Affording Private College

Cost of Attendance and Bridging the Aid Gap

It is no secret that private college has always been expensive. Many private four-year schools -- especially those with strong brand or name recognition -- charge higher tuition and fees every year, leading to greater total cost of attendance. This is taxing on both parents and students, leading to needless stress and drop outs due to uncertainty over their ability to fully finance educational expenses. Due to this constant growth in the cost of education, many families find themselves taking out a variety of different types of financial aid, including federal loans and private student loans.

In 2009, CollegeBoard¹ reported that the average jump in college tuition for private four-year schools was 4.4%, or roughly $1,100. By contrast, the average amount of awarded federal aid was estimated at $10,185. As you can see below, the average private four-year university cost $36,836 per year in 2009. Based on these figures, there is roughly a $26,700 aid gap to be filled by other forms of student financial aid.

So, why a private student loan?

Private student loans are financial security. You can take comfort in the fact that with a creditworthy co-signer, it is very possible to cover your entire cost of attendance, from tuition to books to rent (if you live off campus) with a competitive interest rate. This takes the stress out of school, and allows you to focus on the most important thing in college, your studies.

Apply for a Private Student Loan

Private loans bridge the gap between federal aid, scholarships, and total cost of education; they can be the right answer for a variety of student situations, including financing school independently and losing a job or income and needing extra help to pay for life during school.

They give you the flexibility to take out as much money as you need – up to your total cost of attendance – and use them as you need them… be it toward your tuition expenses, to pay rent, buy food, or even buy a computer for school. Simply put, it is a versatile tool to ensure that you are 100% financially covered going into college, so that affording college doesn’t keep you up at night.

¹ Data sourced from Collegeboard.com

More information about Private Student Loans:

If you are interested in discovering more about private student loans, check out our lender comparison tool and repayment calculator to gauge if a private loan loan is right for you. We also have a dedicated Financial Aid Forum that specializes in questions about student aid; we would love to hear from you and answer any questions.