Hawaii Alaska Florida South Carolina Georgia Alabama North Carolina Tennessee RI Rhode Island CT Connecticut MA Massachusetts Maine NH New Hampshire VT Vermont New York NJ New Jersey DE Delaware MD Maryland West Virginia Ohio Michigan Arizona Nevada Utah Colorado New Mexico South Dakota Iowa Indiana Illinois Minnesota Wisconsin Missouri Louisiana Virginia DC Washington DC Idaho California North Dakota Washington Oregon Montana Wyoming Nebraska Kansas Oklahoma Pennsylvania Kentucky Mississippi Arkansas Texas See Detailsįor example, if the starting annual salary for a chemical engineer is $62,000, your total student loan amount should not exceed that number. Experts often recommend that students not borrow more than 8% to 10% of their projected monthly gross income or 20% of their “discretionary income.” On the other hand, the Consumer Financial Protection Bureau (CFPB) says students should not borrow more than their expected starting salary one year after graduation.

Now that the student loan moratorium is ending after pausing interest accrual and student loan payments for more than 40 months, it’s an especially great time for borrowers to think out how their loan payments fit into their overall financial picture.įirst, let's review the general rules of thumb that do exist. So how much of your income should you actually be putting toward student loans each month in an ideal budget? While there’s no hard-and-fast rule like there is for housing, the answer is no less important to know. Try asking them the same question, except about student loan payments, and you'll likely hear 'well, it depends.' Ask financial experts how much of your monthly income should go toward, say, housing, and you’re likely to get a quick response: 30% or less.

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