According to the College Board, borrowing to pay for college generally makes sense because education builds earning potential.
The typical college graduate earns about 73% more than the typical high school graduate, and the higher pay covers the cost of four years of tuition and fees by the time the graduate is 33 years old.
The higher cost of private colleges adds an extra burden. But by age 40 students typically have covered those costs too.
However, debt levels might be too high if students are not likely to complete college or if they plan a career in a low-paying profession.
| If you make this much per year | Then you can handle this much debt* | Annual payment | Portion of income |
| $10,000 | $0 | - | - |
| $20,000 | $7,680 | $1,060 | 5% |
| $30,000 | $22,160 | $3,060 | 10% |
| $40,000 | $36,640 | $5,060 | 13% |
| $50,000 | $51,120 | $7,060 | 14% |
| $75,000 | $87,330 | $12,060 | 16% |
| $100,000 | $123,540 | $17,060 | 17% |
| $150,000 | $195,950 | $27,060 | 18% |
| *Interest rate at 6.8% |
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