Do not borrow more than what you can not pay back in a single year if you end up without a degree. Let this be the safety valve amount beyond which you should never borrow. There is always a possibility that you may end up quitting without completing education.
There may be some genuine reasons for the same. Further, you may find out that you are not cut out for the tough life of a student. In such a scenario, you should be prepared to cut your losses and move out.
Further, even if you complete your education, there is no guarantee that your degree will provide you the dream job required to repay all your debts without any problems. Always remember that a student loan is a debt and not a gift.
Most of us borrow high amounts of student loans on the assumption that the same shall be repaid with our high income jobs. However, the economy has slowed down today so you can simply forget the high salary.
Time For Tough Decisions
Your loan repayment will begin six months after you graduate and that is the time to take toug decisions.
It is true that student loans are available at low interest rates, however if you borrow a large sum of money, you may have to pay a high amount of interest irrespective of whether the rate is low on not.
Ask yourself whether it is essential to study out of your own state. Cost of education for out of state students is more than two or three times than the cost for other students. You have to pay high tuition fees along with cost of boarding, lodging, transportation, food etc. Find out the eligibility criterion for becoming an in-state student. If you are invested as an in state student after completing one year of education, just apply again the second year as an in state school to cut down on your education cost.