How much money should you borrow?
First, figure out how much college will cost and how much you can contribute, like scholarships, savings, and federal student loans. If you still need money, a private student loan can help.
Create your plan for borrowing and repaying
Estimate your expenses for the school year
You can estimate some of your expenses using your school’s cost of attendance (COA), usually found on your financial aid award letter or the school’s website.
What’s typically included in your COA?
- Tuition
- Fees
- Housing and meals
- Books and supplies
- Travel
- Miscellaneous expenses such as a laptopfootnote 1
Depending on the type of loan, your school may certify your loan amount. This means that your school confirms the loan amount to make sure you don’t borrow more than the cost of attendance.
Calculate the amount you need to borrow
Taking out the right amount can make managing your debt easier after school. Once you know your costs, subtract what you’ve got from scholarships, grants, work-study, federal loans, and savings. What’s left is the amount you still need to cover for college.
Only borrow what you can pay back
Take the time to figure out how much you might be able to afford in future monthly student loan payments. You can compare your potential future income with an estimate of your monthly payments.
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