Student Loans for College

Determine what student loan amount is enough

The question often comes up during the college application process: how much will I need to borrow in student loans to pay for it all? The amount of your student loans for college depends on how much your family has saved for that purpose, how much financial aid you qualify for, how much money you can find in grants and scholarships, and more. But the good news is that established formulas will help guide you to the right answer.

Those formulas are encompassed in the singular Free Application for Federal Student Aid (FAFSA) process, the process which governs all student financial aid. Using the financial information from the FAFSA, your family will be assigned an Expected Family Contribution (EFC). That number will tell you how much your family will have to come up with to cover your overall educational costs for that year. The gap between what you already have saved and your EFC, represents the amount that must be borrowed for college. Bear in mind that the total cost of college is more than just tuition and room & board. It includes such elements as books and lab fees, transportation costs, laundry, and a host of other smaller items that collectively add up.

Your school of choice must first certify that the amount being borrowed in student loans for college is in line with the tuition, room and board and other costs accrued. The money you will borrow for college will be sent directly to the school rather than to the student or their parents.

Remember these questions as you think about student loans for college:

• What effect will borrowing money for college have on our other family priorities, financial and otherwise?
• When will these repayment commitments kick in?
• What are my options for deferring repayment in case of now-unseen financial hardships?
• What effect will the accumulated interest have on my ability to repay student loan amounts?

Naturally, you should also be aware that by taking on this debt, you have made a legally binding pledge to repay it. The extent to which you do so faithfully can and will affect your credit standing for years to come.

Learn more about affordable student loans for college from Charter One

Get helpful information about affordable options to borrow for college, such as our Charter One TruFit Student Loan™. If you still have questions, just call a student loan specialist at 1-800-721-3969, and they'll help walk you through the process.