What borrowing $30,000 means for your future.

Before you sign that borrower’s letter to cover your tuition and expenses, let’s take a look at what that might mean for you long-term.

First, the numbers. Let’s say you borrow $30,000 over the course of four years. This pays for your in-state tuition and fees, room and board and books. If you borrow only federal loans, subsidized the first year and unsubsidized afterwards (the norm), at the average rate of 6.5% interest, then by the time you graduate, your loan total (including interest) will be about $33,000.

Typical repayment plans last for 10 years, meaning your actual payoff amount will be just over $40,000. Your monthly payments will be around $350.

A typical starting salary for a recent college graduate in Florida is about $44,000 a year; monthly take-home pay is around $3,000. That makes repaying your loan totally viable, as long as you can stay on top of your budget.

However, if you experience unexpected financial burdens, just reach out to your loan servicer. There are options that can help you avoid impacting your credit score, or worse, ending up in default of your loans. Between different repayment plans, refinancing, loan forgiveness programs, and temporary pauses like deferment or forbearance, all is not lost.

Student loans can be intimidating, and borrowing is a serious obligation. However, if you stay in communication with your loan servicer and don’t go silent when things get hard, loans can help you jump over that final hurdle in pursuing a college degree.