The ‘Funding Gap’ Explained
The ‘funding gap’ is the extra money that you will need for school after all your other sources of funds have been used. You should first use your federally-subsidized loans, scholarships, grants, savings, parental assistance, and any other source of income before getting a SnapLoan.
Most students and their parents already do this, and after those funds have been used, they still realize that most times there is some leftover amount of money remaining that still needs to be paid. This is where SnapLoan comes in.
As an example – Let’s say your funds include the following:
- Subsidized Federal Loan – $16,000
- Scholarship – $12,000
- Parental Assistance – $5,000
- Savings – $3,500
- Part-Time Job – $1,800
This totals to $38,300. Now, let’s add up the costs of attending school:
- Tuition – $32,000
- Room & Board – $6,800
- Meals – $2,400
- Books – $1,100
- Miscellaneous – $1,800
Your costs total to $44,100. This amount minus your funds will create a funding gap of $5,800. You can then use the SnapLoan line of credit to request the leftover $5,800 to cover that remaining expense.
This example was based on annual costs. The total funding gap over the four-year period would be $23,200.