What is the maximum amount of money you should consider borrowing for college expenses?

Considering the financial implications of borrowing for college, the recommendation of borrowing less than your expected first year of salary is rooted in practical financial planning. This guideline suggests that the amount you borrow should not exceed what you can reasonably expect to earn after graduation.

By keeping your student loan debt below your anticipated first-year salary, you are more likely to manage repayments effectively without straining your budget. This approach emphasizes the importance of aligning student debt with future earning potential, allowing for a smoother transition into the workforce without the burden of excessive debt overshadowing your early career.

In contrast, borrowing half, equal to, or even twice your expected first year of salary can create significant financial challenges post-graduation. These amounts could result in debt loads that are difficult to manage, potentially leading to financial stress or delaying key life milestones such as buying a home or saving for retirement. Hence, the recommendation to borrow less than your expected first-year salary is seen as a prudent strategy for fostering long-term financial health.