Scary students loans – Is there a debt level you don’t have to be afraid of?

Do you know what is scary?! We’re not talking zombies, ghosts, or witches. How about these facts?


While those facts may not make you hide behind your pillow as if you just saw Freddy Krueger, they probably will up the worry level for your future college-bound student.

What is a parent to do? We’ve talked about these facts before, and we truly are not trying to scare you (well, maybe a little bit). We want you to give serious thought to your plan BEFORE you start visiting colleges. We are on a mission to end the student debt crisis one family at a time--for you to make informed college decisions to “know before you go”.

In our experience, parents have a hard time saying no to their kids when it comes to college choice, and they will “do whatever it takes” to send their child to a college they simply cannot afford. This pattern has to stop. With over 2,000 colleges in the United States, you can find an excellent school that your child will love.

What parents sometimes don't realize is the impact on their child’s future when setting a budget becomes secondary in the thought process.  It isn't just about the money. It is about what the burden of that debt does to you. It is about a lack of freedom for those saddled with debt.  It is holding people back from being their best and following their dreams because they have to sell out to the highest bidder because of their monthly payments.

We realize debt free college just isn't realistic for most families. So our philosophy is your level of debt should be commiserate with your income potential--no more than 1x your projected annual salary upon graduation.  For every $10,000 you owe in loans, you will pay roughly $100 per month on the standard 10 year repayment.  If your debt load is $30,000, you’ll pay roughly $300 month and $3600 for the year.  If you make $36,000 per year, your total payments for the year will be roughly 10% of your gross salary.  (The federal government’s income based repayment plans require 10% of your discretionary income—not a coincidence.)

We know the facts can be scary. We know debt free college is often not a reality. But we also know how to scare away that monster hiding under the bed and shine a light on a sound college funding plan.