Final answer:
To reduce your total loan cost according to FAFSA guidelines, consider applying for grants and scholarships, maximizing federal student loans, participating in work-study programs, creating a budget, and making timely loan payments.
Step-by-step explanation:
To reduce your total loan cost according to FAFSA guidelines, there are several strategies you can consider:
- Apply for grants and scholarships: Unlike loans, grants and scholarships do not need to be paid back, reducing your overall loan burden.
- Maximize federal student loans: If you need to take out loans, start with federal student loans as they typically offer lower interest rates and more flexible repayment options.
- Consider work-study programs: These programs allow you to earn money while in school, reducing the amount you need to borrow.
- Create a budget and minimize expenses: By carefully managing your finances and cutting unnecessary expenses, you can reduce the amount of money you need to borrow.
- Repay loans on time: Making timely loan payments can help you avoid additional interest and fees, ultimately reducing your total loan cost.