Wed, July 19, 2023 11:30 AM

College debt is rising dramatically every year due to students and parents being forced to take out 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 out too much debt instead of having other affordable college options on the table. It is hard to tell your student NO after they have put a ton of effort into excelling in high school and doing all those extra-curricular activities with the hopes of getting into their top college. If taking out significant debt is the only way your family is going to be able to pay for college, then please think twice before you put your family into this difficult situation.

Here is a list of the maximum federal college loan amounts undergraduate students can take out:

Freshman year: $5,500,
Sophomore year: $6,500,
Junior year: $7,500
Senior year: $7,500

For a grand total of $27,000 in your student’s own name, without a co-signer, job, or credit score.

The only exception to this maximum amount is if you family applies 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. Unfortunately, any additional private college loans will require a co-signer.

A great way to avoid excessive debt is to have your student pursue affordable colleges and apply to private scholarships as well. Be sure to do your research to figure out which scholarships are the best fit based on what they have accomplished academically and participated in during high school.

Need some extra guidance and help, take a look at my College Financial Aid and Scholarship Course: Show Me Where To Find The Money, where you can run your numbers AND help your son or daughter pick colleges that will fit your family budget.

Still confused on how your family is going to pay for college; schedule a meeting with me today!

Need help with the College Admissions Process, Finding Scholarships, or with Financial Aid?

Schedule your Meeting with Dan Bisig – TODAY!