Student loans can help you graduate on time and get the career of your dreams. But when it comes to student loans, how much debt is too much? Luckily, there are lots of different ways you can keep your costs down to graduate with minimal loans. Here’s what you need to know.
In 2018, Americans are burdened by student loan debt more than ever. In fact, the average student loan debt for 2017 college graduates was $39,400, six percent higher than the year before. There’s one other student loan statistic that may surprise you—Americans owe over $620 billion more in student loans than in credit card debt. For those of you counting, that’s $1.48 trillion. That’s a scary statistic.
So does that mean that $39k is right for you? Not necessarily. Many students take out more or less depending on the cost of their university, whether or not they’re working while going to school, or what they receive in scholarship funds.
One of the most widely distributed pieces of advice on the subject is that you shouldn’t take out more in student loans than you will earn in your first year’s salary. So, if the average student takes out $39,400 and your salary meets or exceeds that number, you’ll be able to handle your repayment plan.
Some students choose a lucrative major with a high return on investment to counteract their loans debt. For instance, engineers have an average starting salary of $70k, so they can safely take out that amount to pay for school. On the other hand, a liberal arts major should stay closer to the national average, as most liberal arts students make $40k thfeir first year out of school.
The average repayment plan is 10 years long. If you take out $40k in loans at a 6.5% interest rate, you’ll pay $454 per month. However, every repayment plan is a little different. At DEXSTA, we offer 15-year undergraduate and graduate loans to help you lower your monthly rates. For instance, if you take out $40k in student loans at a 6.5% interest rate at DEXSTA, you’d be paying around $348 per month, which is over $100 less each month.
Keep costs down by getting all of the scholarship and grant money you can. Scholarship and grant funds are earned, but that money doesn’t need to be paid back. This could reduce the amount of money you need to take out in loans. By reducing your reliance on student loans, you can spend less money while earning your degree.
DEXSTA is proud to offer some of the most affordable student loans. If you’ve tapped out your scholarship and grant federal loan options, but you still need money to pay for college expenses, our team is here to help. We offer competitive rates to help you finance your college education. Apply for your student loan today!