The first college bill arrives in the mailbox and it is starting to sink in.  College is expensive and financial aid often comes in the form of federal loans rather than scholarship or grants.  Loans, as we all know, accrue interest and need to be paid back after graduation.  Not to mention that pesky gap. 

The gap is the outstanding amount of the tuition bill that has not been covered by scholarships, grants or federal student loans.  The gap can cause alarm for students and parents alike because it can be a large sum of money and it is due fairly quickly as semester one of freshman year approaches.  Colleges expect that the tuition bill is paid or arrangements have been made to pay the bill before you can move into your dorm and begin your classes.  Once all federal loan options have been exhausted, many families turn to private student loans to help cover the remaining costs.  As college is a four year investment, many students find themselves in the position of graduating with a degree but also a mountain of debt.  So the question is…how much is too much? 

This CNN Money article discusses private loans and increasing student debt.  The idea is, if you need to utilize private lenders to satisfy the gap in your tuition bill, do your homework. Paying the interest on a private loan while you are in school is a good start. We have compiled a list of private lenders here at NHHEAF to help make the process that much easier. 

Give us a call at 1.888.7.GRADUATE x119 to make an appointment to come in and discuss funding options beyond financial aid.

Best,

Kerry