<p>I was wondering how much debt you would consider to be too much debt.</p>
<p>For me personally, I don't have plans to go graduate school, professional school, or work at an NPO post graduation.
From such a situation what would you consider to be too much debt for a post college grad to swallow?</p>
<p>There are quite a few loan calculators available to help you figure out how much your monthly payment will be to repay a given level of debt at a known interest rate. Much depends on what kind of job you realistically think you will be able to land. Look up some information about starting salaries for various fields in different part of the country. Remember, out of that salary must come taxes, rent, car payment, gasoline, entertainment, etc etc. It costs more to live than most young people realize. Since most loans are paid off over 10 years, you need to keep in mind that significant loan repayment could postpone buying a house for a long time, since it will be difficult to save for a down payment while paying off the loan.</p>
<p>Here is one calculator. Others have been mentioned on cc, particularly by the poster carolyn, who is extremely knowledgeable. You might try searching some of her old posts for more suggestions.</p>
<p>FinAid</a> | Calculators | Loan Payment Chart Generator (Rates vs Fees)</p>
<p>I mean, I'm worried about that too. But, I'm considering grad school. I think 50,000+ is too much debt for me to personally swallow. I haven't even earned that much..ever. I find it scary that I would OWE that to some creditor. Eek.</p>
<p>Anything that would take you as a college graduate more than a year or two to pay off (i.e. max of 20-40 thousand dollars, depending on how much you plan to make after college) would be too much for me.</p>
<p>fa-la-la-lena, I can't imagine what job a new college graduate would have that would allow the payoff of a 40K loan in one year, or even two. Think taxes, food, gas, rent, daily life necessities. Unless you are living free of charge with your parents, it could easily take 7 years to pay off a 40K loan.</p>
<p>Look at the calculators. Use a realistic income estimate.</p>
<p>Compare it to buying a house. Most people, especially young people who only have 10% down payment available, take out a 30 year mortgage to pay off a 150K loan. </p>
<p>40K is a reasonable maximum, but don't expect to pay it off in a year or two.</p>