Choosing a College and Being Able to Afford It

For many high school juniors and seniors picking a college to attend is probably the most stressful part of high school. Well, that and worrying about whether or not you will have a date for the upcoming dance. So many factors come into play when making this important decision. Do you pick a school based on reputation? Do you select a school based on major? Is campus life and location important to you? Well, I've got another question you should add to your growing list: how much is this all going to cost by the time graduation arrives?

What's that? You never really stopped to consider the long term financial ramifications? You live your life by the "we will cross that bridge when we get there" mantra. Nowadays, with tuition costs on the rise and student loan availability at a premium your college selection is more important than ever. If you wait to cross that bridge you might find yourself leaping off it. Don't let your student loans spiral out of control. You'd be surprised at how easy it is for this to happen.

The stark reality is the vast majority of students wishing to attend college can not afford to pay out of pocket, even with the support of their parents(s). Consequently most families depend on student loans to help finance the cost of tuition each school year. Federal and private student loans are there for you, but may be with you MUCH longer than you had bargained for.

Federal Stafford loans are worth considering first. They offer a lower fixed interest rate than Parent Plus loans and most private student loans, but the downside is they have low maximum yearly allotment. College freshman are eligible for $3500 in subsidized Stafford loan funds, sophomores $4500, and for juniors and seniors that total rises to $5500. These amounts, while helpful, do not usually come close to covering the total cost of tuition at a private four year college.