It probably comes as no surprise to you that today’s students are collecting record debt. But how much debt is too much? According to CNN’s On The Money, many lenders qualify borrowers for loans without considering other expenses, such as car payments and credit card payments, which are taking a sizeable chunk of students’ income these days, leaving the borrower with unmanageable debt.
This debt burden comes with a price. Many students skip medical check-ups, delay buying their first home or put off having kids because their loans are costing them so much. While student loans are usually a fact of life, don’t go in without first figuring out how much debt you can take on.
Web sites such as FinAid.org offer calculators that outline your likely pay depending on your future career and show you how much of a monthly payment you can handle. So sharpen your number 2 pencil and do some homework before you take out that loan.