Students often opt to get loans to pay fees in college. However, this can be a bit limiting when they incur too much debt within the school period. So, do you know how much student debt is too much?

Accumulated debt for a good cause isn’t bad, but when spent badly it can be a cause for alarm. The student loans often taken to pursue education are often given to cater to those immediate needs. However, if you deplete the money and start looking for other sources to get the money, you can easily fall into too much debt at a tender age.

In this article we will cover; how much student debt is too much, how much credit card debt is too much for a student, how much debt is dangerous, ways to avoid too much loan debt, whether you can do it without credit and how much is too much student loan debt.

It is necessary to think everything over and make the right decision

How Much Student Debt Is Too Much?

The amount students borrow differs based on their needs. The amount of debt a student will borrow is a determinant of whether they have a scholarship, get support from parents, the university they attend, or have enough savings for college and their needs.

Therefore, even if students are pursuing the same course, the amount of debt may differ. At the end of the day, one should take up a student loan that they know they can comfortably pay once they graduate and get their job.

Well, on the question of “How much student debt is too much” well if it strains you after college, that’s too much. One of the major rules is not to take up a loan that will require you to pay more than 10% of the gross income you will be getting once employed.
That’s why it is recommended that parents start saving up for their children’s college fees as early as possible or the students can take up jobs during their holidays to help save up for that.

Therefore, it is crucial to check your profession to get an estimate of what people get paid. Through that, you can budget and know how much debt you can comfortably pay. Paying the debt fast is better to ensure it doesn’t incur more interest.
It is better to repay the loan within your first 10 years after school. Also, try and estimate what you will be required to pay per month. The earlier you finish it, the better. However, it all depends on how fast you acquire a job. However, always take up a loan that will cater to your needs.

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How Much Credit Card Debt Is Too Much As A Student?

Credit cards are crucial for everyday purchases and building a credit history. However, they can be dangerous when used to take up student loans for college. Since a student doesn’t have a steady income yet, too much debt may cause a dire financial situation.
Therefore, students need to get credit card debts that are manageable. However, if as a student you have too many loans, it can lead to your credit score being affected and even affect whether you can get a loan later on.

Also, incurred interest can affect your debt-paying capacity. Students are recommended to keep their credit utilization below 30%. If it is above that, then that is too much credit debt.

Even if you may have credit card debt as a student, you can consider saving up and paying the debt in small amounts even before you are done with college. Also, it is important to have a plan for how you will pay off the loan.

It is important to restrain from incurring too much loan. Therefore, as a student, you can consider cutting down your expenses, finding other income channels, paying more than the minimum credit card debt amount, paying on time, paying off small debts first, being patient when paying off the debts, and trying to avoid carrying your credit card everywhere. This helps to limit your thoughts of overspending or taking more credit card loans.

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How Much Debt Is Dangerous?

Student loan debts are alarming in different parts of the world. The debts take a toll on the individuals after graduation when one has to get a job and start paying up the loans. Student loans can be termed as being both good and bad.

According to education data statistics in 2021, the average student loan debt amounts to $40,904. Therefore, a student will be required to pay about $460 per month. With such a payment, a student will take up to 20 years to fully pay the loan based on the interest also incurred.

However, based on one’s ability, one can pay off the loan in a larger amount to reduce the interest being incurred. With the rising cases of unemployment, it is crucial to get an estimate of the basic salary you will get in your line of work.

That’s why students need to take their time when choosing careers and taking up loans. Too much debt is the kind in which you will need to pay more than 10% of your gross income per month.

Therefore, the less debt you incur the better. Debt is dangerous if it really strains you and even has an impact on your mental health.

Ways To Avoid Too Much Loan Debt

In as much as you will require to get a student loan, it is important to stay within your limits. Therefore, there are ways to avoid too much loan debt.

  1. Choose An Affordable School
    If you don’t have all the finances needed, it is crucial to choose an affordable school. Don’t choose a school that will require you to borrow too much. Also, try and check the financial assistance the school offers before you commit to it.
    Therefore, you can average the amount of money that you will require to raise before joining the school.
  2. Choose A School That Is Nearer To You.
    When choosing a school, it is important to choose one that is nearer. Even though you can still choose a school that is far off and live in the hostels you need to choose one that won’t lead to you taking up such a huge loan to pay for other expenses that you would have avoided. Also, if you will be living at home, ensure the travel expenses are not too much.
  3. Choose A School That Allows Easy Change Of Career Path.
    At times, you may feel that the career you chose is not appropriate and want to change it. However, some schools may have some restrictions on that.
    Therefore, you can check the school’s flexibility to prevent losing out on money that you used when pursuing a different course if it is non-refundable. Also, while there you can take extra credits to ensure you graduate sooner and save money on room and boarding. Just be wise enough!
  4. Just Borrow What You Need
    The funny thing about loans is that they are exciting to take as they feel like free money. However, paying up the loans is often the stressful part. Just borrow enough money for tuition, boarding room, and other needed school requirements.
    The more you take up, the more money you will need to pay. In addition, try and avoid private student loans that allow higher borrowing limits. Their interest may be higher with unfavorable repayment terms.
  5. Stick To A Reasonable Budget
    It is crucial to be disciplined and stick to a specific reasonable budget. However tempting it might seem, it is crucial not to take up any credit card loans that can be stressful. The incurred interest can be frustrating. Therefore, try and limit your expenses to a reasonable amount.
  6. Check For Other Financial Aids
    Before taking up any student loans, consider checking whether the school offers any kind of scholarships or tuition percentage help. This can help you estimate the amount of loan that you should take up.
    In addition, you can enroll in the work-study program to make it easier to earn some money while still pursuing your education.

Can You Do It Without Credit?

As much as it might seem hard to pursue your university studies without credit card loans or student loans, it is more than possible. As long as you get to cover all the expenses comfortably, getting a loan wouldn’t be the best option, especially a credit loan.

Moreover, when taking up loans, it is important to get a loan that will sustain you while in the university. It won’t be fair to take up a loan that will frustrate you after a while. Therefore, strive to budget and see the kind of money that you will need for all your expenses.
This also calls for enough research to ensure that you choose the right loan for your school years, and you won’t have to go back to make another loan application since the previous one isn’t enough.

You can also try to balance work and school, by working in the evenings to get some extra money for your other expenses. You will learn a lot when you get into the career world much sooner than expected.


You should now have a better overview of how much is too much student loan debt. The kind of course that you choose to pursue should also help you to know how much loan you need. If it is a lucrative course, then you are assured that after a while, you will be able to comfortably pay your loan within 10 years.

It can be frustrating to think about your pending loan. In as much as you are growing and will end up having some family needs to cater to, the student loan shouldn’t be something that keeps you frustrated.

Therefore, it is important to stay within your means. However, don’t limit yourself too much, since your college life may never be repeated, so you might need to enjoy all the stages while still checking your expenses. Be cautious of your expenses!

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