‘Broke Millennial’ Author Erin Lowry: How Much Is Too Much To Take Out for Student Loans
Student debt is a hot issue, given how many students and families face this type of debt.
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In fact, there’s around $1.75 trillion in total student loan debt in the United States, according to Forbes Advisor. That includes federal and private loans.
What does that look like on the individual level? It’s about $28,950 per borrower, on average, leaving many to wonder how much is too much.
Consider Your Return on Investment
As college costs continue to rise, students and their families are trying to figure out how to pay while keeping down their debt.
Erin Lowry, author of the “Broke Millennial” book series, weighed in on the topic for an “ABC News Live” segment.
Overall, Lowry said, consider the return on investment on your major and the school you are considering. That includes being realistic about your expected annual salary when you graduate.
“You do not want to take out loans that exceed your starting annual salary, and that’s inclusive of all four years,” she said.
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Take a Strategic Approach
Lowry emphasized a strategic and practical approach to paying for school.
“You really want to make sure you prioritize federal student loans, minimize private student loans, and if you can pursue scholarships, or even look at trade school or community college, then to a four-year program — Anything you can do to reduce the price tag is going to pay off,” she said.
Repaying Your Student Loans
As for navigating repayment after graduation, Lowry told “ABC News Live” that one of the most important things is to always make your payments on time. If it looks like you may not be able to pay, Lowry said to call your lender ahead of time.
“The other big thing to consider is, what is your repayment strategy? Look at the income-driven repayment plans,” Lowry said during the segment.
Also, don’t forget about interest.
“It’s so important that you’re not just paying the minimum due forever and ever, because that interest adds up” Lowry noted.
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