Congress amended the Higher Education Opportunity Act in 2008 with provisions that made it easier for families to get financial information on the cost of college. Part of these provisions required institutions participating in Title IV federal student aid programs to provide a price calculator for current and prospective students and their families to determine college costs.
Today, more than seven million Americans owe money on subsidized student loans, with the average student debt load hovering over $25,000. This, in a weak employment market.
Student loan interest rates are set to double next month, and with more than half of recent college grads unemployed or underemployed some experts speculate that federal student loans are the nation’s next economic bubble.
So, is getting a degree really worth the cost? Yahoo! finance expert Farnoosh Torabi tells you how to crunch the numbers:
Step 1: Figure out how much you anticipate earning when you graduate.
Step 2: Don’t borrow more than half that starting salary.
Step 3: To be comfortable, budget your future loan payments at 10 to 15 percent of your take-home pay when you graduate.
Do you think college has enough bang for its buck? Share your ideas and suggestions in the conversation below.
For more about college and education policy, watch Yahoo! News Washington Bureau Chief David Chalian’s interview with Education Secretary Arne Duncan.