As a general rule, most financial aid professionals recommend that your educational loan payments not exceed 8% of your projected monthly income after you graduate, although others believe loan payments of up to 15% of your future monthly income may be feasible. Check the Occupational Outlook Handbook to see what your yearly income is likely to be in your chosen career path. Then use the formula below to determine the maximum recommended amount for your monthly loan payments.

How Much Should I Borrow? Example: David is a first year student who is studying to be an accountant. He looks up his potential earnings in the Occupational Outlook Handbook, and learns that in 2006, the annual salary with a bachelor's degree is $46,718. David then calculates his recommended maximum indebtedness by using the Debt Salary Wizard. David should plan on borrowing no more than $27,064 for his four years at college giving him a standard monthly repayment of $311.