How much should you borrow?

College acceptance letters are being mailed, and many seniors are receiving letters from the office of financial aid from these institutions. These letters are telling parents how much tuition and other fees are going to cost per year, and what type of financial aid their child may be eligible for. Often, loans are an integral part of the financial aid package. Most people borrow money to attend college, but with changes in the economy, borrowing too much can be a costly decision.

In Jeff Smith's website, yourpathahead.com, you can estimate how much money you should borrow based on your major. This information is based on starting salary and average median salary. For example, for students majoring in education, no more than $23,500 should be borrowed. "Exceeding these guidelines will result in lower standards of living," Smith states in his book, Your Path Ahead. This is not engraved in stone, however, Smith takes a look at cost of living vs. salary, showing what is a realistic amount of money to borrow without going into too much debt.

It's a good idea to compare financial aid packages from each institution. Make sure to complete the FAFSA as early as possible in January, 2014, and attend Landrum High School's Financial Aid Night on January 27th.