Sunday, July 21, 2013

Lets see how affordable college REALLY is.

Let me preface this saying, on that website I'm on.. well. I see this a lot. I've knocked down a couple 'anons' with my math.. and frankly, it takes me about 5 seconds to do the math. (It takes a lot longer to type it out than think it)

This is a bare bones budget sample, and although I get its clogged, messy and hard to follow.. its real.

more posting this for my benefit than yours, just so I can come back to this once I find a reader friendly way of explaining this via the internet.

Kentucky, COMMUNITY college for instate residents costs on average 3800$ per semester, not including sign up fees, book fees, deposits, or basic living. Kentucky has a lower cost of living.

Maximum federal student loan for each fiscal year (for a freshman) is 9500$
Maximum pell grant is 5500$
Lets pretend that Susie gets the max based on her minimum wage job and EFC with 1 child

9500+5500 pell grant 15k.

$15000-  7600 tution (fall and spring semester)= 7400
7600- 1000$ (books) 6600

6600- deposits, fees (id cards, application fees, etc) 200$ 6400
transportation costs (lets assume susie lives in a rural area, which is common here in KY..) 
Gas 250$ a month, car insurance 70$ per month (on her beater car) repairs 40$ a month (oil changes, tire funds, etc) so 360$ a month assuming she owns her car outright
so 6400- 360= 6040
Uniforms, school supplies, etc 500$ = 5540
So that leaves susie with a debt of 9500$ to uncle sam, with 5540 left over, at an interest rate of 6.8% which tacks on 3,618$ during the average 10 year repayment term (interest starts while you are in school and lets assume susie is in school for 4 years for a BA)
So, lets assume Susie some how magically finds a way to work a full 40 hours while going to school full time and raising one child alone.
Working 40 hours a week at minimum wage (7.25 federal) minus federal and local tax would net susie 580$ gross pay or 494.79 bi weekly after taxes, before health insurance premiums (which at mcdonalds start for families t 20$ a week)

So, susie makes 989.58 take home pay, before insurance each month.
With gross income accounted for and a rent at 700$ (since all housing assistnace is CLOSED) plus utilities at about 200$ a month (combined) susie would qualify for 181$ in food stamps, but no medicaid (since she is offered it via employment)
So, 989.58-900 rent and utilities 89.58 
89.58-150$ for extra food (yeah yeah say its enough stamps all you want.. its not)=-60.41

So lets take that 60.41 susie is short each month for basics, not including daycare (since daycare assistance is closed too) and times that by 12.
So the 5540 left over each year from student loans- 724.92=4815.08

Now lets average in day care costs, lets say at 100$ a week, to be on the cheap side
4815.08-5200= -384.92

Just for the shit of you saying well susie could get daycare assistance (you cant, the waitlist is a mile long since they provide it free to the welfare recips they force to 'volunteer') well, lets say she pays 25$ a week.
So 4815.08-1200=3615.08

Now diapers (if susies kiddo is younger) lets say 75$ a month.

Lets not forget if little susies child needs clothes and other necessities, not to mention copays and deductibles.
What about toiletries, HBA, laundry fees, etc?
Well lets say thats about 1000$ a year. 
Now lets say susie is some how isolated from the inflation bubble and this goes on in this exact formula for the 4 years she is in school.
Susie will have :

Loan Balance:$38,000.00
Adjusted Loan Balance:$38,000.00
Loan Interest Rate:6.80%
Loan Fees:0.00%
Loan Term:10 years
Minimum Payment:$0.00
Enrollment Status:Graduating Soon
Degree Program:Bachelor's Degree
Total Years in College:4 years
Average Debt per Year:$9,500.00

Monthly Loan Payment:$437.31
Number of Payments:120

Cumulative Payments:$52,476.39
Total Interest Paid:$14,476.39
So, 14k in interest.
Not including if susie ends up in the ER on her bare insurance.. or her car blows up (or gets wrecked).. or she needs a laptop, or internet, or her car gets broken into.. 

Its BARELY affordable. If you are not working your damn ass off, you CANNOT make it. The fun part here, is who is going to watch susies kid while she is in school AND at work full time?

Oh.. and you dont want to get me started on a post graduation employment salary, regular bills, plus a student loan payment.
That will make your eyes suck back even further.