Minimizing the amount you need to borrow in student loans is the best way to save money on college. The best way to do that is by maximizing the financial aid you receive.

But what happens when the financial aid you're offered just isn't enough? Let's go over some tips to make sure you're receiving every cent of financial aid you deserve and some alternative strategies to drive down the cost of your degree.

Contact the University 

When you’re accepted to college, the financial aid department will send you an award letter detailing how much financial aid you’ll receive. That includes internal grants and scholarships, federal loans, and work-study. 

If you think you qualify for more aid, you can contact the university to appeal the award. For example, if one of your parents recently lost their job, you could state that your family’s income has drastically changed since you applied to college. Since the COVID-19 pandemic began, more universities have been willing to approve these requests, so it doesn’t hurt to ask. 

Double-check Your Financial Aid Forms 

Sometimes, the reason you haven’t received more financial aid is due to a mistake on your Free Application for Federal Student Aid (FAFSA). For example, if your parents listed more assets than they actually have, you might receive less aid. 

If you notice a mistake on your FAFSA, you may be able to resubmit a corrected application. You’ll have to log in to your Federal Student Aid account and click the link that says “Make FAFSA Corrections.”

Not all mistakes can be rectified by submitting a new FAFSA. In that case, you’ll have to reach out to the college financial aid department and explain what happened. 

The CSS form is similar to the FAFSA and required by some private colleges. If you need to fix the CSS form, visit your CSS dashboard and click the “Correct Your CSS Profile” link.

Apply for More Grants and Scholarships 

If you’ve maxed out your federal student loans, double-checked the FAFSA and asked the university for more aid, the next step is to apply for more grants and scholarships.

You can apply for scholarships on third-party sites such as Fastweb.com, Scholarships.com and Bold.org. Use Google to search for scholarships that fit your unique skills and interests. For example, if you’re a member of the college marching band, look for scholarships designed for band members. 

Contact the school’s financial aid department and ask if you’ve been considered for all its scholarships. Many schools will automatically put your name in the running for all possible awards, but some may require a separate application.  

Maximize Federal Student Loans

Before you take out private student loans, make sure you’ve maxed out your federal student loans. Federal student loans have more income-driven repayment options, longer deferment and forbearance periods, and more loan forgiveness programs than private loans.

If you’ve reached the maximum amount of Direct Loans and are a graduate student, you can take out Direct PLUS Loans or Grad PLUS Loans. The annual limit for Grad PLUS Loans is the annual cost of attendance minus any other financial aid. 

Ask Your Parents to Take Out Loans

Undergraduates are limited to taking out $31,000 in student loans. Once they’ve reached that limit, they can use private student loans, or their parents can take out federal Parent PLUS Loans to make up the difference. 

Parents can borrow up to the annual cost of attendance minus any other financial aid. The loan will remain in the parent’s name unless they choose to refinance the loan in the child’s name later on. 

Parents have access to fewer income-driven repayment options and loan forgiveness programs than students, so they should verify that they can afford the monthly payments before taking out these loans.   

Take Out Private Student Loans

Juno offers both undergraduate student loans and graduate student loans for students who need more funds to pay for college. The annual maximum amount is the cost of attendance minus any other financial aid.  

There are five-, seven-, 10-, 12- and 15-year terms for both undergraduate and graduate students. The longer the term, the lower the monthly payment. But when you choose a longer term, you’ll end up paying more interest over the life of the loan. Shorter terms will have higher monthly payments but less total interest paid. 

Juno offers fixed-rate loans and variable-rate loans for both undergraduate and graduate students. The monthly payments on a fixed-rate loan will be the same for the whole loan term, while payments on a variable-rate loan will change as overall market interest rates change.  

Undergraduate Student Loans

Borrowers will likely need a co-signer to be approved for undergraduate student loans unless they already have steady employment and a good credit score.  

Fixed-interest rate loans range from 2.99% APR to 11.78% APR, and variable-rate loans range from 0.99% APR to 10.44% APR.

Graduate Student Loans

Graduate students may not be required to add a co-signer to their application, but including one can help them get a lower interest rate. The co-signer can be anyone they know, including a parent, relative or close friend. The co-signer just needs to have a good credit score and stable income. 

Fixed-rate loans range from 2.99% APR to 6.14% APR, and variable-rate loans range from 0.99% APR to 5.77% APR.

All rates accurate as of Nov. 2, 2021.