Student debt can put a damper on one’s ability to obtain wealth. It pays to plan to save as much as possible ahead of time and lessen the burden, supplementing with more attractive federal loans, scholarships, grants, and work-study programs before tapping higher-cost private loans.
3)Reduce your Expected Family Contribution (EFC) in legal ways.
Parents may want to consider private loans if they borrow above their contribution through their income and savings.
They are not all need-based.
There are several federally sponsored loan programs for undergraduate students:Stafford Loans are among the most common, desirable, and low-cost loans at fixed 2.75% interest rates offered directly to students rather than to parents, ranging from $5,500 to $12,500 per year, gradually rising after the first year.
It is always a good idea to challenge your initial financial offer via an appeals process or a professional judgment process, especially if there are circumstances that occurred after the submission of your financial aid application.