<p>For your undergraduate education, is it reasonable to graduate with 20k of loans to pay back? Many people nowadays see undergraduate work as an extension of high school.</p>
<p>The maximum Stafford loan amount for all four years is just over $20,000. Loan pay back will be about $300 a month for ten years.</p>
<p>Try to keep your loans to a minimum.</p>
<p>Stafford amounts…</p>
<p>frosh:$5500
soph: $6500
jr: $7500
sr: $7500</p>
<p>total: 27,000</p>
<p>If you go to a school that doesn’t limit loans, then you’ll likely have the full amounts in your aid package…and maybe some Perkins loans, too.</p>
<p>Where will you be applying?</p>
<p>There is no magic number - some use the Stafford limits, some like to cap it at the likely starting salary. My view is that it depends on the student’s plans and major, and the financial backing they have from their family. I think that $30K is reasonable for students who are entering fields with better than average job prospects and starting salaries for the area they intend to live after graduation and too much for those who are planning to go on to grad school or enter lower paying/more limited prospect fields. It might be entirely possible for a new grad to afford the repayments on a $40K debt if their family is willing to help them reduce spending in other areas. But as little debt as possible is always the best idea and that means no borrowing for extra items like trips, cars, spending money, etc. - I think that way too many students borrow first before trying to trim their budgets and it’s a very bad habit to get into.</p>
<p>It might be entirely possible for a new grad to afford the repayments on a $40K debt if their family is willing to help them reduce spending in other areas.</p>
<p>true…but it’s sometimes hard to project whether a family could help in such areas. A family could offer to let you live at home after grad to save on rent, but your job may not be near their home. Or, you may not like living at home again.</p>
<p>But, the point is a good one. Those who have families that would be financially unable to maybe make a payment or two when the new grad’s money is tight are at the most risk.</p>