Which is right for student loans?
In a student loan repayment calculator, I found the following calculations for the following costs of a bachelors and masters degree combined:
Number of Monthly Payments 120
Simple Interest Rate 6.8%
Principal Amount of Loan $42,000.00
Your Monthly Payment Will Be $483.33
Your Total Interest Cost Will Be $16,000.48
Minimum annual salary to handle these payments: $72,500.00
However, in another source I checked out, the financial advisors recommended keeping the principal amount of the loan right at the amount of the future job I’m expected to get. So, for a student loan of $42,000, I should try to find a job making $42,000 or more.
Which source is right?
I’m not sure which is RIGHT…but just be careful with student loans….ONLY take out just what you need each year for classes…don’t take out extra. Get a part time job.