What is a “reasonable” amount of student debt for someone graduating in 4 years from a public university with a BA? I read online that the average for the class of 2015 was $35,000. If I end up with that much debt, would I even be considered for financial aid for graduate school? And how long do you have to pay off student debt?
Sorry for all the questions, I am the first child in my family, so I don’t have any guidance on college-related issues.
Reasonable, in my opinion, is no more than the student can take in their own name. That would be the Direct Loans which would total $27,000.
Graduate students are able to take out additional unsubsidized federal student loans so long as they have not reached their aggregate lifetime loan limits. There are also Grad Plus loans available if the student has good credit.
All loans for grad students are unsubsidized. (Meaning interest starts adding up from the day the loans are disbursed.)
Here’s some information about funding grad school to get you started:
http://www.usnews.com/education/best-graduate-schools/top-graduate-schools/paying
The typical repayment period for undergrad loans is 10 years, but it depends on what kinds of loans you have.
https://studentaid.ed.gov/sa/repay-loans/understand#when-do-i-begin
For undergrad school…I stand by my post. Reasonable debt is what the student can borrow alone. $27,000,
Yes…for graduate and professional schools, one can borrow more. But that is not four years of undergrad school.
Another vote for the Direct Loan limit.