Two rules of thumb for borrowing
- Total debt ≤ first-year salary. If you expect to earn $55,000, try to borrow no more than $55,000 in total for your degree.
- Payments ≤ 10% of gross income. On a 10-year plan this keeps room in your budget for rent, savings and emergencies.
This calculator uses the second rule to find the maximum balance whose payment stays within your chosen share of income, and compares it with your planned borrowing.
Max loan = Payment × (1 − (1 + r)^−n) ÷ r, where Payment = Salary × % ÷ 12
How to estimate your starting salary
Use realistic numbers for your field and region: the U.S. Department of Education's College Scorecard shows median earnings by school and major, and the Bureau of Labor Statistics Occupational Outlook Handbook lists pay by occupation.
Ways to borrow less
- File the FAFSA every year and appeal your aid offer if your situation changes.
- Start at a community college for general education credits.
- Apply for scholarships every year, not just as a freshman.
- Use federal loans before private loans; they're more flexible if your income ends up lower than expected.
Frequently asked questions
How much student debt is too much?
A common guideline is that total debt shouldn't exceed your expected first-year salary, and payments shouldn't exceed about 10% of gross income.
Is it worth taking on debt for college?
On average, bachelor's degree holders earn substantially more over a career, but the return varies widely by school, major and completion. Borrowing a reasonable amount for a degree you'll finish is usually a good investment.
Last reviewed: 2026-10-09