Chapter 8 Loans
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Step 3: Determine the four-year value of the tuition assistance. Multiply the
annual tuition assistance by four.
total tuition assistance = annual tuition assistance × number of years
total tuition assistance = $5,125 per year × 4 years
total tuition assistance = $20,500
Step 4: Determine the student loan balance. Subtract the total tuition assistance
from the total four-year cost.
student loan balance = total cost – total tuition assistance
student loan balance = $27,000 – $20,500
student loan balance = $6,500
Check It
Jose is attending a technical college to obtain a two-year certifi cate.
The annual costs of tuition and fees are $5,435. Jose has obtained an annual
scholarship of $1,750 and annual grants in the amount of $2,300. The remainder
of Jose’s tuition and fees will be paid for using student loans. At the end of the
two-year program, what will Jose’s student loan balance be?
Checkpoint 8.4
1. Aasaf plans to attend the local community college. His fi rst year’s tuition and
fees are an estimated $2,245. Based on his family’s income, Aasaf and his
family are responsible for 35% of the tuition and fees. The remaining balance
can be paid for using student loans. How much in student loans is Aasaf
eligible for?
2. Carmen is attending a vocational school. Her tuition and fees for one
year are $4,318. Based on her family’s income, Carmen and her family are
responsible for 30% of the tuition and fees. The remaining balance can be
paid for using a mixture of student loans and grants. How much tuition
assistance is Carmen eligible for?