College Debt

One of the most common things a student says to me during our advising meetings is "I can't go to that school. It's too expensive."  In this post, I am going to address student debt, loans, and smart shopping.

First off, about 70% of graduating college seniors leave college with some sort of student loan debt. This means you are not alone! Many students take on debt in order to fund their education, as they are fully aware that the perks of spending money on a college degree are greater than saving your money and not getting an education.

So, if 7 of every 10 students has taken out at least one loan, the next question then becomes "how much money should I take out?" Well, it really depends. The rule of thumb is you should never take out more money in loans than what you will make your first year out of college. It is important to think about your potential career then research it (bls.org) to determine your average salary. That average salary should be your loan limit while in college.

When looking at schools, it is important to ask admissions counselors the following questions about student loans/debt:
1. What is the average student debt at this school? (How much money do students still owe after graduation)
2. What is the total cost of attendance at this school?
3. How many students graduate each year? (Then compare this number with the number of students who start freshman year. If there is a wide gap, then you know that a lot of people are not graduating on time!)

When in doubt, use this great tool: http://ticas.org/posd/map-state-data#

Be a smart shopper!

-Miss Loh