What Expenses You Should Cover With Student Loans

What Expenses You Should Cover With Student Loans

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U.S. News data show the average tuition and fees to attend a public, in-state school is around $9,716 for the 2018-2019 school year. The average in-state sticker price is 73 percent less than the average tuition and fees to attend a private college, which is $35,676; the average out-of-state tuition and fees among public institutions in 2018-2019 is $21,629.

College comes with many expenses. Not only must students pay tuition and fees to attend classes, but they need to cover living expenses, like room and board. In addition, there are other expenses, such as textbooks, supplies and transportation.

It’s important for students to know if they’re planning to use student loans to cover expenses, how much financial aid and student loans are available, what can be borrowed each year as well as what they can cover with these loans.

Here are a few considerations that students and their families should weigh when using students loans to cover college costs.

The Department of Education provides more than $120 billion in federal student aid each year to students who are paying for a college or career school education.

The vast majority of these funds are received in the form of student loans. To receive federal financial aid, students must complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA.

Financial aid packages awarded by colleges and universities may include grants, federal subsidized or unsubsidized direct student loans, or federal work-study. (more…)