For years you have been planning to go to college and have been working hard to maintain a high GPA, as well as save whatever money you can to help offset the costs of college. Luckily, you have been offered financial aid to your state school of choice, but you are still wondering whether or not you will need to secure a student loan.
The first thing to do in that situation is to build an overall budget of upcoming expenses reflecting any financial aid money or savings that can be used to offset the expenses of pursuing your degree. Even with financial aid, it may not be enough to cover the full tuition amount and not to mention your living expenses - so an additional student loan may be needed.
Financial aid is granted in a couple of different ways. The first, is merit-based student financial aid, which is given as rewards to those students with high academics, good athletic involvement, or artistic skills. These grants can either come directly from the college or university you are considering and is also awarded by outside organizations. This money is given without any review of your financial need. The aid can be full or partial scholarships and other incentives, thus making your student loan a possibility.
The second, is need-basis financial aid. This type of aid is granted on a need basis after considering the financial resources of the student and the income level of the student's family. So you can fill out forms for this type of aid or apply directly online - additional paperwork may be needed if you are attending a private institution. Based on the amount of aid offered, you may need to seek out additional student loan opportunities.
Only you can determine whether or not you will need to supplement your financial aid package with additional student loans. After all, you'll be the one using that money. The best way is to lay down a budget on paper or excel, make a column of checks and balances, and then take it from there.
