Will I Be Able To Pay Back My Student Loans Calculator
College is a great experience and learning opportunity. It is also an investment in your future. When you look at your ability to repay debt from college, you will also need to look at how much money you will make with your chosen major and career path. Essentially you have to make enough to pay the bill for what you learned. Outstanding student loan balances may infringe upon your ability to qualify for a home, auto and other personal loans. In general, you should try to keep your monthly payment for student loans to about 8% of your monthly salary. Use the calculator below to do a quick check to see if your monthly student loan payment falls within this guideline.
Estimating Your Starting Salary
Estimating your income can be tricky. Who knows how much you will make at a job you do not have yet? For defined fields like nursing, fire service, engineering, or teaching, starting salary information is generally available through a number of salary surveys. The actual rate may be on the high or low end of the spectrum depending on the geographic area in which you live. Try using online estimators to see what salaries are currently being paid. You can often search by zip code function to adjust the average salary for your specific location. If you are majoring in art, sociology, or the humanities, salary information for jobs related to these majors is a bit harder to come by. Often times you can talk to your parents, counselors, and mentors and see if they know what the starting salaries are in your field or reach out to professional networks on sites like LinkedIn with questions.
Estimating Your Debt
Estimating how much you will have in debt is a bit easier, but requires leg work. Student loans can be spread out over multiple sources, and gaps may get filled in with credit cards. Total the amount you will have borrowed by graduation to pay for college. Then, find average interest rate for all accounts and total payment term.