Accepting Financial Aid 
First , accept the financial aid funds you don t have to pay back. When your school financial aid office sends you an aid offer , they ll ask you to indicate which financial aid you want. Look carefully at your options and make an informed decision. 

Choosing the Best Financial Aid to Accept 
Keep the following in mind when you get an aid offer and are deciding which aid is the best to accept : Free money first e.g., scholarships, grants Earned money second e.g., work - study Borrowed money last e.g., federal student loans Start from the top of this table and work your way down : Many schools also offer tuition payment plans a monthly interest - free payment toward tuition. This type of plan may help reduce the amount you need to take out in loans. Ask your financial aid office if such a plan is available. 

Deciding Which Student Loans to Accept 
If you must accept loans , accept the ones with the most favorable terms and conditions. Usually , that means choosing the federal student loans offered to you. If you are considering getting a state loan, school loan, or private student loan , you should learn about the differences between federal and other loans. If you have any questions or don t understand what types of loans are in your aid offer , contact the school. Make sure you understand what you re accepting and the repayment terms. Borrow only what you need! If your living expenses are not going to be as high as the amount estimated by your school , you have the right to turn down the loan or to request a lower loan amount. In the aid offer , your school will tell you how to do this. To determine how much loan money to accept, make a list of your college and living expenses and the resources you ll have available to pay them ; in other words, make a budget to help ensure you borrow only what you need. Remember: If you don t accept the full amount of the loan you re eligible for , you can increase the amount later. 

Informing Your Sc

user: I need some guidance on what financial aid I should accept.

assistant: I'll be happy to help you with this. To start, you should always accept financial aid funds that do not have to be paid back.

assistant: Have you received an aid offer from your school financial aid office?

user: Yes, I have.

assistant: Excellent. It's very important to carefully review all your options, so that you can make an informed decision.

user: What are some things I should be thinking about when choosing what aid to accept?

assistant: Your number one goal should be to accept the aid that best fits your needs. 

user: How do I know how much loan money to accept?

assistant: You will need to make a budget that covers your college tuition and living expenses, so that you only borrow what you need.

user: How do I decide which loans I need to accept?

assistant: Your goal should be to accept the loans with the most favorable terms and conditions. These are usually your federal student loans.

user: I've heard that some schools offer interest free tuition payment plans. Is this true?

assistant: Yes, it is. This type of loan can be very beneficial, because it allows the borrower to reduce the amount they will need to take out in loans. You should ask your financial aid office if this plan is available to you.