Tuition, fees, room and board and other expenses at a four-year university add up to an average of between $18,000 and $40,000 every year, according to a College Board study. That’s a lot of money! But don’t worry—there are lots of ways to score cash to pay for college. You’ll lower your “net cost” by getting financial aid that you don’t have to pay back, like scholarships and grants.
WORK STUDY OR CO-OP PROGRAMS
While in school you can earn money to offset college costs. Consider the Federal Work-Study Program which provides part-time employment to students so they can get a paycheck to help with college expenses. At Agnes Scott College (GA) for example students can work on campus in clerical positions be a tutor or assist with research in a variety of departments. Limited off-campus jobs may be available at some schools too.
HOW TO GET ONE
Fill out the the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov to determine if you’re eligible for federal work-study. After you qualify find work-study jobs through the college’s online job search system or by contacting the financial aid office.
SCHOLARSHIPS
A scholarship is money for college that you don’t have to repay. Scholarships are awarded based on merit financial need as determined by the FAFSA or student-specific factors such as gender race geography or intent to major in a certain program. Merit-based scholarships are awarded based on academic achievement (your GPA or SAT or ACT scores) or another personal achievement (such as in sports the arts or volunteering).
HOW TO GET ONE
Many colleges and universities have scholarships available to incoming freshmen. Often college acceptance will enter you in the running for these scholarships. But don’t stop there! Look into the merit scholarships offered by your community or state as well as award money from local organizations such as clubs businesses churches synagogues and other associations.
There are plenty of free scholarship search sites including CollegeBoard.com; CollegeNet.com; Fastweb.com and Scholarships.com. You’ll want to provide all of the information requested since many of the optional questions help match you to even more scholarships. Talk to your high school guidance counselor about what’s available and check your local library for scholarship listings.
To maximize your chances of getting a scholarship Patrick Bonones, Director of Financial Aid at Agnes Scott College, suggests applying for every scholarship you qualify for (except for any that charge a fee since those are scams) and paying close attention to deadlines. “Be thorough in completing the forms follow all the instructions and submit the applications on time. In many cases students may be able to reuse or re-edit previously submitted essays,” Bonones says.
Take time to review the scholarship criteria and proofread your application materials to eliminate spelling or grammatical errors. “Be honest and make sure you don’t sell yourself short,” says Scott Thum, Director of Financial Aid at Indiana Tech.
GRANTS
Like a scholarship a grant is essentially free money and doesn’t need to be repaid. A large portion of grants are need-based and thus given to students because of their families’ financial situations rather than strictly because they made straight A’s or can kick a 50-yard field goal. (Though some grants are merit-based as well.)
The federal government state government and individual colleges award grants. Common grants include the Federal Pell Grant and the Federal Supplemental Educational Opportunity Grant (FSEOG) each of which is given based on financial need. The Federal Pell Grant is worth up to $5,645 per year while the FSEOG provides between $100 and $4,000 per year.
HOW TO GET ONE
To get a grant fill out the FAFSA at www.fafsa.gov to determine if you qualify. (You can submit this form starting January 1 for the following school year.) Try to get your parents to file their income taxes early in the year since the FAFSA requires information from those tax forms. (If your parents don’t yet have their tax returns have them insert estimates from last year’s forms.)
FEDERAL STUDENT LOANS
If scholarships grants and savings aren’t enough to fund your college tuition and expenses consider getting a federal student loan. The government lends you money to help pay for college and in return you pay them back with interest after you graduate. Federal loan eligibility is largely based on financial need meaning you must show you would have trouble affording college without help.
Federal student loans include the Perkins Stafford and PLUS loans. The federal Perkins loan is given based on financial need. The amount of money you get is determined by your school’s financial aid office. The maximum amount undergraduate students can receive annually is $5,500 and the interest rate is 5 percent. Interest does not accrue on the loan while you’re in school at least half-time and you don’t have to start repaying it until nine months after graduation. The normal maximum repayment period is 10 years.
The Federal Stafford loan is another good bet. There are two types of Stafford loans: direct subsidized meaning that the government pays the interest on your loan while you’re in school and direct unsubsidized meaning that you pay the interest though you can defer payments until graduation. The interest rate on subsidized and unsubsidized Stafford loans is 3.86 percent (as of November 2013) but rates are subject to change based on the markets and legislation by Congress. To get a subsidized Stafford loan you must show financial need. You don’t need to show financial need for an unsubsidized Stafford loan.
Federal Direct PLUS Loans are loans that your parents can take out to help you pay for school. They offer a 6.41 percent interest rate (as of November 2013).
HOW TO GET ONE
To get a federal loan fill out the FAFSA. Submit this form early because government aid is distributed on a first-come first-served basis.
PRIVATE STUDENT LOANS
Private loans from a bank are usually a last resort because they are often the most expensive options in terms of interest rates fees and repayment terms. Still they do make sense for some students.
HOW TO GET ONE
Apply directly to a bank or other lender for a private loan or through sites such as SallieMae.com. Talk to your college financial aid counselor and to your family members or others who may help you pay for college to determine whether a private student loan is right for you. Do research online to determine which banks offer the best interest rates and repayment terms.
Bonones recommends reading all the fine print when considering a private education loan and compare the terms of various loan options. “Look at the payout amount over the life of the loan. Think about your future career goals and how salaries in those fields might compare to loan payments that will be required,” Bonones says.
Additionally Thum suggests reviewing your options before allowing a company to conduct a credit check. “Every time you have a credit check done it marks your credit.” This could potentially affect the interest rate or your ability to borrow.
Bottom line: “Your education is an investment: borrow smart and only borrow what is necessary to cover your educational expenses,” says Michelle Hemmer assistant director of financial aid at William Peace University (NC).
Though all these options can seem overwhelming your high school guidance counselor college admissions counselor or financial aid office can walk you through all the ways to obtain financial aid. And remember when looking at the price of a school consider the “net cost” (the amount you’ll actually pay after financial aid and scholarship awards are applied) rather than the sticker price (the full cost of tuition room and board and fees). “Oftentimes after awards a student finds the cost of attendance at an institution can be more affordable than originally thought,” Hemmer says.
In the end it will all be worth it. A college education is one of the best investments you can make in your future!
Lisa Nicole is a freelance writer in Fort Lauderdale, Fla.
