How Much Is Too Much? Things to Consider When Getting a NJCLASS Student Loan

One of the hardest parts of getting a student loan is knowing how much to ask for. Asking for too little can leave one destitute, taking on regular employment that puts you at risk of neglecting your future education for your current obligations. But taking too much can likewise be dangerous, since every dollar borrowed today will cost you more than a dollar when the loan comes due. At HESAA, to often we see students borrow too much during their education and live a bit more opulently than their future employment can really support. This results in decreased future earnings and a huge debt that's all the more difficult to pay down.

So how can you, as a student in New Jersey, avoid borrowing too much, without borrowing too little? It's a tough needle to thread, but there are an increasing number of tools that students can use to get the job done right. The first (and oldest) is simply to begin asking around within your own major or specialty. Most departments now understand that student loans are not quiet embarrassments but instead public issues, and are willing to discuss how much other students are borrowing and what expenses can be expected. Schools are much more open about pricing and living expenses, and many will offer suggested borrowing plans for different majors or career paths.

Second, more and more public research has been conducted on student expenses, enabling upcoming students to understand their potential expenses by looking at trends as a whole. Researching what others borrow is key to figuring out how much you should borrow, and enables you to narrow down what sort of range you should apply for. Making sure you borrow something close to what's expected also helps reduce your risk, since it will more closely match you with what you anticipate your industry of choice will enable you to pay back.

Third, it's important to know yourself. Some people can live on store-brand coffee while others will be too miserable to function without daily visits to coffee shops. Look at your own expenses and see what you really spend on yourself - the number may be surprisingly high. Talk to your parents and see what they spent on you in high school, and compare that with your own bills, budgets and spending habits. Accounting for living expenses is one of the most intractable parts of attending college, and borrowing enough to keep yourself comfortable, without overreaching your ability to repay is very important.

In the end, you should borrow an amount that allows you to live comfortably, but that you are comfortable with. If the number looks a little high, it probably is. So don't hesitate to talk to others about what they borrowed, and how they spent it. You may save thousands in the long run.