What is Reasonable College Student Debt?
Whether you are just planning to start a college, have been taking classes for few semesters or about to ready to graduate soon, it is a good idea to think about how much student loan debt you are willing to own.
How much College Student Loan Should I Get?
It is easy to get student loans if you apply for them consistently; what is not easy is that getting many good loans with very low interest rates. Here are some things to consider while you decide how much loan you should apply for:
A typical average debt has increased. The average student loan debt has climbed over many years; before year 2005 it was under $10,000 then after year 2006 it increased to $15,000. Now the most recent data says that college students have an average debt of $25,ooo.
Experts’ recommendations. Many school counselors recommend that students don’t borrow for the entire 4 year college at the same time; instead try to apply for loans as you enroll for next quarter, semester or academic year. This way you make sure you aren’t borrowing excessively and not fall into debt with massive interest rates compounding in your account.
Calculate your income for the first year in job. If possible, borrow no more than what expect to earn your first year out of college. If you are going for doctor or law degree, of course you debt can easily go over $100, 000 and that’s ok because you will be making that much too. However, if you are going for lower than median average salary or wage career, your college student loan debt should be much lower as well.
Other expense. While in college, your expenses aren’t limited to tuition, fees and textbook cost. Many of the students have various bills to pay, including rent, utilities, health and car insurance, gas, groceries, cable, cell phone, internet– all of which can add up very quickly to become a noticeable expenses. That’s why some students prefer to go to college or university close to home, so some of these monthly bill payments can be avoided.
In state or out state tuition. This one is a big factor. Lots of colleges and university charges nearly twice the tuition for out of state students. Therefore, if you are able to pay in-state tuition you can borrow lesser amount of student loans. Your main objective besides getting good high grades should be keep your debt low.
Working or Not. While in school, if you are working part-time or full-time that can help a lot as well. Money will be always short, but working during the days or nights when you don’t have classes can make a big differences. You will not only have some extra cash in your pocket, spending less since you will be at work but also don’t have to apply for as much loan as other students.