Avoiding Student Loan Debt Regret
BIG Ideas:
- Student loan debt is a reality for many graduates but a degree is still a good investment.
- Applying for scholarships and grants, researching and comparing loan options, and finding creative ways to save money and earn extra cash can reduce the amount you have to borrow for school.
- Before you choose your major, research starting salaries to make sure you’re being realistic about the amount of student loan debt you take out.
We get it. No one likes to think about, talk about, let alone take on debt. But with the soaring cost of college, student loan debt has become reality for many students. Just look at the numbers. According to the Education Data Initiative, 42.8 million borrowers have federal student loan debt. What’s more is that the average federal student loan debt per borrower is $37,853, with an average monthly payment of over $500.
But there is some good news. Getting a college degree is still a good investment, especially since the average projected starting salary for a recent college graduate is $68,516, according to a 2024 article by Bankrate. Depending on factors like where you live, how much additional debt you may have and your lifestyle choices, you will likely be able to make that average monthly student loan payment! Especially with some sound budgeting!
However, the best way to make sure you can conquer repayment and avoid “debt regret” after graduation is to be proactive. Let’s break it down:
Lower the amount you borrow.
- Apply for scholarships or grants
Applying for scholarships or grants is worth your time since it’s basically free money. To help you out with your scholarship search, we’ve compiled some helpful tips to find scholarships and grants. (P.S. check out our $5,000 Murray Watson, Jr. Scholarship and our $1,000 No Essay Scholarship). - Research and compare student loan options
While we recommend that you use federal student loans first to take advantage of any federal loan benefits or public loan forgiveness that may be available to you after graduation, a student loan from a non-profit private lender, like Brazos, may help you get a lower interest rate that could save you money. - Get creative
College expenses can really add up, so don’t be afraid to think outside the box to pinch pennies and earn some extra cash. Maybe you can lower your costs by renting your textbooks, commuting to school and skipping those late night DoorDash orders! Or, maybe it’s time to turn your hobby into a side hustle – the possibilities are endless!
Choose your major wisely.
- Research starting salaries in your desired field
Your future earning potential can greatly impact your ability to pay back your loans. So, before you declare your major, know starting salaries. While some majors, especially those in the STEM fields tend to be higher, be realistic. Not everyone wants to be a petroleum engineer, and that’s ok! Just be sure to pick your major carefully and try to balance the amount of debt you take on with your expected starting salary. - Ask for help
It doesn’t hurt to reach out to your school’s financial advisor or career center for help or information – many schools have data on salary information for recent graduates in each major, which could help you decide
With the high cost of college, you’re likely to enter the real world with both a degree AND student loan debt. But, with careful planning, a little creativity and good financial decision-making, you can get the education you want– without breaking the bank after graduation!
BIG help in Texas is right here – at Brazos
For more than 40 years, Brazos Higher Education has been helping make education more affordable for students and parents. As a Texas non-profit, we can offer you BIG savings on various student loans. Contact us today!