Calculate the school-year gap before borrowing.

Start with the aid offer, not a loan advertisement

Compare each school's cost of attendance with grants, scholarships and other support you can actually use. Distinguish money that does not need repayment from loans. Work-study is earned through work rather than automatically available as a tuition deposit.

Build the remaining gap for the academic year and consider later years too. A first-year payment that seems manageable may sit alongside additional borrowing before graduation. Review federal eligibility with the school before evaluating private offers, including their repayment flexibility and co-signer obligations.

Other arrangements to compare

Federal student loans

Review the school-based federal process and the difference between subsidized and unsubsidized borrowing.

Private student loans

Compare lender-specific rates, co-signer terms and the treatment of payments during school.

Repayment schedules

Use the installment guide to understand payment frequency and total interest once repayment begins.

Documents and practical checks

• Gather the school's aid offer, tuition and living-cost estimates and available savings.
• Check the award year, enrollment assumptions and whether aid must be renewed.
• Ask when each source of money will arrive and how any living-expense refund is handled.

Should I count loans as a discount on college costs?

No. Loans finance a cost and must generally be repaid with interest. Separate grants and scholarships from borrowing in every aid offer so you can see the actual price and the future debt.

Should I borrow the entire amount offered?

Start with the remaining cost after other resources and compare later-year needs. You may be able to accept less than offered. Ask the school how changing the amount affects disbursement and any remaining bill.

BorrowCompass provides a guide to this topic at education loan upfront fees vs ongoing fees. Review current provider terms before making a borrowing decision. BorrowCompass does not issue loans or guarantee approval.