well my understanding is you are only allowed to borrow up to what the school says, is this true?
True, because you're benefiting from certain federal loan advantages at the expense of the US taxpayer. As @SpartanWolverine pointed out, though, you may not be taking out the max your school will certify so it's worth checking exactly how much that is. Talk to current students, too, to see how accurate your perception of the cost of living is.
Possibly, depending on your credit history and any cosigners. It's definitely worth shopping around. The best way to think of an interest rate is that it's the price tag for the money. You always want to compare the cost of big-ticket items (homes, cars, absurdly huge student loans) before taking the plunge. And it doesn't hurt to see if you can get two lenders into a bidding war to secure a better rate (I got 50 basis points shaved off my mortgage that way!).
Maybe, but it's still your decision to make. I used a combination of loans (both federal and private) and years of my life in Army service to finance my education. My private loans and most of my Staffords are now refinanced into a fixed 4.0% interest rate.
With Fed loans, yes, except for certain qualifying expenses that can be allowed a budget increase at the discretion of your school (see my prior comment).
If you have reasonable credit it's not too hard to find a private loan <7% (bonus: without an origination fee). There are downsides to private loans, though.
