.80/725.06 |
| Total Interest |
$ 47,620.50 |
|
$170,768.32 |
$138,748.41 |
| Total Payments |
$ 172,620.00 |
|
$295,617.60 |
$263,748.24 |
| Salary Needed |
$ 215,775.62 |
|
$123,174.15 |
$108,670.66 |
|
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|
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Dental School Debt - $125,000 |
|
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Without Consolidation – 10-Years:
- Monthly Payments @ 6.8% - $1,438.50
- Yearly Total Payments - $17,262.00
- Total Interest Paid - $47,620.50
- Total Payments - $172,620.00
Salary Needed To Support Debt/Manageable Payments* - $215,775.62
* These calculations are based on the financial aid industry recommendation that student loan debt not exceed 8 percent of gross earnings. The calculations do not take into consideration a high amount of credit card or other debt.
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Dental School Debt - $125,000 |
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With Consolidation – 30-Years:
- Monthly Payments @ 6.875% - $821.16
- Yearly Total Payments - $9,853.92
- Total Interest Paid - $170,768.32
- Total Payments - $295,617.60
3 -Years Monthly Payments @6.625% w/0.25% Discount $800.80
27 -Years Monthly Payments @5.625% w/1.25% Discount $751.36
- Yearly Total (Avg.) Payments - $8,791.61
- Total Interest Paid - $138,748.24
- Total Payments - $263,748.41
- Salary for Manageable Payments $108,670.66
* These calculations are based on the financial aid industry recommendation that student loan debt not exceed 8 percent of gross earnings. The calculations do not take into consideration a high amount of credit card or other debt.
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Dental School Debt - $125,000 |
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Without Consolidation -10 Years
Without Consolidation -10 Years
- Salary Needed to Support Debt* - $215,775.62
With Consolidation - 30- Years:
- Salary Needed to Support Debt* - $123,174.15
With Consolidation w/ 1.25% Discount Applied - 30- Years:
- Salary for Manageable Payments -$108,670.66
* These calculations are based on the financial aid industry recommendation that student loan debt not exceed 8 percent of gross earnings. The calculations do not take into consideration a high amount of credit card or other debt.
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