“When I saw what different schools were saying I could get in financial aid, I was surprised. The amounts they were offering in student loans was really a lot. That seemed good, because I know I’ll need loans to go to college. But I also know that with student loans, you have to pay everything back, plus interest payments – and I don’t want to borrow more than my family and I could afford.”

College Money Matters Responds

It’s good to first figure out what you (and your family if they’re helping pay for your college education) can comfortably afford in total loans and monthly payments before agreeing to borrow any money from any source.

Here are some things you can do to help make sure your college education doesn’t weigh you or your family down with too much debt:

1. Remember that Federal Loans tend to have a lower interest rate, but for a student who's considered a dependent on a parent or guardian's tax form, there's a maximum for each year of college. Those numbers: $5500 for the freshman year, $6500 for sophomore, $7500 for junior and $7500 again for the senior year. Students who take longer than 4 years may qualify for up to $3000 in the fifth year.
2. It’s a good to avoid borrowing any more than the Federal maximums, because you are likely going to have to take out loans every year you’re in school. That can really add up over four years (or more).
3. Your financial aid package may include something called Parent PLUS Loans. With this option, your parents can borrow the money and give it to you to pay for college. However, it's important that they don't borrow more than they can handle. This page on College Money Matters discusses Parent PLUS College Loans in detail.
4. Whatever you do, please try not to borrow from any private student lenders. And always be sure to keep your borrowing in line with your career expectations. You'll find some helpful information on that topic here.

5. If you still come up short, check out this page:  “When the college you want costs more than you have.”