Follow this rule of thumb to avoid taking on too much student debt

As a writer for a news site, I stumbled upon an interesting article titled “Follow this rule of thumb to avoid taking on too much student debt.” The title immediately caught my attention because student debt is a growing concern among individuals looking to pursue higher education.

The article advises that as a general rule of thumb, you should not borrow more than your expected first-year salary after graduation. This means that if you anticipate earning $40,000 in your first year after graduation, you should limit your total borrowing to $40,000 or less.

To put this into perspective, the average student loan debt for American college students is $37,584. However, what many students fail to realize is that taking out loans beyond their means can have long-term financial consequences.

By carefully considering the return on investment for each borrowing decision, students can make informed choices about their education and avoid the burden of excessive debt.

One way to minimize student debt is to prioritize low-cost options, such as attending community college for the first two years and then transferring to a four-year institution. Additionally, students should look for scholarships and grants to supplement their education costs.

In conclusion, student debt is a growing problem that can have a significant impact on individual financial wellness. By following the rule of borrowing less than your expected first-year salary, students can make informed decisions about their education and minimize the burden of debt in the long term.