When determining how much money to borrow in loans to pay for your higher education, which of the following items should not be considered?

When determining how much money to borrow in loans to pay for your higher education, which of the following items should not be considered?

A) The amount of money that your family can contribute each year

B) the number of years that you will be in school

C) The interest rate of the loan

D) The amount you will still need after financial aid is awarded

The Correct answer is D) The amount you will still need after financial aid is awarded

Focus first on how much you will still need after financial aid for each year you are in school and how much your family can contribute. Pay attention to interest rates after you know how much you need to borrow.

What is a loan?

A loan is when you give someone money or something valuable, and they promise to give it back in the future along with extra money called interest. It's like lending a friend your toy and they promise to return it with a little extra gift. Loans can be for a certain amount or a flexible amount up to a limit. There are different types of loans like ones for personal use, business purposes, ones where you give something valuable as a guarantee, and ones where you don't give anything as a guarantee.