You have the horror stories: Joe the student graduates $ 50,000 in debt. He can not find a job, and then had to tables in a restaurant while. $ 400 monthly payments on their student loans
Sally leaves the student's University of the State of $ 60,000 debt. You also can not find a job and file bankruptcy - only to find that student loans can not be discharged in bankruptcy. These horror stories are afraid for the future of their own children. What can be done?
Step one: Relax.
The horror stories you hear on TV are the stories of outliers. One third of the graduates of universities and colleges four years (, for which complete data last year year) without student debt at all, according to statistics in 2008, the project on student debt, a cited non-profit organization.
The remaining 67 percent of seniors who carry a debt load complete average debt of $ 23,200. It's very, very of $ 50,000 + horror stories you hear on the news.
And do not forget: student loans are usually loans at low interest rates are the interest is tax deductible. This is one of the best structures of the loan you can expect to receive.
Second step: evaluation.
Before sending high school to college, take a moment to when thinking about what will be your earning his degree.
The college graduate earns on average $ 1 million more than a non-college graduate over the duration of his life, but the data is so large it is probably useless. Connects electrical engineering students in the same class as the majors in sociology. She graduated from Harvard as other graduates will be mixed in the same category.
It is important to ask how much money you depending on your age and your choice of college earn less. In the next two sections we will look at both.
What is your age?
The middle class of 2009 college with a degree in mechanical engineering earns a base salary of $ 53.400, according to Forbes magazine.
It is spacious enough data - there is definitely a difference between, for example, civil engineers and biomedical engineers -., But at this stage it is difficult to predict which branch of the great junior engineer, which makes it easy to predict that you will join wants the Faculty of Engineering.
Especially something technical matic or strong - - if your child to specialize in something else will weigh this potential child will be starting salary. College graduates work in management salaries Retail is $ 27,900 start, reports Forbes.
What college choice?
The reputation of a college or university, especially heavy on the probability that a student find a job in your field and your starting salary. A graduate of Florida State University received an average starting salary of $ 38,500, according to the FSU site, while he was a student at the University of Illinois at Urbana - Champaign is an average starting salary of $ 51,500 profit.
Remember the Forbes list of the data students get starting salaries of $ 53,400? It is a great national average. $ 14,000 - a graduate of a school like MIT guide to get a starting salary of $ 67,270 a student.
How much should I borrow?
Consider the rule "starting salary" applies: borrow more than your expected starting salary.
Under this rule, you can justify a loan of up to $ 67,270 when your child goes in the School of Engineering at MIT when youth who are considering a degree in Humanities at Florida State, though, you should limit the loans in the amount of $ 38,500.
There is only one rule, not a rigid law. The rationale behind this concept is that the graduates of their student loans in 10 years, when applied to pay 10 percent of the gross starting salary for the loan.
Over time, the student will probably get better wages, they can accelerate the repayment of their student loans. But the new editions such as weddings and babies may require most of its increase.
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