Your major can affect how much your loan payment is

College grads had an average of $29,200 in college loans – a record in the United States. That’s up 2% from the 2017 average of $28,650. Based on data for the Class of 2018 for those with bachelor’s degrees, Institute for College Access & Success

Ever wonder how your monthly student loan payments might stack up next to someone who graduated with a completely different major?

The range can be significant – starting at $406 a month in the retail industry all the way up to $685 a month for those working at private hospitals and other companies in the social assistance industry.

The averages are based on data released by Fidelity Investments and give a glimpse of how some fields can leave employees burdened with more student loan debt than others.

The figures – which are higher than other studies – are based on information from nearly 30,000 users of Fidelity’s Student Debt Tool. Those people may be more likely to take the time using the tool exactly because they’re overburdened by college debt.

The tool is widely available at major companies where Fidelity is a record keeper for the 401(k) plan. The tool is available online to the general public, too, at www.fidelity.com/studentdebt.

“Here’s a snapshot of people looking for help,” said Asha Srikantiah, head of the student debt program for Fidelity Investments.

College graduates had an average of $29,200 in college loans – a record in the United States – based on data for the class of 2018 for those with bachelor’s degrees, according to the latest report by the Institute for College Access & Success. That’s up 2% from the 2017 average of $28,650.

Graduating with $35,000 in college debt could amount to a $371 per month payment under a standard 10-year repayment plan, assuming a 5% interest

rate. That’s just a tad lower than the average car payment for a used car.

You’re not alone if you’re looking at $400 or $500 per month for student loan payments, according to the Fidelity data. The report showed:

❚ Average monthly student loan payments below $500 are being paid by those working in transportation ($413), real estate ($434), business management ($446) and manufacturing ($465).

❚ The monthly payment jumps all the way to $487 a month for those in information services.

❚ Fields that show average monthly student loan payments above $500 include professional scientific and technical services ($543) and higher education, such as those working at colleges and universities ($563).

To be sure, the average payments listed via Fidelity are considerably higher than overall averages nationwide. The typical student loan payment falls between $200 and $299 a month, according to data from the Federal Reserve Report on the Economic Well-Being of U.S. Households in 2018.

Typically, a general guideline is that you don’t want to owe more than what you can make that first year out of college. “If total debt is less than annual income, you should be able to repay your student loans in 10 years or less,” said Mark Kantrowitz, publisher and vice president of research for Saving forcollege.com.

High monthly payments, of course, cut into one’s ability to save money or borrow for something else.

When you’re looking at a $450 per month student loan payment, the last thing you want to do is go out and take out a new car loan. And your ability to save for the future – or buy that first home – may be hindered by a big college debt burden. Many people delay contributing to their retirement savings plans – and many may even take out loans against their 401(k) plans.

Roughly one in five college loan borrowers who used the Fidelity tool reported contributing nothing to their 401(k) plan. And nearly one in seven reported having a loan outstanding against their 401(k).