We all know that college is expensive and for some people, it can be really stressful to figure out how to pay for it! There are a few options that are available. For instance, financial aid, grants and scholarships, loans, working and saving, or military programs. Below there will be explanations of each of these types.
Financial Aid
The first step in applying for financial aid is to complete the U.S. Department of Education Free Application for Federal Student Aid (FAFSA).
There are some things that you will want to have prepared prior to filling out the form. For instance, the FAFSA office collects demographic and financial information from you and your parents to determine an Expected Family Contribution (EFC). This figure determines your eligibility for:
This EFC is determined according to formulas set yearly by U.S. Congress.
On the FAFSA form, it will ask you what colleges you are considering so that your information may be sent there.
Parents: There are usually clinics available at your child's high school in order to help you through this process. It is encouraged that you attend in order to gain as much information as possible. Be sure to ask questions. It is a complicated process and questions are understandable.
- Remember to only file one FAFSA form, regardless of how many colleges you are wanting to attend or considering.
- The forms for this are available at the FAFSA website, at high school counselor offices, or by calling the Federal Student Aid information hotline (1-800-433-3243)
There are some things that you will want to have prepared prior to filling out the form. For instance, the FAFSA office collects demographic and financial information from you and your parents to determine an Expected Family Contribution (EFC). This figure determines your eligibility for:
- Federal Pell Grants
- other federal financial aid programs
- many state programs
This EFC is determined according to formulas set yearly by U.S. Congress.
On the FAFSA form, it will ask you what colleges you are considering so that your information may be sent there.
Parents: There are usually clinics available at your child's high school in order to help you through this process. It is encouraged that you attend in order to gain as much information as possible. Be sure to ask questions. It is a complicated process and questions are understandable.
Grants and Scholarships
Grants are financial awards that do not need to be repaid and typically come from state or federal sources. They are usually based on financial need. Scholarships are financial awards based on merit or merit plus need and come from government or private sources. They also do not need to be repaid.
Merit-based scholarships can be earned based on your talents or performance in a variety of areas:
Most scholarships use a combination of financial need and merit. Scholarships can be found anywhere! A simple Google search should provide you with many different opportunities, but be sure not to be fooled! There are scams out there asking for private information. Do not give our your information if you are unsure. Here is a list of safe places that you are find scholarship opportunities:
To connect with local agencies for grants and scholarships, check out College Scholarships.org!
Merit-based scholarships can be earned based on your talents or performance in a variety of areas:
- Academic
- Athletic
- Extracurricular Involvement
- Leadership
- Volunteer Work
- Art, theater, music
Most scholarships use a combination of financial need and merit. Scholarships can be found anywhere! A simple Google search should provide you with many different opportunities, but be sure not to be fooled! There are scams out there asking for private information. Do not give our your information if you are unsure. Here is a list of safe places that you are find scholarship opportunities:
- the financial aid office at a college or career school
- a high school or TRIO counselor
- the U.S. Department of Labor’s FREE scholarship search tool
- federal agencies
- your state grant agency
- your library’s reference section
- foundations, religious or community organizations, local businesses, or civic groups
- organizations (including professional associations) related to your field of interest
- ethnicity-based organizations
- your employer or your parents’ employers
To connect with local agencies for grants and scholarships, check out College Scholarships.org!
Loans
Although this isn't the option that a student or parent wants, it most often times is the option that they need to take in order to afford college. Because most banks consider loans to students very risky, the federal government guarantees student loans. Interest rates may vary by program. For federal loans, qualifying students-based on need-will not have to pay interest while in school. Rates are usually lower than private loans and repayment is usually delayed until you graduate. Loan programs also are available to eligible parents to help with college expenses of their qualifying children.
There are three types of loans:
Combinations of these are called consolidation loans. As you near graduation or after graduation, a consolidation loan may lock in at a lower interest rate and also an extend the repayment period.
Remember: These loans MUST be repaid.
There are three types of loans:
- Student loans: interest begins when you get the money, but you don't have to repay the loan until you graduate. This means that interest still accumulates even if you are not paying them. A recommendation, if possible, is to pay the interest that is accruing while in school.
- Parent loans: allows your parents to pay for your education. Parents may also want to consider a home equity loan.
- Alternative loans: if student or parent loans do not cover the complete cost, private lenders may offer loans to cover the rest.
Combinations of these are called consolidation loans. As you near graduation or after graduation, a consolidation loan may lock in at a lower interest rate and also an extend the repayment period.
Remember: These loans MUST be repaid.
Military Programs
Military benefits-The military offers several options to help you pay for college.
- Reserve Officers' Training Corps (ROTC)-provides money for college while you are in school. Upon graduation, you enter the miliary as an officer.
- Servicemembers Opportunity Colleges (SOC)-More than 1800 colleges participate in this program. It allows servicemembers to earn a degree from civilian college while serving in the military.
- Veterans-a variety of programs are available to those who have served in the military. Check with the Veterans Administration for details.
Working and Saving
Many students choose to work while in college. A job can help pay for college tuition and other expenses associated with college.
Work-Study
These programs are funded by the federal government and some states. Completing your FAFSA may be the first step to finding a work-study job. This program provides jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay educational expenses. The program encourages community service and work related to each student's course of study. You will earn at least the minimum wage, but could be paid more.
Employment On and Off Campus (Non work-study)
Most colleges offer a wide variety of employment opportunities for students who are seeking jobs to help defray their college costs. Most colleges maintain a student employment office that will assist students in locating both on- and off-campus job opportunities.
College Savings
Plan ahead and save. College expenses have increased by 8% a year in the past, more than twice the rate of inflation. Use a calculator to find out how much college will cost when you are ready to enroll, and how much you need to save each year.
Parents: look into tax-free college saving programs!
To get more information regarding the above information, go to www.actstudent.org or by checking out https://studentloans.gov.
Work-Study
These programs are funded by the federal government and some states. Completing your FAFSA may be the first step to finding a work-study job. This program provides jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay educational expenses. The program encourages community service and work related to each student's course of study. You will earn at least the minimum wage, but could be paid more.
Employment On and Off Campus (Non work-study)
Most colleges offer a wide variety of employment opportunities for students who are seeking jobs to help defray their college costs. Most colleges maintain a student employment office that will assist students in locating both on- and off-campus job opportunities.
College Savings
Plan ahead and save. College expenses have increased by 8% a year in the past, more than twice the rate of inflation. Use a calculator to find out how much college will cost when you are ready to enroll, and how much you need to save each year.
Parents: look into tax-free college saving programs!
To get more information regarding the above information, go to www.actstudent.org or by checking out https://studentloans.gov.