2. The average earnings of the college educated are $2.1 million and this figure is $1.2 million for high school graduates. Still, considering one takes out a Federal Perkins Loan (current interest rate of 5% per year), and borrows the maximum amount permissible, which is $40,000, the total repayment you would make over a 10-year term would be somewhere close to $51,000.

3. Contrast this against average salaries of college graduates. A nursing job would get you $38,788; Chemical engineering $53,659.

4. Salaries are increasing steadily at a healthy pace from 11.2% for elementary school teachers to 5.3% for civil engineers and 2.1% for chemical engineers.

How does it all add up? Considering again the Federal Perkins Loan, which allows you to pay back the entire amount with interest in 10 years, it will take away 1 – 2 years of your starting salary but spread over a 10-year term. The monthly payment would not be over $430 for the whole term, while your salary keeps going up.

How Can You Plan Your College Education Loan?

Well, how can you plan for the loan? Before you decide on a loan amount, you need to assess your different options: