Loans? Should I Borrow?
Things to consider before taking on any Student debt.
- What is my likelihood of graduating?
- What am I really going to have to pay for this?
- What am I going to earn after graduation?
- What is my debt to earning ratio?
- What else should I consider when taking out federal student loans?
- Financial Awareness Counseling
- 1. What is my likelihood of graduating? - Idaho State University Graduation/Completion Rate for student graduating with a Bachelor's degree is 26%. Over all graduation/completion rate is 29%.
- 2. What am I really going to have to pay for this? - Sticker Price and what your really end up paying
can be miles apart. Besides the cost of Tuition and Fees, students need to look at the other costs for attendance, such as the cost
of living (room and board, personal expenses, transportation). Students need to figure out how much debt they need to take out to
reach that goal. Don't forget the benefit of finding a job and working part-time. See the following links for additional information.
Loans add up! Watch your finances carefully! Loans accumulate over the two, four, five years or more that you will attend school. Estimating the full cost of attendance for the total number of years you plan to attend school will help you understand how much you may have to borrow. Once you have an idea of the total amount of federal student loans you may be taking out, see StudentAid.ed.gov calculators to estimate how much your monthly payments could be.
- Cost vs Financial Resources
- Estimated Cost of Attendance
- Net Price Calculator - Calculate your expenses and your resources. Use these figures to help you determine how much you really need to pay for your education
- See Financial Tips - Look for ways to increase your income, decrease your expense, or both.
- Repayment Choices, Federal Loan monthly payment
- 3. What am I going to earn after graduating? - Look at the programs not just the school.... Ask yourself, "What are graduates of this program earning? "What can I earn with this degree?" Next compare one school's program and cost to another school. Which one provides the better rate of return. Or think about switching to another field.
The graduation/completion rate is based on 6 years of attendance that equates to 150% of the length of our standard program. (Questions regarding this information should be directed to the Office of Instructional Research 208-282-1045.)
- 4. What is my debt to earning ratio? Good rule of thumb - To afford the loan debt you borrow for school, your salary should equal or exceed your debt. Once you are earning a wage, basic needs (housing, food, etc.) must be met first. If your starting salary is $25,000 with $25,000 in debt, it will be harder to pay off than if you have $50,000 in debt and $50,000 in starting salary.
What else should I consider when taking out federal student loans?
- Be a responsible borrower.
- 6. Financial Awareness Counseling - www.studentloans.gov - Financial Awareness Counseling provides tools and information to help you understand your financial aid and assist you in managing your finances. (This is not the Entrance Counseling required to receive Federal Direct Loans.)
Note: You must repay the full amount of your loans, even if you:
- Do not complete your program of study, or do not complete the program
within the normal time for completing it.
- Cannot find employment after graduation.
- Are not satisfied with or did not receive from your school the education or
other services that you paid for with your loan.