Borrow against a number, not a vibe
Before you accept a loan, estimate your first-year salary in your field (career outcomes data by major is a starting point) and aim to keep total borrowing at or below that number across the whole degree. A rough rule: monthly payments under about 8–10% of monthly starting pay stay manageable. Every dollar you do not borrow is a dollar plus interest you do not repay.
Subsidized first, then unsubsidized, then think hard
Use subsidized federal loans before unsubsidized ones, and both before parent PLUS or private loans. Private loans lack federal protections — income-driven repayment, forbearance, forgiveness paths — and usually cost more. A private loan to cover a gap is sometimes right, but it is the last option, not the first.
Track it every year
Log in to the federal loan site once a year and write down your running total and the servicer’s name. Loans from different years can end up with different servicers. Knowing the number keeps the decision to borrow more each year honest.
Interest while you study
Unsubsidized interest accrues from disbursement and is added to the principal (capitalized) at repayment unless you pay it as you go. Paying even $25 a month toward interest during school meaningfully lowers the balance you start repaying. Subsidized loans do not do this while you are enrolled.
Before you leave
Federal exit counseling is required in your final term and walks through your balance, servicer, grace period (usually six months after you drop below half-time), and repayment plan options. Do it carefully rather than clicking through — it is the clearest picture you will get of what you owe.
Repayment basics
The standard plan is ten years of fixed payments. Income-driven plans set the payment as a share of discretionary income and can lead to forgiveness after many years. Public Service Loan Forgiveness applies to government and nonprofit work. Never ignore a bill — call the servicer; there are always options short of default.
Fictional information
UW–Porter Falls is a work of parody. Every office, person, building, phone number and statistic on this page is invented; nothing here describes a real institution or a service you can actually contact.