Deciding How Much to Borrow

Deciding How Much to Borrow

Deciding How Much to Borrow

When you are getting ready to start law, graduate or professional school, keep in mind: the less you borrow now, the less you will have to repay later! While that sounds simple, it is not always easy to follow when you are facing a large bill to go to school. Some early planning can make all the difference.

Your school has already calculated the expenses that a student is likely to incur during the academic year. This is called the cost of attendance (COA). COA varies from school to school and includes tuition and fees, books and supplies, and living expenses. Check your school’s website for more information.

The cost of attendance is a guideline provided by your school. It is not what you NEED to spend. Always borrow only what you actually need which may be less than the maximum amount for which you are eligible. Borrow less now… repay less later.

Why borrow less?

If you borrow student loans to pay for school, you are, in essence, paying for it with your future income. The challenge is knowing if you’ll have enough income to repay your loans and pay your other recurring expenses like food, clothes, housing and the occasional night out.

The key to reducing what you have to repay is minimizing what you spend while in school.