Question

it is hard to know what all of this is worth, but even if you dont earn more money, doing a job that fits you may make the investment worth it.

questions

tuition and fees $12,000
room and board $8,000
books and supplies $1,000
other expenses $5,000
total cost
grant aid $3,000
net price

miles wants to become a licensed massage therapist. he is looking at enrolling in a nine - month program at the hutterville massage institute. tuition for the program is $12,000. using the net price calculator, he estimates he will spend $8,000 on housing and food, $1,000 on books and supplies, and $5,000 on other expenses.

• what is the total cost of miles program?

$26,000

the hutterville massage institute is accredited, so miles can apply for federal financial aid. he estimates he should get $3,000 in grants.

• after he subtracts his grant aid from the total cost of his program, what is the net price of miless program?

$23,000

miles takes a student loan to pay for the full net price of the program. miles learns from the occupation outlook handbook that the median annual salary of a massage therapist is around $40,000. he talks to some recent graduates from the program, and finds that the starting salary in his area is closer to $27,000.

• assuming he finds a job with a starting salary of $27,000, should miles have difficulties paying off his student loans in ten years or less?

○ yes
○ no

Explanation:

Step1: Calculate total program cost

$\$12,000 + \$8,000 + \$1,000 + \$5,000 = \$26,000$

Step2: Calculate net program price

$\$26,000 - \$3,000 = \$23,000$

Step3: Evaluate loan repayment feasibility

Annual salary: $\$27,000$. A common guideline is that student loan payments should be ≤ 10-15% of gross income. 10% of $\$27,000$ is $\$2,700$ annually, or $\$225$ monthly. A $\$23,000$ loan over 10 years at a standard student loan rate (e.g., 5%) would have monthly payments of $\frac{\$23,000 \times 0.05/12 \times (1+0.05/12)^{120}}{(1+0.05/12)^{120}-1} \approx \$243$, which is close to the 10% threshold, but even at the full 15% guideline ($\$337.50$ monthly), it is manageable. Additionally, $\$23,000$ over 10 years is $\$2,300$ annually, which is less than 10% of $\$27,000$.

Answer:

1. $\$26,000$
2. $\$23,000$
3. No