How Much Should You Take Out In Student Loans? Some argue that you can never spend too much on your education. Others refute that saying anything over $20,000 for four years is too much. A recent article posted by Forbes put the top 10 most expensive universities as requiring about $60,000 from their students a year. The justification behind this expensive bill is that you’re getting a reputable education with more one-on-one time with you professors. Is that worth it for you to try to attend that college though? The answer to that question ultimately lies in your hands.
Program Costs It depends on the kind of education you’re looking for. Are you interested in one-on-one work with the professor or will office hours and careful personal study do? If you find a job in your field of study, will your salary be able to cover the costs of getting the education? Is there a limit to how much you’re willing to spend? Again, these are your decisions to make, and hence a “how to” guide about how much money you should spend on your education must ultimately begin with your choice of university. You’re going to want to take out as much in student loans as can cover your schooling costs. This not only includes the price of tuition, but also the price of books, school materials, needed computer programs, and extra fees for special classes. Books alone will often cost you a couple hundred dollars, much more if you take multiple science classes for a nursing degree.
Personal Costs The next group of expenses to worry about will be your personal costs. You can’t live off of class lectures and textbooks alone.
You need money to cover food costs, housing, insurance, utility bills, vehicle needs, clothing, etc. A student loan should take into consideration the costs of all these expenses as well. Figure out how much it would cost to feed, house, insure, energize, and cloth yourself every week and multiply that by the number of months you’ll need financial help. Then consider how much in other miscellaneous expenses you will need to spend money on in the coming months. Total all of your upcoming expenses and circle that number on a piece of paper. Use that number as a minimum loan requirement.
Income Next, factor in how many resources you’ll have available to you, ie. financial assets to counterbalance this number. These can include money in savings or an expected salary from a job. Find out how much money will be available to you while you attend school. Figure out how much from this resource you can afford to use to counteract the minimum loan requirement. The less you have to borrow for a nursing education, the less you’ll have to pay off later. The best way to avoid excessive debt is to pay for your education as much as you can without loans. So once you’ve decided on the place to receive your education, be it nursing or otherwise, consider first how much it would cost you to go to school, and then subtract how much of that money you could provide yourself. This should give you a close total amount to base your loan off of. Photo Credit: thisisbossi, Miladysparis, Symic via Photo Pin cc