There are a few things you need to know about student loans if you are planning to use them as one of the ways you’ll be financing your degree at culinary school.

There are two general types of student loans, and these are federal student loans, or loans that are backed by the federal government, and private student loans. You need to know that federal student loans are much better for the borrower than private student loans. Private student loans are much more likely to get a person into serious financial problems in the future. Culinary students and students in any field of study would do well to avoid private student loans completely.

You need to be aware that student loans have gotten many people into serious financial difficulty, and you need to avoid this happening to you. You cannot just assume that you will earn enough to easily pay back your student loans and that all will be well. Many people borrow too much money and end up being overwhelmed by student loan debt. And remember, student loans cannot be discharged in a bankruptcy proceeding, so even if you are forced into that option, you will still be required to pay back your student loans. Don’t ever let your student loans go into default. If you do that you will be assessed very large penalties and collection fees.

For financing culinary school, how much student loan debt is too much? You should only borrow up to what one year of your starting salary is likely to be. You should speak with the financial office at your school and see what kinds of starting salaries their graduates have earned. And you need to be realistic. You cannot just assume you will start with a great job in a 5 star resort as a prestigious sous chef, for example. Another rule of thumb is that when you have finished school and start paying off your student loans, your monthly payments should not exceed 10% of your earnings. Beyond that you will probably find yourself living on a budget that is too tight.

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