A Few Steps to Determine How Much to Borrow
Posted on June 23, 2014 by Lori Wischmann
1. Estimate your full cost of college: Figuring out what college will cost is not often a quick calculation—but it’s a crucial step toward borrowing the correct amount of loan debt for you.
2. Take only what you need: Student loans aren’t free money. You’ll pay back what you take and then some, after interest is accounted for—so make sure to be frugal when possible.
3. Research your earning potential: For a student loan burden to be manageable, the total amount you owe should be less than your starting salary after graduation.
4. Think long term: It can be challenging to think about bills that won’t come for years, but it’s critical to consider the month-to-month implications of what you borrow.
5. Keep a healthy mindset about debt: We’ve been given the impression that borrowing at all is dangerous when it comes to college. But a reasonable amount of student debt can be one of the best investments a student will ever make.