Final answer:
Based on the principle that student loan debt at graduation should be less than your annual starting salary to ensure manageability, $33,000 in student loans would be a reasonable amount for someone expecting to make $40,000 in their first year out of college.
Step-by-step explanation:
When considering how much in student loans is reasonable based on an expected first-year salary, a vital rule of thumb is that your total student loan debt at graduation should be less than your annual starting salary. This ensures that you will be able to pay back your debt within a reasonable time frame without it overwhelming your budget.
Given the average costs of college in recent years, which can surpass $25,000 annually, and the significant rise in student loan debt, which has surpassed $1.3 trillion, it is crucial to keep student loan borrowing within manageable limits. If you expect to make $40,000 in your first year out of college, the reasonable amount of student loans would be one that you can repay on a starting salary without undue hardship, ideally less than your annual salary.
Assuming that the expected salary is $40,000, a loan amount of $33,000 is the closest to this threshold out of the given options and would be deemed a reasonable amount. A $33,000 loan at a typical interest rate and repayment period would result in monthly payments that are a manageable percentage of a $40,000 salary, although certainly requiring some budgeting and sacrifice. For an expected annual salary of $40,000, a student loan amount of $33,000 is reasonable to manage within a monthly budget although it would necessitate some financial sacrifices.