URGENT! - If you have a college bound high school senior considering taking out student loans to help pay for college - PLEASE READ!
Here are 2 Methods you can use to figure out how much to take in student loans. One is much more involved, but also more eye opening.
Calculate the impact of student loans to decide
Find your average first year salary
Calculate your estimated net pay
Estimate your loan payments for all four years
Look at your budget on that amount of pay. Can you meet all of your needs/wants on that budget PLUS pay off loans and save?
Ask yourself how much debt you're comfortable with and see which tier you fall into:
Tier 1 - None - I’m not comfortable with debt.
Tier 2 - Some - Up to the amount I can borrow from the Government, about $27,000 for 4 years - I want to stick to the most flexible debt I can access. It will be a significant monthly payment, but I should be able to afford it if I have a good job and I’m willing to make some financial sacrifices.
Tier 3 - A lot - Up to the amount I expect to earn my first year out of college - I’m ok with a pretty large student loan payment for 10 years after school ends, and I’m ok with making substantial financial sacrifices to pay it off.
If you need more than that - you need another strategy!
contact me at firstname.lastname@example.org to talk about your specific situation and what other options you have.