This document provides guidance on planning for higher education by outlining six steps: 1) identify career pathway options, 2) research job outlook, 3) identify relevant job options, 4) calculate total estimated education costs, 5) calculate estimated monthly student loan payments, and 6) calculate debt-to-income ratio. It walks through these steps for an example student, Imani, interested in becoming a lawyer. For Imani, the debt-to-income ratio for both education options presented exceed the recommended 10-15% range.

1. Advanced Level

2. 
The best way to take charge of your future is to plan for it!
Why is it helpful to have a career goal in mind before
pursuing higher education?

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© Take Charge Today – August 2013 – Planning for Higher Education – Slide 3
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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© Take Charge Today – August 2013 – Planning for Higher Education – Slide 4
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Read about
Imani’s Dream

5. 
How to Determine What Type of Training and Education You Need

6. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 6
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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© Take Charge Today – August 2013 – Planning for Higher Education – Slide 7
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
At each level,
there may be
certificate
programs or
informal
training
opportunities

8. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 8
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
It is helpful to create several short-term goals that
result in the overall career goal

9. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 9
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Step 1:
Identify
career
pathway
options for
Imani

10. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 10
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

11. 
Consider opportunity costs when making higher education decisions.
What are the potential costs and benefits
to receiving a higher education?

12. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 12
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
• Lost wages from
not working while
in school
• Cost of higher
education/training
programs
• Opportunity to
earn higher
wages
• More
employment
opportunities

13. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 13
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Job Outlook – demand for a particular job when you are qualified
and ready to enter the field

14. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 14
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Imani’s Job Outlook
Level of education and
occupation
National
growth rate
(%)
Projected number
of job openings
(nationwide)
Job outlook for
your state
Associate: Paralegal
Bachelors: Political Scientist
Doctorate/Professional:
Lawyer
Step 2: Research Imani’s job
outlook for each level of education
10-19%
3-9%
10-19%
83,400
2,800
212,000

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© Take Charge Today – August 2013 – Planning for Higher Education – Slide 15
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Relevant Job Options
Level of education and
related occupation
Alternate occupation #1 Alternate occupation #2
Associate: Paralegal
Bachelors: Political
Scientist
Doctorate/Professional:
Lawyer
Complete step 3 to research
relevant job options
Bookkeeping, Accounting
and Auditing Clerk
Geographer
Judicial Law Clerk
Legal Secretary
Teacher
Sales Agent,
Financial Services

16. 
Calculate your education/training debt to your estimated starting salary.

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© Take Charge Today – August 2013 – Planning for Higher Education – Slide 17
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
The school’s website will help
you estimate the cost per year
Remember to include all costs
such as tuition and books, room
and board, etc.

18. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 18
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Goal:
Debt-to-income ratio no more than
10 and 15% of your estimated starting income
Debt-to-Income Ratio – standard tool that calculates whether a
borrower will have difficulty meeting his or her loan repayment
obligations

19. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 19
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Training
Number of years
to complete
Potential cost
per year
Total estimated
cost per degree
Bachelor’s degree years $43,289/year
Master’s/Professional
degree
years $42,654/year
Potential Total Cost
Step 4: Calculate Imani’s
Total Estimated Cost
4
3
$173,156
$127,962
$301,118

20. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 20
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Training
Number of
years to
complete
Potential cost per
year
Total estimated
cost per degree
Associate’s degree years $13,459/year
Bachelor’s degree years $43,289/year
Master’s/Professional
degree
years $42,654/year
Potential Total Cost
Step 4: Calculate Imani’s
Total Estimated Cost
2
2
3
$26,918
$86,578
$127,962
$241,458

21. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 21
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
OPTION 1 OPTION 2
Loan Balance
Interest Rate
Loan Fees Assume none Assume none
Loan Term (years)
Minimum Payment Leave at $50 Leave at $50
Enrollment Status Not specified Not specified
Degree Program Not specified Not specified
Total Years in
College
Estimated Monthly
Loan Payment
Step 5:
Calculate
Imani’s
Estimated
Monthly
Student
Loan
Payments
$301,118 $241,458
6.8% 6.8%
30 30
7 7
$1,963.06 $1,574.13

22. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 22
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Occupation: Lawyer
Median annual wages
Median monthly wages
(annual wages / 12)
Step 6: Calculate Imani’s
monthly wages
$113,310.00
$9,442.50

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© Take Charge Today – August 2013 – Planning for Higher Education – Slide 23
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Option 1
Option 2
Monthly loan payment
= debt-to-income ratio
Monthly wages
Monthly loan payment
= debt-to-income ratio
Monthly wages
Step 6: Calculate Imani’s
Debt-to-Income Ratio
$1,963.00
$9,442.50
20.78%
$1,574.13
$9,442.50
16.67%

24. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 24
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
 Does either option provide Imani with an ideal debt-
to-income ratio between 10-15%?
 How can Imani reduce her opportunity cost (high
debt) to make her dream of becoming a lawyer a
reality?
 Write a SMART goal for Imani to implement a plan to
become a lawyer.

25. 2.3.4.G1
© Take Charge Today – August 2013 – Planning for Higher Education – Slide 25
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
The best way to take charge of your
future is to plan for it
Refine your education and training SMART goals
Answer the following questions:
o How can I determine what type of training and education I
need?
o Will there be jobs available? If so, will I earn enough in my
career to pay for the education and training required?