When funding your education, your should minimize your overall borrowing: here’s how. Grab a pencil, a calculator, the financial aid award information from your school, and follow these steps to run the numbers…

• What are your total college expenses? Check your award letter for the “total cost of attendance.” This will usually include tuition, room, and board. Add to this the cost of incidentals, such as books, travel, computer supplies, personal expenses, any rental expenses, etc. – that’s the number you need to cover.
• Who is paying what (and when)? Determine the role that parents and the student will have in borrowing, and figure out how much each will carry. What is your post-graduation game plan? Will the student take on more of the debt when they start working? Graduation and beyond may seem a long way away, but you need to start planning for it now.
• Subtract any “free money” items on your award letter – scholarships, grants, merit awards, etc.
• Subtract all of the money from other sources. Work/study, savings, summer job income, current income – and contribute as much as you can possibly afford. Include contributions from parents and student for this step. Parents, do not use your retirement savings to contribute here. You can borrow for college, but you can’t borrow for retirement.
• Subtract all other possible sources of cash. Remember to dig up old financial instruments, like savings bonds or CDs students may have been given when they were born. Subtract this number.
• Make budget cuts everywhere you can, and subtract the savings opportunities you find. Look for a cheaper cell phone service, don’t subscribe to the most expensive cable package, get cheaper haircuts, and nix the $4 latte. Live frugally and below your means, and you’ll be amazed how much you can save.

Keep in mind that your education is going to span several years – borrowing can really add up, so proceed with caution. And when it comes to student loans, remember to shop around!
Of course, don’t forget to hit the beach!