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“How are we going to pay for college?” is a question families across the country ask themselves every year. With the rising cost of higher education, most students can’t rely on just one source of funding — it often takes a mix of savings, financial aid, income, loans, and more to make it work.
A college is considered affordable if your family can cover the net price with savings, earnings, and aid. Planning wisely is the key to paying for college for all four years without relying heavily on student loans.
The U.S. Department of Education awarded about $114.1 billion in federal grants, loans, and work-study funds in 2023, according to the most recent Federal Student Aid annual report. Those federal funds helped more than 9.7 million students complete their education.
Federal financial aid can be borrowed, earned through work-study, or given outright as a grant.
Refile the FAFSA every year! The FAFSA isn’t just for incoming freshmen. You must refile every year, especially if you wish to qualify for federal aid, state aid, or institutional aid from the college.
Update changes in income. If your income changes or there are adjustments to the reported information, contact the financial aid office at your college. Such changes may include job loss, a decrease in income from previous years, divorce or separation, the death of a parent, unreimbursed medical expenses, catastrophic loss of a family home or business, or the end of child support or other payments.
Familiarize yourself with FAFSA deadlines. Although each school sets its own deadline, the federal FAFSA deadline is June 30 of the year following the academic year you’re applying for. However, many colleges have their own priority filing dates for maximum aid consideration.
State aid deadlines also vary and, in some cases, funding is awarded on a first-come, first-served basis. Additionally, some states may require a separate application for certain types of aid.
There’s a common misconception that scholarships are only available for high school seniors, but nothing could be further from the truth. There are numerous scholarships available for current college students as well. In addition, if you plan to attend graduate school, scholarships will be an essential element in financing that stage of your education. Otherwise, graduate school debt on top of any undergraduate debt you may have could be overwhelming.
Use these proven tips to explore every scholarship opportunity and maximize your chances of securing college funding.
Contact the financial aid office. The financial aid office will be aware of college-specific scholarships for current students. Ask them about scholarships you might qualify for and how you can apply.
Check departmental bulletin boards and talk to professors. Check out the bulletin boards near classrooms and professors’ offices located in the building that houses the department of your major. (Yes, old-school, physical bulletin boards are still widely used!) Ask your professors if they know about any scholarships and what you should do to apply.
Verify that the scholarship you have is renewable. Many scholarships are offered to first-year students as incentives to accept admission. Verify that any scholarships you are currently receiving are renewable. Ask if you must refile an application to continue receiving funds.
Search within your major or career interests. Search online for scholarships related to your major or prospective career. Look on the college website for the major and find any scholarships or scholarship competitions listed.
Check lists of scholarships for undergrads. Many college-related websites have done the work for you and created specific lists for current college students.
Package your scholarship application to win. The scholarship application must stand out. Crafting a winning essay is only one element of a winning scholarship application. Follow instructions carefully and take the time needed to present the best version of yourself. If recommendations are required, choose them carefully. If there are no instructions about not including additional elements, include them.
Student loan debt in the United States totals $1.777 trillion. The average federal student loan debt balance is $38,375, while the total average balance (including private loan debt) may be as high as $41,618. Being uneducated about your student loans can have dire consequences. Parents and students should take charge and be in control of what they borrow and what they owe.
Stay up to date with current and future student loan legislation. Proposed changes to the federal student loan and Parent PLUS loan programs could bring significant shifts for future borrowers. New borrowing caps are also being considered, including an undergraduate loan limit tied to the national median cost of attendance and a lifetime borrowing cap of $50,000. If these limits take effect, many students may be forced to rely more heavily on private loans.
Repayment and forgiveness options may also undergo major revisions. The number of federal income-driven repayment plans could be reduced, and a new Repayment Assistance Plan (RAP) is under consideration.
It’s important to note that these proposals aren’t yet final and may evolve. Students and families should stay informed on legislative developments and re-evaluate borrowing strategies each academic year.
Compare private loan rates. Not all private student loans are created equal. Private loan interest rates vary, along with repayment terms. There are several options available online to help you compare private student loans. ConsumersAdvocate.org is a good source for a side-by-side comparison.
Understand repayment terms and forgiveness options. Understanding student loan repayment and forgiveness options starts with knowing what type(s) of loans you have. Repayment plans and forgiveness programs typically apply only to federal student loans. Borrowers can log in to their Federal Student Aid account at StudentAid.gov to see their loans and servicer, then use the Loan Simulator to explore repayment plans and estimate monthly payments. You can contact your loan servicer with questions regarding forgiveness programs.
Twenty-two percent of bachelor’s degree-earners take more than four years to complete their program, and every semester or year adds to the overall cost of a degree. Several factors can impact how long it takes to earn your bachelor’s degree, even if you’re a full-time student on a traditional path. Here are considerations that may decrease your time in college:
Enter college with as many credits as possible. Dual enrollment credits or summer community college credits might count toward your degree and shorten your time in college.
Take care when changing majors. Switching to a new major might mean taking additional classes, which can extend your time in college beyond the typical four years.
Take summer classes. Enrolling in summer classes can help you move ahead or stay on track for graduation.
Avoid dropping classes. If you drop a class and don’t replace it right away, it could delay your progress toward earning your degree.
After the first year, students can apply to serve as a Resident Assistant (RA) in a campus residence hall. Most colleges let students have free room and board while they work in this capacity. RAs answer questions, enforce rules, help resolve roommate conflicts, and plan social activities.
In addition to summer jobs, many students choose to work part-time during the school year to supplement their education funds. There are usually lots of campus jobs available, which you can find in the student employment section of the college website. Students may also choose to work off campus at local businesses in the area. Another option is a paid internship related to your area of study, which has the added bonus of providing valuable career experience.
Pro Tip: Whether or not you receive work study, building relationships with faculty and staff can pay off by opening up additional opportunities after the first year of college. Academic excellence may lead to an invitation to work as a research or teaching assistant where responsibilities range from grading and note taking to running labs, field trips, and study groups.
Your student ID is like a permanent discount coupon. Many area businesses offer student discounts when you show your ID card. You can save on entertainment, cultural exhibits, groceries, travel, and so much more. Look for discounts everywhere, especially online.
Some employers provide tuition assistance programs for their employees — and sometimes also for their employees’ children. If you or a family member works for a company with this benefit, it’s worth exploring.
The average postsecondary student spends between $1,212 and $1,463 annually for books and supplies. Hard copy books can cost as much as $400, with an average price between $100 and $150. Sixty-five percent of college students skipped buying textbooks because they were too expensive.
Rent, buy used, share with a roommate, purchase an eBook, compare prices online, or search online for free eBooks.
Check out “How to Save Money on College Textbooks” for links and hints.
