What Can I Afford to Borrow?

Determine Your Future Income

One way to determine the amount of debt you can handle is to estimate earnings after graduation. Since it’s difficult to predict the job market and how long it will take to land a job, be conservative. For help determining average earnings for specific careers, consult the U.S. Department of Labor, Bureau of Labor Statistics.

Set a Budget

Your monthly student loan payment should not be more than 8% of your monthly salary. When calculating your income, factor in other debts (e.g., credit cards) as well as day-to-day living expenses. To estimate your monthly budget, enter your estimated income and expenses in our monthly budget helper.

Borrow Wisely

To assist you in planning how much you can afford to borrow, check out our loan repayment calculator.

Be Smart About Credit

Establishing, building and maintaining good credit couldn’t be more important. It will affect your ability to rent an apartment, apply for a mortgage and even get a job. Be aware that when you take out a student loan, it will be reflected on your credit report, as will your history of repaying that loan.

• Building Your Credit History
• Get Smart About Credit
• Credit Wellness