Student debt is nearly unavoidable with the cost of tuition these days! If you're planning on college regardless of the cost, however, it's important that you plan for the debt you're about to incur. Watch our Personal Finance 120 video about planning for student debt to learn more!

Transcription: Hi, I'm Carly Cherry and welcome to personal finance 120, information from managing your financial life in about two minutes. Today, we're going to be discussing the student loan debt: How you can plan for it and how you can repay that debt after your education is complete. When young people think about college, they rarely think about the debt they'll have to repay afterwards. Fortunately, there is a way to find out if you're taking on too much debt. Typically, college websites list the cost of tuition, books, and other school fees. They might not list the other costs you'll incur while living on or off campus. Your first step is to create a monthly budget for your living expenses outside of the cost described by each college you're interested in. If you're a parent, it isn't wise to contribute more to your child's education then you currently do to your retirement fund, or mortgage payments. It’s okay to tighten your budget, but don't shortchange your retirement. There are no scholarships for that. The toughest calculation, but perhaps the most necessary, is to determine what the student’s income will be in the first few years after college. Websites like salary.com can help you identify what a particular occupation will pay and it lets you know how that salary could change depending on where you live. Why is this important? Well, it would be tough for somebody with seventy-five thousand dollars in student loan debt to make their payments on a starting teacher salary, for example. A good rule of thumb is to keep student loan payments under fifteen percent of your monthly take home pay. That also means plotting a full budget for those post college years, which will help you know what you can afford for an apartment. If you've already started your research on student aid, you know that there is an abundance of loans, scholarships, and aid for you. It’s important for you to pay attention to the requirements of each. A loan such as the direct subsidized Stafford loan is only available to students with financial need, the direct unsubsidized Stafford loan, however, does not require you to be in financial need to apply. Depending on which student loan products you choose and your personal situation, your repayment options will vary. There are already a number of choices available for student loan repayment and more are being added as the federal government tries to deal with this problem. Current options include deferment and forbearance (if you need a temporary break from your payment schedule), and several plans that are based on your income, family size, and occupation. There are also loan cancellation options to suit some very specific circumstances, and a federal loan rehabilitation program that lets you bring defaulted loans current. Your college will conduct entrance and exit counseling about your federal loans, so pay attention. Your money and post college lifestyle will be at stake. If your student loans are already in repayment and you'd like to know more about your options, you can call one of Cambridge's counselors to discuss them in detail. That number is 888-661-7910. That’s all we have for today on your student loans. Don’t forget to check us out on social media for more videos, articles, and tips to help you with your financial needs. Until next time, I'm Carly Cherry for Cambridge Credit Counseling.