Borrow only what you absolutely
need
to cover the cost of your education.
If you must borrow, accept only what's necessary to cover your college costs (tuition and fees, housing, meals, books, personal expenses, and transportation). Remember, when it's time to repay, you'll have other financial obligations as well—like rent, a car loan, and living expenses.
Financial professionals recommend that monthly student loan payments be no more than 10% of your monthly income (before taxes). The more you earn, then, the more you can borrow.
That’s why it’s important to calculate how much you'll be expected to repay on student loans each month and compare that amount to what you think you'll earn after graduation. Ask yourself these two basic questions:
- What percentage of my monthly income is the monthly loan payment likely to be?
- Can I make my loan payments, cover my living expenses, and start saving money?
Use our Budgeting Calculator to identify key budget items
and better understand your financial situation.
Even if you don't finish school or can't find a job, you'll still have to repay your
loans—with interest. |
