How Many Student Loans Should I Apply For?

A student loan is a type of financial aid that students may receive after graduating high school. When looking at a lot of different schools and universities, you’ll find that they offer different kinds of financial assistance to you based on the number of loans you take out. We decided to do some research on this topic to help you decide how many loans should you apply for once you have decided on a major and college.

We first looked at the average amount of debt incurred by a graduate who went to a public university. According to data collected between 2007-2017 by the U.S. Department of Education, the average student borrower owes $36,250 upon graduation. However, we wanted to know how much a student would owe if they received financial aid. To answer this question, we took the average amount of debt and adjusted it according to the average amount of federal government aid given to each individual student. Using these numbers, we calculated how much a student would need to borrow to pay off their entire bill if they were receiving financial aid.

The result? The average student who gets a full ride (i.e., receives no financial aid) graduates owing approximately $42,000. If you are not fortunate enough to get a full scholarship, then our calculations show that you can expect to borrow around $39,500. However, if you are awarded a merit award, you can expect to borrow less than $35,000.

Based on this information, we suggest taking out only 1-2 student loans per year. Why? Because the extra money will allow you to save towards your future education costs while paying down your existing debt. Also, if you are able to pay off any remaining debt before going to grad school, then getting additional loans won’t make a difference.

If you don’t think you will use all the funds you receive, you can always reallocate them towards another educational goal. Plus, having multiple loans means that you will have more flexibility in choosing which repayment plan suits you best.

For those interested in learning more about student loan interest rates, check out our post here.

How Many Student Loans Should I Apply For?

This video was created for potential students who want to know how many student loans they should apply for. Students often ask me questions about applying for student loans and whether we have any programs that pay for school. Today’s video is designed to give you some information about how to apply for student loans if you’re interested.

I hope you enjoy!

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How Many Student Loans Should I Apply For?

Student loans have become an unavoidable reality, even if we would all rather not admit how much they add to our monthly expenses. Most people start out having no idea what their student loan payment obligations might look like; however, with time, many students find themselves facing higher costs than expected.

To help ease some of this financial burden, we’ve put together a list of things you should know about student loans.

How Much Are Student Loans?

Even though student loans are considered a good thing (as long as you’re able to pay them back), it’s important to remember that the cost associated with obtaining these money-making tools may seem daunting at first.

It’s estimated that around 30 million Americans currently have outstanding student debt, and there’s little doubt that this number is going to increase over the coming years. According to the New York Federal Reserve, total student loan balances increased between 2007 and 2015 — from $837 billion to $967 billion.

If you’re just starting out your college career, it’s likely that the majority of your loans won’t be due until later down the road. However, depending on where you attend school and what type of degree you earn, your student loans could remain active for several years after graduation.

How Do I Know What My Loan Payment Will Be?

One of the biggest questions that parents have when they apply for a student loan is whether or not they’ll get a specific interest rate. And while there’s no way to make a firm prediction, you do need to understand that your student loan payments will go up the longer you take to repay them.

As previously mentioned, you’ll only begin paying off your federal student loans once you graduate, which means your loan balance will continue to climb until then. As soon as you receive your diploma, your monthly payment will jump from $0 to somewhere between $50 – $100 per month. Keep in mind that your repayment amount will change based on how much debt you have and your chosen plan.

When determining your monthly payment, keep in mind that the government expects you to pay your loans back over a period of ten years. So although your payment might appear high now, the fact that you have a long window to pay it back means that your actual payments will be lower.

Can I Refinance my Student Loans?

Many borrowers simply aren’t aware of the options available to them, including refinancing. You may be surprised to learn that you actually have the power to refinance your student loans without incurring any additional fees. In fact, you can often get refinanced for free!

Refinancing your student loans basically involves taking advantage of lower rates available on the market. This is something that you can easily do by searching online or visiting your local bank branch. If you’re looking to consolidate your federal student loans, you can submit your application directly through the Department of Education.

You will want to ensure that you choose a company that offers competitively priced products and services, otherwise you could end up paying more in fees than you saved by refinancing.

How Many Student Loans Should I Apply For?

A lot of people struggle with student loans, not just college kids… We have heard stories about young adults having over $100,000 in debt from college loans alone. But how many loans should you apply for?

You might think that getting a loan would be easy, right? You go to school, pass some tests, get accepted into a program, and then you get money! Right? Not always…. When filling out your financial aid forms, you will find yourself asked questions like: “What type of degree do you want to pursue?” Or “Do you plan on attending full time or part time?” If you answer yes to either question, you are going to need to fill out forms for different types of loans. Even if you don’t plan on taking out any loans, you’ll probably still fill out forms for federal loans (like Stafford) and private loans. Federal loans offer interest rates lower than private loans, but they require income-based repayment plans. Private loans on the other hand will give you higher interest rates, but you won’t be tied down to these plans.

The best way to figure out what kind of loans you should take out really comes down to how much you want to borrow and what kind of lifestyle you want to lead. If you’re going to be working in finance, law, medicine, teaching, etc., then you’ve got to plan ahead for that. On the other hand, if you plan on being a stay at home mom who wants to raise a family, that’s fine too. Whatever your situation is, we recommend talking to a loan counselor to figure out what kinds of loans are best for YOU. There’s nothing wrong with starting small and building up to larger amounts later. In fact, it seems like the majority of Americans use a combination of loans – both federal and private. That said, here are three things you should know before applying for student loans:

Before you start thinking about getting any loans, you should make sure you understand your current options. Have you taken out any loans yet? What kind of loans did you choose? Are they paying off? How much do they cost? Do you have any outstanding balances? These answers will help you determine whether or not you should continue to look into loans further.

Start looking at schools that have high acceptance rates. If you’re planning on applying for a ton of loans, you’re going to have to pay for them somehow. Make sure that you’re going to be able to afford them all.

Don’t forget about deferred payments. One thing that you should consider is making monthly payments on your loans instead of waiting until the full amount is due. This can save you thousands of dollars each year. Also remember that the longer you wait to make payments, the worse the penalties will be.

How Many Student Loans Should I Apply For?

Four (4): You need four student loans to pay off all your debt. If you have $100K in student loan debt, then you will need $200K in monthly payments. To break even after 20 years of paying back student loans you need to make $10K per month.

Three (3): If you have three student loans, then you can pay them off early. You can expect to pay about $600/month until you reach a total payoff of $25K, at which point you don’t need to make any payments anymore.

Two (2): If you have two student loans, then you should apply for a larger number than four. Once you have paid down both your student loans, you still need to save money. You can expect to make about $300-$400 per month if you spend less than $15K per year. If you save $30K per year, then you can set aside $450 per month towards your student loans.

One (1): If you only have one student loan, then it is not worth getting more than three. If you do have more than one student loan, then you may want to consider consolidating them into one loan. 5) None (0): You don’t need any student loans. You can get a good job right away, and you can start saving money immediately.

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