Borrowing for College

Hey, could use some advice here. In your opinion, what's the most, in terms of loans and debt, a student should consider borrowing for college? I want to be aware and avoid as much debt as I can. Thanks!

Certainly, a good question! When deciding how much to borrow for college, a helpful rule of thumb often quoted is to not borrow more than your expected starting salary after graduating. So if you expect to earn $50,000 per year in your first job after graduation, you should aim to keep your total student loan debt at or below that amount.

This way, you can reasonably anticipate being able to repay your debt within ten years of graduating without having to overly strain your budget.

However, this rule is just a general guideline and doesn't fit every situation. Factors like job market trends, the financial stability of your chosen career field, and the cost of living in the area where you plan to live after graduation should all be considered.

Also, don't forget to take advantage of opportunities for grants, scholarships, and work-study to reduce your need for loans. Be proactive in finding ways to minimize the cost of your education.

Remember that not all loans are created equally. Federal loans often have more favorable interest rates and more flexible repayment terms than private loans. Be sure to exhaust all federal loan options before resorting to private loans.

Getting a college education with minimal debt is an admirable goal. Keeping a close eye on your future earning potential and making sensible borrowing decisions can help you succeed.