How Bad Are Student Loans Reddit?

What are the bad things about student loans?

  • Student loan debt can lead to delinquency and even default, which can ruin your credit score and prevent you from getting approved for other types of credit. Student loans are difficult to discharge in bankruptcy, requiring you to prove that paying off the debt would cause you undue hardship.

Are student loans a bad idea Reddit?

Borrowing nothing would be ideal. Student loans are definitely worth it if you pick a field that has jobs and has decent pay. I wouldnt live on them though like some do that’s how you take out way too much. If your only going to have 20k or less don’t stress it and go for it.

Is 30k in student loans bad Reddit?

30k isn’t that bad. You could theoretically save that in 2.5 years working a low paying full time job if you don’t have many bills.

Is 40k Student Loans Bad?

Research potential salaries. This ensures that you have enough income to comfortably make your student loan payments. So if you anticipate that you’ll earn $40,000 in your first entry-level job after graduation, you shouldn’ t take out more than $40,000 in total student loans.

You might be interested:  What Happens If I Stop Paying My Student Loans? (Perfect answer)

Is 20k student debt alot?

Most loans have a 10 year repayment period so borrowing $20k isn’t bad at all, that would mean you needing to earn at least $10/hr after graduation — most likely you will earn more than that as a college graduate with potential to earn more.

Is taking out loans for college worth it?

The data is clear: paying for a college degree with student loans may be worth it. But that doesn’t minimize the burden of a large balance. Luckily, there are ways to reduce college costs. By borrowing less, it may be easier to tackle student loans after graduation.

What is an acceptable amount of student debt?

The student loan payment should be limited to 8-10 percent of the gross monthly income. For example, for an average starting salary of $30,000 per year, with expected monthly income of $2,500, the monthly student loan payment using 8 percent should be no more than $200.

What is an okay amount of student loan debt?

This corresponds to having monthly loan payments that are about 10% of gross monthly income. That is the equivalent to the rule of thumb that total student loan debt should be less than your annual starting salary. A key takeaway is that you should keep your student loan debt in sync with income after graduation.

How long is the average student loan?

The average student borrower takes 20 years to pay off their student loan debt. Some professional graduates take over 45 years to repay student loans. 21% of borrowers see their total student loan debt balance increase in the first 5 years of their loan.

You might be interested:  How Does Paying Off Student Loan Affect Credit Score? (Perfect answer)

Is $30000 in student loans a lot?

If you racked up $30,000 in student loan debt, you’re right in line with typical numbers: the average student loan balance per borrower is $33,654. Compared to others who have six-figures worth of debt, that loan balance isn’t too bad. However, your student loans can still be a significant burden.

Is 40k too much for college?

Several told me a rule of thumb is that total undergraduate borrowing should be limited to what you might expect to make your first year after graduation. By that measure, many college graduates seem to be doing well: Average debt is about $37,000 and first-year salaries are close to $40,000, on average.

How long does it take to pay off $100 K in student loans?

It could realistically take between 15 and 20 years to pay off a $100,000 student loan balance, or longer if you require lower monthly payments.

How can I pay off 200k in student loans?

Here’s how to pay off $200,000 in student loans:

  1. Refinance your loans.
  2. Add a cosigner to improve your interest rate.
  3. Sign up for an income-driven repayment plan.
  4. Pursue student loan forgiveness.
  5. Use the debt avalanche or snowball method.

Leave a Reply

Your email address will not be published. Required fields are marked *