Question of the Day: What’s The Right Amount of Student Debt?
As seniors race to get their college applications completed, the question of how to pay for college looms large. A recent research report from TICAS found that 70% of 2013 college graduates left school with an average of $28,400 in student debt.
So, how much student debt is too much? This CBS video and article tackle the issue head-on while also providing students with some useful rules of thumb when it comes to the right amount of student debt.
This could lead to a great conversation as students discuss what they think is the right amount of debt for THEM and what factors they think are important in figuring out the “right amount.”
- NGPF Blog: Create a Financial Plan Before Heading to College
- Forbes: How Class of 2019 Can MInimize Student Debt
- Credit.com: How to Pay For College Without Building A Mountain of Debt
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.