You need to pay for college, and you know that getting your education is the smart thing to do. But student loans are a tricky business. You may find yourself running into all sorts of problems and questions. You may be annoyed by the credit counseling that the schools offer at the beginning and ending of your college career, but it is important to pay attention to that advice. You should apply for all the aid that you can receive. You can apply for Pell Grants in the summer of the next year. You will not qualify you should apply because it starts the process for applying for a federal student loan even in case you know it. You can apply for scholarships in your community, at your school, through your summer job and online. Until you start school you should spend at least an hour a week looking and applying for scholarships.  Consider working to pay for school. Many jobs will reimburse you for taking classes related to your job. UPS has an excellent program for college students.  You can help pay for school through scholarships and other grant even in case you do not qualify for a Pell grant.

Before you take out a student loan

It may be difficult to estimate your costs in case this is your first semester at college. ou may want to go off of the costs estimated by the university, but many can live on a much lower amount. You should budget in your rent, utilities, and fun money. Do not forget tuition and the costs of books and transportation. This budget will help you to determine how much you really need to borrow. You do not want to cut it too close, but you do not want to live too extravagantly either. You can do this by multiplying your budget by the number of months that you will be in school. Next you should add in the cost of books and tuition.  Don’t forget to add in the entire year’s worth of tuition and books in case you are planning for the whole year. Then subtract from that amount the money that you have received from grants, scholarships and any savings you may have. The amount that you have left is the amount that you should borrow. Do not take more than you need. You do not need to accept all the money that you qualify for. The Stafford is a great loan. The government sets the interest rates. You should borrow subsidized, then unsubsidized. Generally this is enough to meet your needs for an in-state school tuition. It is best to go with a federal loan.  You begin to get into private loans in case you are attending a private school or going to medical school. You should be careful with the amount that you borrow through private lenders. The interest rate is much higher and they should only be used as a last resort. So you have a big choice when you start college.