Student Loan Management Issues
Every year students apply for FAFSA and scholarships, with hopes that they can reduce the amount of loans they will take out. A question that most people think but never ask is “what’s the biggest my student loans should be?” As a general rule of thumb, your student loans should never be more than 2x your expected average salary.
Here is a basic approach on how to manage your student debt:
- Minimize the amount of debt you take out.
- Try to take the most favorable debt possible, even if that means taking more out as an undergraduate student so you take less out as a graduate student.
- If a person must borrow for school, it should usually be the student.
- When entering residency (as a graduate student) decide between REPAYE and student loan refinancing.
