How much loans is too much loans?

[orange23]

Hey guys! I realize money is kind of a sensitive issue but how much are you guys approximately gonna owe after grad school? People are telling me the average is about 40k and I will be owing waaaaaay more than that! Starting to get really nervous that j made the wrong decision 

 

also so how do payment plans work? Like how does one determine what the most minimum payment they could make a month is? Thanks in advance!!! 

Edited May 21, 2016 by orange23

[BamaBelle]

As a general rule, you should try not to take out more in loans than you will make in your first year of employment. There are plenty of loan calculators on the web that can help you figure out payments!

Here's a helpful post on a similar topic: 

 

[Kanga]

This can be a complex answer and question. As BamaBelle mentioned, a rule of thumb is the equivalent of your starting salary. 

Here are some suggestions to consider. Keep in mind, your likelihood of employment in the field is very high. The real variable is where you will work and the starting salary. 

What amount are you talking about? Run that amount through a calculator (just google to get a loan calculator) . Many loans are 10 yerars....that can give you an idea.

Where do you leant to work? IIf it's a school district, virtually all publish their salary tables. Look at the district under human resources and you will probably find it. WHat will it cost you to live in that area? Do you have an option of getting a job and living at home for a year, so make big payments towards loans? 

You can also calculate take home pay in the area you want to live. Google federal and state (specifiy your state) take home pay calculator and you can figure out your take home pay. It's not just fed and state tax, but Medicare, social security, etc. 

It's hard to really say how much is too much, because everyone's situation is different. For example, my friends son took out loans to attend a prestigious STEM university. I think he owed about 40K after undergrad. He lived at home for a year and had them paid off in that year. However, that amount would have been high for someone who has to support themselves and is a preschool teacher!