Friday, June 12, 2015

Student Loans Provide Interesting Topic for Math Students


As a Texas math teacher, I’ve just implemented a series of new math standards in my classrooms. One critical part of the new standards is personal financial literacy. The Texas legislature has decided that students need to be aware of the impact financial knowledge and decisions can make on their lives, and I wholeheartedly agree. One of the standards requires sixth grade students to “explain various methods to pay for college, including through…student loans” (TEKS 6.14G, 2012). In our lessons, we explored the costs to attend various colleges and what could happen if students decided to take out student loans. I also told them my own student loan story.

My parents always stressed that “I would never have to pay for a higher education,” if I kept my grades up. I worked hard and earned partial scholarships in undergraduate and graduate school, but I still decided to take out students loans to cover the rest of my college expenses. I made sure I was an informed borrower, even trying to pay the interest that began to accrue while I was still in school. Once I graduated and began working in the “real world,” it was time to pay back the loans. I struggled a bit at first, but found a balance that worked. When I changed careers, the salary I made barely covered my living expenses and loan payments. I began what I like to call “the student loan dance.” I moved through a series of deferments and forbearances and finally ended up on an income-based plan that has given me a sense of peace.

One of my students asked what would happen if “I decided not to pay [my student loans].” I explained the concepts of default, lawsuits, and garnishment. In Texas, defaulting on a student loan would result in losing my educator’s license. I’m sure many other states have similar measures. Ultimately, I told my students that when I decided to get student loans, I was taking out a mortgage on myself – and that’s not a bad thing. My personal “mortgage” gave me the opportunity to get a great education and impact the lives of hundreds of students over the years. And, just as I work hard to keep a roof over my head, I work hard to make sure that one day, I will make that last student loan payment. One day…

A quick lesson in student loans:
  • Allow students to research the cost to attend college for four years
  • If you have access to computers or tablets, direct students to one of the online student loan calculators. Bankrate.com has a good one: http://www.bankrate.com/calculators/college-planning/loan-calculator.aspx
  • After students find their potential repayment amounts, have them search for their potential annual salaries based on their future careers. I totally rely on the United States Bureau of Labor Statistics: http://www.bls.gov/oes/current/oes_nat.htm
  • Students should then calculate how much of their potential salaries will be used on student loan payments.
  • In a writing prompt, ask students if the amount of the loans and their potential salaries will impact their decisions on where they want to attend college.

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