Wed, Jul 20, 2022 11:30 AM

College debt is rising dramatically every year due to students and parents being forced to take out college loans to cover the funding gap that often exists after a college issues their financial aid offer. The problem is many families make the mistake of taking on too much debt instead of having other affordable options on the table. I understand it is hard to tell your student NO after they have put a ton of effort into their high school education with all those extra curriculars they have done with the hopes of getting into their top college, but if taking out significant debt is the only way your family is going to be able to pay for college, then please STOP. Don’t put your student or yourself into this difficult situation.

When it comes to the maximum amount of loans a student can take out, during their freshman year, it is $5,500, sophomore yar $6,500, junior year $7,500 and senior year $7,500 for a grand total of $27,000 in their own name, without a co-signer, job, or credit score. The only exception to this maximum amount is if you, mom and dad, apply for a parent PLUS loan and are turned down. In this case, the student can receive up to an additional $4,000 the first two years and $5,000 the last two years to help pay for college. But that is it!

More often than not, this still may not be enough money to pay the entire funding gap of a college for one year. This often leads students to look at taking on private loans, if your intent is that you son or daughter is going to cover 100% of their college education. Please remember, you will need to be to the co-signer on these private student loans.

A great way to avoid excessive debt is to have your student apply for as many scholarships as possible. Be sure to do your research to figure out what scholarships would best fit then and then have them proactively go after them. By going through my NEW College Financial Aid and Scholarship Course: Show Me Where To Find The Money, you can run your numbers AND help your son or daughter pick the right colleges to apply to. My course will help your student have the best chance of receiving scholarships to eliminate unwanted student loan debt!

Still confused on how your family is going to pay for college, please click below to schedule a meeting with me, Dan Bisig, today!

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