Free Tool: Your Guide to Understanding Student Loans
Question of the Day:
If you had to take out student loans to pay for college, do you know how much debt would be affordable?
As a first-generation college student, learning how to pay for college was almost like trying to learn another language. I heard about scholarships, grants, and student loans in passing but never enough where I felt like I could create a solid plan on how to fund my education.
The Answer:
It’s extremely important that students know how to earn scholarships and grants, but another huge part of not being overburdened with debt is understanding how to navigate student loans.
That’s why Student Debt Smarter is a great tool to have in your back pocket. Not only does it guide you through the student loan process, but it also has free resources that cover navigating the confusing process of covering the cost of college as a whole.
Here's a quick guide on how to get started with the Student Debt Affordability Calculator.
How to find out how much you should (reasonably) borrow in student loans:
(AKA how to use The Student Debt Affordability Calculator)
Step 01: Access the tool via Student Debt Smarter
Bonus: It’s totally free - there's no sign-up or personal information needed to access the calculator, just pop in directly to the site to use the tool.
Step 02: Fill out each category based on your college goals. If you’re still undecided on any of the inputs, that’s okay! You can explore any range of choices you might be considering.
Pro tip: Test out all of the options you are considering and compare how they stack up from an affordability perspective. It’s another really helpful input you can weigh when making your final decision.
Step 03: Submit to view your results
After pressing “calculate results” you’ll be shown a quick view of the estimated amount of student loans you can afford to take out based on your projected starting salary and cost of living.
Step 04. Diver deeper into your budget breakdown
After viewing your student loan estimate you can scroll down to view a more in-depth budget breakdown that explains why you can afford to take out this amount - including your estimated post-college budget based on national averages. The goal is to ensure you have money left over to live your best life after paying all your post-grad bills.
Step 05: But wait, there’s more!
If you’d like to save your results, you can email them to yourself for easy reference later or compare more than one college journey you are considering. After you’re done, don't forget to explore Student Debt Smarter’s other resources on navigating financial and student loans!
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The next steps
It’s time to understand all your choices when it comes to paying for college! Pop into the Student Debt Affordability Calculator and get insight into the affordability of your future student loans. s.