Instead of getting hanging folders that were letter size I got the legal sized. It works perfectly!. The papers fit in nicely and do not rub against the side. I do not know why I did not think of this sooner. I also got a bit crazy trying to organize them in some kind of order. I was able to four things of construction paper and there is a little more room just in case I need it.
Hope you enjoy making this awesome construction paper organizer and enjoy it as much as I do!