How much student loan debt is too much?
Lets say I graduate with a business management degree, with about 45,000$ in student loan debt. Is this too much for my major? At what point is a student in over their head with education debt?
The Department of Education likes gives these tips:
Never borrow more total than you would expect to earn your first year out of college in an entry level position in that job with that major.
Example: If you are going to school to be a Kindergarden teacher… and in your area Kindergarden teachers start out at 25,000 a year then you should not graduate with more than 25K in student loan debt. Anything more would mean you can not comfortably afford the payments and could get into trouble finanicaly or have to move back in with the folks to afford the loan payments.
So your bachelors degree would have to earn you a starting salary (right out of college) making 45,000 a year. If you don’t see these entry level jobs advertised in your area (or where you want to end up when you graduate) making this much money then you need to make a point not to borrow this much ie… find a cheaper school.
Remember, employers don’t pay you more because you attended an expensive, private or out of state school. A month after you are hired your boss isn’t even going to remember where your degree is from, just if you are doing you job.
