Two programs can lead to similar jobs and very different debt. Before you enroll, put the numbers next to each other.
Key Takeaways
- Use net price, not sticker price, as the starting cost. Every college that takes federal aid must publish a Net Price Calculator.
- Add the costs schools leave out: books, equipment, licensing exams, and travel to clinical sites.
- Compare the estimated monthly loan payment with your starting monthly pay, using local entry-level figures.
- If the payment is a small share of pay, the debt is manageable. If it is large, look for a lower-cost program first.
Start with net price
Sticker tuition is rarely what you pay. Net price is what you pay after grants and scholarships that you do not repay. Federal law requires colleges that take federal aid to publish a Net Price Calculator on their websites. Run it for each program on your list, with your own income and family details.
Our guide to how to read net price explains what the figure includes and what it leaves out.
Add the costs that schools leave out
Budget for the expenses that do not appear on the tuition bill: books and supplies, uniforms and equipment, certification and licensing exam fees, background checks, and travel to clinical sites. For healthcare programs, unpaid clinical hours can also mean lost work income. Add these to net price to get a realistic total.
Run a simple payment test
Add up the total you expect to borrow. Estimate the monthly payment on a standard 10-year repayment plan. Then compare that payment with your expected monthly take-home pay using entry-level figures for your area, not the national median.
Example, with made-up numbers: suppose one program leaves you owing $8,000 and another $30,000. At the same starting salary, the first leaves far more room in the budget for rent, savings, and emergencies. Use your own figures, since loan rates and local pay change. For entry-level pay by field, see what associate degree graduates actually earn.
Know the repayment options
Federal loans include income-driven repayment plans, which set payments based on income and family size. Public Service Loan Forgiveness may apply to some graduates who work for qualifying government or nonprofit employers. Federal repayment rules change, so check the current terms on StudentAid.gov before you rely on any of them. Our student loan tool can help you estimate payments. The jobs these degrees lead to, ranked by pay, are on the high-paying associate degree jobs ranking. For the credentials that raise pay after graduation, see skills and credentials. For demand, see where associate degree jobs are hiring through 2035, and for what comes next, see career paths.
Common mistakes
- Borrowing for living costs without a monthly budget.
- Choosing a cheap program that you are unlikely to finish. A low price does not help if you do not complete. See what completion rate really means.
- Skipping the licensing check for your state.
- Treating national median pay as a guarantee of your starting salary.
All guides|Source figures: U.S. Department of Education College Scorecard, unless a section says otherwise.