College Research Natalie Youssef Equation of Slope: y=mx+b Cost of Tuition for Bowdoin: y= 1,006.66x + 34,947.

34,947.33334 Points Used: (1, 30,944) (10, 45,004) = M $1,006.66

45,004= 1,006.666 (10) + b

45,004= 10,066.666+ b

b 34,947.33334

Cost of Tuition and Fees for Bowdoin: y= 1535.555x + 30,090.444 = 1535.555 (10) + b Points Used: (1, 31,626) (10, 45,446) = M $1535.555 = 15,355.555+ b b 30,090.444

Cost of Tuition with Brown University: y= 1,823.555x + 27,376.444 = 1823.555 (10) + b Points Used: (1, 29,200) (10,45,612) = M $1823.555 = 18235.555+ b b 27,376.4444

Cost of Tuition with Fees for Brown University: y=1,225.7777x + 34,358.222 = 1225.7777 (10) + b Points Used: (1, 35,584) (10, 46,616) = M $1225.7777 = 12257.777+ b b 34,358.222

2a. Average percent increase of tuition over the past ten years for Bowdoin College:

Tuition: 4 % Tuition and fees: 4%

2b. Average percent increase of tuition over the past ten years for Brown University: Tuition: 5% Tuition and fees: 4%

I think that this average percentage increase over the last 10 years is very high. The total cost of tuition is a barrier to entry to many students because they cant afford it today and they dont think they will be able to afford it in the future with their high student debt. However, schools do give out scholarships and financial aid to those who qualify, making it more affordable and therefore potentially making the value worthwhile. Others would argue that the value of these private institutions is that they work to ensure that each student meets their personal aspirations and growth objectives on an individual level and the attention and education that they receive creates value that is worth the cost as a result of that direct personalized attention. In any case, it depends on the individual and what they put into their experience as to the value that they will ultimately get from their college experience. 3a. Anticipated average tuition percent increase of my undergraduate career for Bowdoin College: Tuition: 4% Tuition and fees: 3%

3b. Anticipated average tuition percent increase of my undergraduate career for Brown University: Tuition: 3% Tuition and fees: 2%

4a. Between what two years of Bowdoin did the tuition increase the most? Is this value significantly larger than the other academic years? Between 2004 and 2005 the percent increased the most. The percent value is 6% between these time periods. Overall, it is far from the rest of the increases amongst the rest of the years. The percent increases vary from 3-6 percent. b. Between what to years of Brown University did the tuition increase the most? Is this value significantly larger than the other academic years? Between 2013-2014 the tuition increased the most. The percent increased from 4% all the way up to 10%. This was the largest percent increase.

5a. What would the total tuition cost for an undergraduate degree at Bowdoin? Tuition: $204, 061.00 Tuition and fees: $205,644.80

5b. What would the total tuition cost for an undergraduate degree at Brown University? Tuition: $198,226.60 Tuition and fees: $196,371.40

7a. Monthly payment for Bowdoin College: Total Cost/Principle of Loan: $204, 061.00 -Standard fixed: Number of Monthly Payments/Years: 120 months/10 years Interest Rate: 3.86% Monthly Payment: $2,052.47 Total Payback (P & I): $246,296.18 Principle Payment: $204, 061.00 Interest Payment: $42,235.18 -Extended fixed: Number of Monthly Payments/Years: 300 months/ 25 years Interest Rate: 3.86% Monthly: $1,061.40 Total Payback (P & I): $318,419.29 Principle Payment: $204, 061.00 Interest Payment: $114,358.29 -Standard graduated: Number of Monthly Payments/Years: 120 months/ 10 years Interest Rate: 3.86% Monthly: increasing rate
1-2 3-4 5-6 7-8 Period (years) Monthly Payment $1,146.78 $1,509.25 $1,986.29 $2,614.11

9-10

$3,440.34

Total Payback (P & I): $256,721.78 Principle Payment: $204,061.00 Interest Payment: $52,660.78

-Extended graduated: Number of Monthly Payments/Years: 300 months/ 25 years Interest Rate: 3.86% Monthly: increasing rate
1-2 3-4 5-6 7-8 9-10 11-12 13-14 15-16 17-18 19-20 21-22 23-24 25 Period (years) Monthly Payment $656.40 $718.12 $785.64 $859.51 $940.33 $1,028.74 $1,125.47 $1,231.29 $1,347.06 $1,473.71 $1,612.27 $1,763.86 $1,929.70

Total Payback (P & I): $348,153.75 Principle Payment: $204,061.00 Interest Payment: $144,092.75

7b. Monthly payment for Brown University: Total Cost/Principle of Loan: $198,226.60 -Standard fixed: Number of Monthly Payments/Years: 120 months/10 years Interest Rate: 3.86% Monthly Payment: $1,993.79 Total Payback (P & I): $239,254.21

Principle Payment: $198,226.60 Interest Payment: $41,027.61

-Extended fixed: Number of Monthly Payments/Years: 300 months/ 25 years Interest Rate: 3.86% Monthly: $1,031.05 Total Payback (P & I): $309,315.22 Principle Payment: $198,226.60 Interest Payment $111,088.62 -Standard graduated: Number of Monthly Payments/Years: 120 months/ 10 years Interest Rate: 3.86% Monthly: increasing rate
1-2 3-4 5-6 7-8 9-10 Period (years) Monthly Payment $1,113.99 $1,466.10 $1,929.50 $2,539.37 $3,341.97

Total Payback (P & I): $249,381.82 Principle Payment: $ 198,226.60 Interest Payment: $51,155.22

-Extended graduated: Number of Monthly Payments/Years: 300 months/ 25 years Interest Rate: 3.86% Monthly: increasing rate
1-2 3-4 5-6 7-8 9-10 11-12 13-14 Period (years) Monthly Payment $637.63 $697.58 $763.17 $834.93 $913.43 $999.31 $1,093.27

15-16 17-18 19-20 21-22 23-24 25

$1,196.06 $1,308.52 $1,431.55 $1,566.15 $1,713.40 $1,874.50

Total Payback (P & I): $338,201.60 Principle Payment: $198,226.60 Interest Payment: $139,975.00

9. Linear or exponential function for types of repayment plans: Bowdoin College: Standard Fixed Loan: y= -24,629.64x + = -24,629.64 (0) + b Points Used: (1, 246,296.18) (9, 24,629.42) = M $-24,629.64 = 0+ b b

Extended Fixed: y= -12736.8x + 318,419.29 305,682.49= -12736.8 (1) + b Points Used: (1, 305,682.49) (15, 127,367.29) = M $-12736.8 318,419.29= (1) b b 318,419.29

Standard Graduated: y= -25,209.51x + 268,170.89 = -25209.51 (1) + b Points Used: (1,242,961.38) (9, 41,285.30) = M -25209.51 268170.89= (1) b b 268170.89

Extended Graduated: y= -10974.26571x + 351,251.2157 Brown University: Standard Fixed Loan: y= -23,924.4x + 23,934.61=-23,924.4 (9) + b Points Used: (1, 215,329.81) (9, 23,934.61) = M $-23,924.4 =b b = -10974.26571 (1) + b Points Used: (1, 340,276.95) (15, 186,637.23) = M $-10974.26571 351,251.2157= b b 351,251.2157

Extended Fixed: y= -12,372x +309,315.22 296,943.22= -12,372 (1) + b Points Used: (1, 296,943.22) (20, 61,875.22) = M $-12,372 309,315.22 = b b 309,315.22

Standard Graduated: y= -24488.745x + 236,013.94= -24488.745 (1) + b Points Used: (1, 236,013.94) (9, 40,103.98) = M $-24488.745 =b b

Extended Graduated: y= -13,394.28x +343,944.34 Points Used: (1, 330,550.04) (24, 22,481.60) = M $-13,394.28

330,550.04= -13,394.28 (1) + b

343944.34= b

b 343,944.34

10. Which college was overall least expensive? Brown University was the least expensive college in my two comparisons. The amount of money that I would save if I went to Brown over Bowdoin would depend on my payment plan. a. Payment in full each year with cash - Amount of money for tuition saved: $204, 061.00 - $198,226.60 = $5834.40 b. Amount of money saved if I do a standard fixed repayment plan. -Total Payment (P & I)/Overall Money paid back to the Government = $246,296.18-$239,254.21= $7,041.97 -Principle money saved: $204,061.00- $198,226.60= $5834.40 -Interest saved: $42,235.18- $41,027.61= $1207.57 Cost Benefit Analysis: College: Bowdoin College Career: Art Director Salary: $127,110/ 5 years Time Period: 5 years Identifying Costs at Bowdoin College: 1. Monetary Costs for all 4 years of College: - Tuition and fees: $205,644.8 In order to find the tuition of my college I looked up Tuition for Bowdoin College and used the information and calculations I had already found for the first part of this project. Textbooks: $1,583.8 In order to find the amount textbook and extra fees would cost me in college I used the Tuition and fees price which is $205,644.80 and subtracted the cost of tuition which is $204,061. Food: $4,800 for 4 years In order to come up with the amount of money I will pay on college all four years I interviewed a college student about how much money they use per week on food. If I were to use around $25 per week I would end up paying $1,200 a year and $4,800 for the four years in college.

Medicine and Toiletries: $ for four years at Bowdoin College In order to come up with the amount of money I will spend on Medicine and Toiletries to be sure I will stay healthy all four years of college I interviewed a college student to find out how much money they spend on medicine and toiletries each week. I calculated how much money I would spend all four years if I spend $15 a week. Travel and Transportation cost: $15,192 For a round trip to Portland, Maine it is $1,266. Assuming that I would travel home for thanksgiving, Christmas, and summer, I would spend a total of $15,192 in order to travel home three times each year. For traveling

home for all four years in college

http://shopping.usairways.com/Flights/BuildItinerary.aspx Landry: $940 all four years I calculated how much money I will spend on laundry throughout my four years in college if I spend $5 a week. Ski pass: $1,200 A Durango Colorado ski pass is around $600 dollars. Assuming I will be able to come home and ski all of Christmas Break and some of thanksgiving break home for at least two years it will cost me $1,200

Total Costs: $232,260.60 2. Non- monetary Costs all 4 years at college: - Not in the mountains: $1,800 I am fortunate to be able to live in the mountains and enjoy a small, friendly community. I will miss this dearly. Overall, Colorado is by far one of the prettiest places in this world to me. This is a high cost for me. If I were to put a price on how much I will miss the beauty, it would be $1,800. Away from family: $4,800 I am going to miss my family at college. With a cost of $25 for every time I miss them per week. My total amount of money I would lose would be $4,800 after all four years of college. My dog: $940 all four years

 I am going to miss having a pet to come home to after a hard day of studying. This is going to cost me $5 per week. Missing my friends: $2,880 all four years Although I am going to meet new friends, I will miss my friends and the relationships I have built all throughout high school. This will cost me $15 per week.

- Not having my own room: $940 all four years Not having my own room is going to be unfortunate. Although I do enjoy being around people. Since I will miss that leature time by myself this is going to cost me $5 a week. Not having my bed: $384 for all four years I am going to miss not sleeping in my own bed, but I can always replace it with a new comfy mattress. Overall, missing it will cost me $2 a week assuming that I get a new comfy bed. Not having a car: $384 It is going to be difficult not having a car to get around campus and run errands outside of campus. Since I will have a bike, this is going to cost me a total of $2 a week as well. Total Costs: $12,128

Total Cost to attend Bowdoin College for four years: $244,388.6 3. Monetary Benefits going to College over a five year period of time after college: - More job opportunity: $20,000/5 = $4,000(year 1) More and more jobs require education beyond high school. Since college graduates have more jobs to chose from I will have a variety of options allowing me to keep my doors open. It is important to me that I will be able to have many different options available to pursuit my passions. Having more jobs options gives me the advantage of doing something I enjoy and have an extreme passion for. I really enjoy having a variety of options rather than a limited amount. In life I strive to keep all opportunities available to

me. Since this is so important to me this would cost $20,000 for a period of 5 years. Earn more money: $250,000/5 = $50,000(year one) A person who goes to college usually earns more than someone who doesnt. On www.scholarships.com I found that someone who spends two years in college earns $250,000 more than someone who doesnt. Expand my knowledge base: $40,000/5 = $8,000(year one) With a college education I will acquire a range of knowledge in a variety of subjects. I will be challenged with advanced knowledge in specific subjects that are most interesting to me. This will increase my ability to critically think and express my thoughts clearly. I love increasing my knowledge and I hope to always be learning more throughout my entire life. Knowledge is more powerful than a price, however for a period of 5 years I think that a cost of $40,000 is reasonable. Increase my potential: $30,000/5 = $6,000(year one) With a college degree I will have a better understanding of community and the world as I explore different interests of mine. I will discover new areas of knowledge and create and consider life long goals. College gives me opportunities to be surrounded with people that will inspire me to better my knowledge and myself. Being in a community with individuals who have similar aspects to life is important to me. If I were to put a price on this it would be $30,000. Higher Salary: $182,365/5 = $36,473 (year one) If I were to work in San Francisco, CA after college and getting a degree than I will have more opportunities for higher salary jobs. In order to become an Art Director I need to go to college and get a degree. I used salary.com to find the value for how much money I could be making. Although this is not reasonable, I took the amount I found the salary at the peak of the salary curve and subtracted the lowest salary to result in a difference. This is an annual salary so I multiplied the difference by 5 for the time period I am looking for. This gave me an estimated amount for how much money I will be making out of college if I had this job. $127,110- $90,637= $36,473 * 5= $182,365 Better Retirement Plan: $20,800/5= $4,160 (year one) If I were to put a price on how much money it would cost to have a good retirement plan I would say is worth $80 per week. I calculated how much this is going to cost me for my time period of

5 years. I took 80 and multiplied it by 52 because there are 52 weeks in a year. I got 4,160. I took this and multiplied it by 5 to get the value I it would cost me to meet the time period I am looking for. 80* 52= 4160 $20,800 Credibility: $26,000/ 5= $5,200 (year one) It is important to me that I am trusted. Whether I am applying for a job, in an interview, or just in general introducing myself as a smart, reliable, and intelligent individual. With a higher education, I will gain a deeper knowledge and it will insure others that I am capable of working in a certain job or persevering through any challenge that is thrown at me in life. Although a higher education does not insure that I am credible, it does show others that I have taken a higher education and am more knowledgeable than a high school graduate. This will cost $100 per week. In order to come up with the price of credibility I multiplied it by 52 because there are 52 weeks in a year. Than I took that number and multiplied it by 5 in order to come to a value for my time period. Total Monetary Benefits of going to Bowdoin College for four years: $569,165/5= $113,833.00 (year one) 4. Non- Monetary Benefits for going to Bowdoin College for four years: - Good Health: $2,000/ 5= $400 (year one) It is proven that people with a higher education are less likely to smoke and participate in dangerous drugs. Since I will be surrounded by people who are motivated to achieve their goals I will have a healthier lifestyle in general. This is pretty important so if there were to be a cost to my health it would be $2,000. Strong Relationships/ greater social cohesion: $4,000/ 5= $800 (year one) Since leaving my friends will cost $2,880 than relationships I will gain in college will be equal or greater. I decided to raise the benefit of gaining stronger relationships and greater social cohesion because it is common that friends that are met in college are long lasting friends. It is common that you grow apart from a lot of your high school friends over time and stay in touch with the friends you had in college. This cost of meeting new people and creating new relationships will be $4,000. Smarter Decisions: $750/ 5= $150(year one)

Having the skill to make educated decisions is very important. Although I know how to make logical decisions, a deeper knowledge will be a reassurance that I will critically think through thinks and therefore make smarter decisions. This would cost $750. Having Shaping Experiences: $12,000/ 5= $2,400 (year one) I made daily decisions that impacting who I am as an individual. In college I will be living on my own. This will be a lasting experience discovering life on my own. I will be surrounded by a variety of people and will create relationships with people that I never would have known I could be friends with. I will find others with similar aspects to life as me or just simply find similarities with others. These shaping experiences will be worth $12,000. Increased ability to adjust to change: $700/5= $140 (year one) Learning how to live by myself is an important life lesson. Throughout college I will learn how to be more independent. I will learn to manage my own schedule and time out of class. Since I will be surrounded by many distractions I will have to learn how to prioritize what I do each day. This is a really important life lesson. This cost would be $700. Clearer self- identity: $4,000/5= $800 (year one) I still remain unclear of what I would l would like to do when I am older. This decision will effect many years of my life so it is extremely important that I am knowledgeable of all the jobs that are available to me. I want to be sure that I am passionate about what I am doing. In general I think it is important that I have the opportunity to take many different courses that I havent been provided to in high school so that I can explore my options. This would cost $4,000. Potential to meet my husband: $100,000/5= $20,000 (year one) It is proven that you are more likely to meet the one you will spend the rest of your life with in college rather than high school. With this idea, it would cost me $ 100,000. This is a completely random number because I it is extremely hard to put a price on love! Total Non-Monetary Benefits of Going to Bowdoin College for four years: $123,450/5= $24,690 (year one)

Total Benefits of Going to Bowdoin College for four years: $692,615/5= $138,523 (year one) Reflection: 1. After completing my cost benefit analysis I found that the monetary and nonmonetary cost of going to Bowdoin College for four years is $244,388.60. Offsetting that cost are the total benefits of attending Bowdoin College for four years which according to my analysis, would provide a total benefit of $692,615 over 5 years. Although college is extremely expensive, the benefits of attending Bowdoin College for a four-year period of time significantly outweigh the cost. 2. I am very confident on my return on my investment because overtime I will benefit significantly more than the actual cost of the investment. I will be gaining total monetary and non-monetary benefits of attending Bowdoin College in an amount of $692,615 over five years and I will be spending $244,388.60 all four years at Bowdoin College. Clearly the benefits outweigh the costs. After two years of college I will have already paid back what I spent in order to go to college at Bowdoin based on the assumption in my analysis. With the amount of benefits I will be gaining from four years of college I will be obtaining $138,523 each year. In two years I will have gained $277,046, whereas my total cost is only $244,388.60. Within twenty-one months after graduating from college and working as an Art Director and earning all nonmonetary and monetary benefits, I will have almost paid for my entire college expenses. 3. In my answers to numbers one and two above, I was assuming I was paying cash for my tuition and fees at a cost of $205,644.80 for four years. Even if I were to take out a Standard Fixed Loan over a ten-year period of time at an interest rate of 3.86% the benefits still outweigh the cost. If you refer to my assumption of a Standard Fixed Loan total payback of principle and interest is $246,296.18 which includes a monthly payment of $2,052.47 over ten years. If we were to apply the same cost and benefit analysis as above in question two, the monetary cost of attending monetary cost at Bowdoin College assuming that I took out a Standard Fixed Loan would be $274,475.78 that includes the following: -$246,296.18 (Principal and Interest Payback) -$1,583.8 (fees) -$1,583.8 (textbooks) -$4,800 (food) -$2,880 (medicine and toiletries) -$15,192 (travel and transportation) -$940 (laundry) -$1200 (ski pass) Total monetary costs of attending Bowdoin college with a Standard Fixed Loan: $274,475.78

Total monetary and non-monetary costs of attending Bowdoin college with a Standard Fixed Loan: $274,475.78 + $12,128= $286,603.78 The benefits remain the same whether I am taking out a loan or not. Therefore, the benefits of $692,615 over a five-year period outweigh the cost of $286,603.78. Since I am gaining more from my benefits, I would not be persuaded to attend a different four-year college even if it wasnt my top choice based on the assumptions in my analysis. 4. There are several other factors can cause my tuition to be more expensive than expected. For example, I might switch my major in the middle of college and end up graduating college in five years rather than four. Or I might do poorly one semester and have to retake classes, causing me to pay a higher tuition. I could also get sick and have to drop out until I was healthy again, making me graduate longer than expected. There are several factors that can increase the cost of my tuition, but according to my cost benefit analysis it would still be worthwhile. 5. -Annual income: $127,110 -Annual income after tax (assuming taxes at 30%): $88,977= net annual income -Monthly income after taxes: $7,414.75 -Ten percent of monthly net income: $741.48 -Monthly loan payment assuming a Standard Fixed Loan for ten years at 3.86% interest: $2,052.47 Using the rule provided that you should not borrow more than 10% of your monthly net income, it would suggest that it would be difficult to pay back my standard fixed loan at a monthly expense of $2,052.47. If this was the case, and I was planning on being an Art Director with a salary of $127,220 a year, it would be better to take out an Extended Fixed Loan rather than a Standard Fixed Loan. For an Extended Fixed Loan, my monthly payment would be $1,061.40 for twenty-five years. This is still more than 10% of the monthly net income that I will be making, but it is a little bit closer than the Standard Fixed Loan. Conclusion: In the analysis that I have done, it would suggest that too much debt for attending Bowdoin College for four years and then becoming an Art Director would be anything that would cause my monthly loan payments to be more than $741.48 because I cannot afford it. This would imply that I couldnt take out loans for the entire cost of my college because I would not be able to afford it. I could take out some loans however, I could work, and I could apply for scholarships. The cost of college includes all of my monetary and non-monetary costs as outlined in my analysis in addition to any loan interest that I might have to take out. I believe

that this is the true price of college in addition to the time, energy, and effort that I will be putting into learning. This project and the research I have performed has informed me that I need to get as much as I can out of my four years of college as much as possible in order to insure that I can get a good job that can pay me well to make the benefits outweigh the costs because it is expensive. Realistically I might have to consider professions that pay higher salaries in order to make the cost worthwhile.