Video: What College Students Need to Know Before Borrowing

Watch Financial Education Expert Adam Carroll discuss Student Debt in this Exclusive MoneyTips Video

January 24, 2017

Should a college student's major determine how much money he or she should borrow? National Financial Educators Chief Education Officer Adam Carroll thinks so! In this Exclusive MoneyTips Video, Carroll describes how student debt has exploded for students and the country as a whole, and what can be done to curb this national epidemic.

Find out quickly at what rate you can refinance your student loan.

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Jane | 01.24.17 @ 18:55
I'm not sure if the speaker's idea of gauging the amount a student can borrow for a student loan should be based upon the starting salary for their major is a good idea. First, students change majors, which then changes average starting salaries for jobs. Second, geographically a student going to college in NYC and a student going to college in Raleigh, NC have different living expenses, costs of books, tuition, etc. Third, the average starting salaries for jobs is an average. The same job could pay up to $30k or more (or less), depending on where the student eventually chooses to work.
Erin | 01.25.17 @ 16:21
It's an interesting idea to make borrowing commensurate with the major a student is entering, but I think the cost of education itself should be commensurate with the expected salary a person is going to make. I think there are lots of things that can be implemented to control the costs of higher education that have nothing to do with how much people borrow, but I do agree that they should not be borrowing more than they absolutely need.
Zanna | 01.25.17 @ 17:31
I disagree with basing your borrowing off your intended major. The true gauge of how much a college student should borrow is this: Are you a college student? Yes. Then, do not borrow money. Look for cheaper schooling options, like community colleges or trade schools, work part time, apply for scholarships, and try to pay as much as you can without borrowing. Even an "affordable" loan will put you way behind in saving for your own family, buying a house and eventually (hopefully!) your retirement.
Crystal | 01.26.17 @ 13:20
Yikes. I've known very few students who have actually gone into the exact field they had hoped to when starting college. Circumstances change. Life gets in the way. Sometimes we even shoot higher than what we originally intended. There are too many variables in my opinion.
Chrisitna | 01.26.17 @ 17:25
I completely agree with Jane - there are too many variables to take into account to base a recommended loan amount on the starting salary for their major.
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