<p>Here’s the hierarchy of best to worst cast scenarios (for civilians, not veterans):</p>
<ol>
<li>No loans (cash or scholarships or combination of the two).</li>
</ol>
<p>Believe it or not, this is how about half of Columbia’s undergraduates do it. Whether their folks can fork over the cash, they’ve won heaps of scholarships, or whatever. Many, many lucky students don’t need or don’t choose to take loans.</p>
<ol>
<li>Federal and state student loans (with cash or scholarships or a combination).</li>
</ol>
<p>Federal loans offer the best rates, best repayment terms, and most flexible repayment schedules. If you’re a New York state resident, you may qualify for the Tuition Assistance Program (called TAP by most). If you’re NOT a NY resident, don’t even try to change your residency. </p>
<p>People who become state residents are not eligible for TAP if they’re students at the time they change their residency. </p>
<ol>
<li>Private loans (with cash, federal/state, scholarships, prayer).</li>
</ol>
<p>There’s not many private lenders in the market right now. Since the 2008 financial crisis the majority of all lenders shut down their student lending businesses. What’re you left with? A handful of private lenders with terrible, inflexible terms and nightmarish rates and fees.</p>
<p>If you have to take private loans, take out the kind where you can pay interest while in school. It’ll help mitigate the total disaster that may await in your post-grad years.</p>
<hr>
<p>I recommend working as much as possible and maxing out on the federal / state loans. Hunt for scholarships relentlessly. Like NOW. Reach out to alumni and ask how they did it. Also, I recommend NOT GOING TO COLUMBIA unless you’re headed for a job in an industry where you can reasonably expect to service your debt in the first decade after graduation.</p>
<p>Finance, consulting, law, etc. You get the idea.</p>