The first rule of borrowing money is really simple: the more you borrow, the more you'll have to pay back. So, every prospective college student should get as much financial aid as possible in the form of free college money, money that never needs to be repaid, such as scholarships and grants. Go to SchoolSoup.com to search the world's largest scholarship database. It’s free!
After that, find out how much financial aid is available to you in the form of money that does need to be repaid, but at the lower, government-subsidized rates.
When you have that total, and your school’s "Cost Of Attendance" (COA), you’ll know about how much in personal student loans you'll need to borrow to fill the gap. Be aware, though, that the COA includes only tuition and fees, plus other narrowly defined education-related expenses. COA doesn't figure-in costs for books, transportation, computers, and other incidentals that you'll find yourself paying for out of pocket.
With a Loan to Learn Education Loan, students in four-year college programs, or who are pursuing advanced degrees, can borrow from $3,000 up to $50,000 a year in personal student loans, depending on their needs, to cover the amount not covered by financial aid.
But the bottom line is this: Borrow only as much as you need to get through college — and use what you borrow only for college.
Note: “Free" college money will lessen the total amount you need to borrow. Learn more at SchoolSoup.com.