How Much Should Your Family Borrow?
Experts Agree—Only as Much as Necessary
It's tempting for you or your child to borrow whatever you're offered or are eligible to borrow. But it's important to think carefully about how much your child really needs, and to consider other options.
How Much Loan Aid Does Your Child Really Need?
Your family doesn't necessarily have to borrow the entire amount shown in your child's award letter. Even more importantly, don't plan to borrow as much as you can up to the yearly limits.
Consider Options That Will Reduce Your Family's Loans
If you reduce spending or bring in more money, the amount you or your child has to borrow goes down.
- Do you or your child have savings you can use?
- Can your child get by with less by holding down expenses?
- Can your child work more, either in the academic year or during vacations?
- Are there scholarships that your child can apply for?
Estimate Your Loan Payments
The more you or your child borrows, the higher your monthly repayments will be once your child graduates. Use our Student Loan Calculator or Parent Loan Repayment Calculator to do the math. Your child can also calculate monthly payments based on the estimated starting salary of a chosen occupation.
Additional Resource
Learn more about debt levels and annual borrowing patterns in the policy brief, How Much Are College Students Borrowing?
