Personal Finance 1307

Before borrowing you must be aware of your personal risk tolerance – even though borrowing for your education is an investment, you are still taking on risk.

If you have a high risk tolerance then you are willing to borrow however much you need in order to cover your expenses while enrolled in school.  You understand may require you to live on a tough budget upon graduation, but you do not mind postponing financial goals until after you have finished paying off your student loans.  In this case you total loan should not surpass your expected future salary – 10% to 15% of your future income will likely go to loan payments.