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?

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?

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: Sum all program costs

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

Step2: Subtract grant from total cost

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

Step3: Analyze loan repayment feasibility

Annual salary: $\$27,000$. Annual loan payment (10-year term): $\frac{\$23,000}{10} = \$2,300$. This is a small portion of annual income, so no difficulty.

Answer:

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