iPhone 5s vs. Student Loans

That new iPhone... It's like having another student loan What's it Cost? iPhone 5s vs. Student Loans $650 After One Year of College... $5,500 $1,250 Total Stafford Loan iPhone 5s retail price allotment for freshmen $1,168 $100+ $55 Average monthly phone bill Monthly payment on standard 10-year plan $300 $12,500 $6,638 Books G Supplies Parking Smartphone bills Amount paid after 10 years Amount paid after 10 years What about Mom and Dad? Hey kids, do you pay for these costs? Monthly Cell Phone Bill Credit Card Bills Clothing 77% said yes 71% said yes 35% said yes Source: Citi/Seventeen Survey: College Students Take Control of Their Financial Futures Alternatives Drop the smartphone Go Prepaid %24 At AT&T, drop the monthly bill from $85 to $60 when you drop smartphone and data. Many prepaid companies offer unlimited plans for $45. Some offer smartphones, and nice ones, too! Savings: $25 per month Savings: Can be over $60 per month! How it all adds up The type of phone you have might affect how much debt you pay over a 10-year period. Option 1 Option 2 Traditional smartphone plan Prepaid plan with savings put toward loans Vs. $12,500 $5,400 Smartphone Costs Phone Costs $36,374 $35,303 Student Loan Costs Student Loan Costs (paid off after 8.5 years) Total Savings: $8,171 (and one and a half years of your sweet, precious time) *Assumes $26,600 in student loans at 6.8% interest Share this infographic! AD in Visit Us At RepayDebt.org