How to Pay for College

Paying for college can seem like a daunting task, but it doesn’t have to be. There are many ways to pay for college today, including numerous financial aid options available to students and their families. In this article, we’ll outline various strategies for financing a college education, empowering you to make informed decisions and pursue your academic goals without breaking the bank.

To apply for financial aid, you should fill out the Free Application for Federal Student Aid (FAFSA^®).

The FAFSA can open doors to a variety of financial aid options and should be the first step you take when looking for financial aid.

When it comes to filling out the FAFSA form, FAFSA recommends that you start by creating a StudentAid.gov account. All contributors (that is, anyone who is required to provide information on the FAFSA form) are required to create a Student.Aid.gov account as well. When filling out your form, you may need to provide information including your verified account username and password, parent or spouse contributor name, their date of birth, Social Security number, email address, and income and asset information. FAFSA estimates that it takes most people less than one hour to fill in the FAFSA form.¹

You can fill out FAFSA when you’re in the 12th grade, or the year before you plan to attend college. Ideally, you’ll want to fill out your FAFSA as soon as it becomes available. It’s best to complete your FAFSA as early as you can to help ensure you don’t miss out on opportunities for financial aid.²

To learn more, visit the Federal Student Aid Website, page: Filling Out the FAFSA^® Form.

Several of the common types of financial aid that can help you pay for college include:³

• Grants

  Grants are usually offered based on financial need. If you receive a grant, you don’t have to pay it back.

  
  

  With federal and institutional grants, you will be considered for aid when you submit your FAFSA. However, you can find additional grants from your state or even private institutions. To find state grant programs, you can visit the Department of Education’s website and use the State Contacts tool to find the agency that distributes each state’s grants. In order to be eligible for grants, most states will require you to fill out the FAFSA, but some states (including Pennsylvania, New Jersey and New York) may have a separate grant application in addition to the FAFSA.⁴

• Scholarships

  As with grants, you don’t have to repay scholarships. Some scholarships are need-based while others are merit-based and distributed based on factors like grade point average (GPA), test scores, and extracurricular activities.

  
  

  Some scholarships require you to first submit the FAFSA. You may also be able to find additional scholarships by contacting the financial aid office at the school you’re planning to attend or conducting research online.

• Work-Study

  The Federal Work-Study Program provides jobs to qualifying students so they can make money to cover college expenses. A few examples of work-study jobs include tutors, computer lab technicians, and researchers. Filling out the FAFSA form is the only way to be considered for Federal Work-Study programs.

• Federal Student Loans

  Federal student loans are offered by the federal government. They may come with perks like flexible repayment plans and student loan debt forgiveness programs. However, most of them have borrowing limits, meaning you may not receive enough money to pay for your entire college education. In order to get a federal loan, you’ll first need to complete the FAFSA form.

• Private Student Loans

  Private student loans come from private lenders, such as banks and credit unions. While you may be able to borrow as much as you need with a private student loan, you may also need to meet certain credit and income requirements, which can be difficult to do. Private student loans may also have stricter repayment requirements and higher interest rates than federal student loans.

If you’re planning ahead for college, you can also take the proactive approach and save for college.

Fortunately, there are a variety of college savings tools available. One option is using what’s known as a 529 plan. A 529 plan allows for tax-free growth and withdrawals for tuition, room and board, books, and other education-related expenses. Other options you might want to explore include brokerage accounts and savings accounts. A high yield savings account is another option you’ll want to consider. These accounts typically offer a higher yield than many traditional savings accounts and may help you grow your money faster.

Even if you have a plan to pay for college, you’ll still want to take steps to keep your costs down. Here are some tips that can help you minimize college expenses.

• Start at a Community College

  Community colleges tend to be more affordable than four-year colleges and universities, offering lower tuition costs and often a lower cost of living as well. To save some cash, you can begin your education at a community college. After gaining your associate degree in two years, you can transfer to a four-year college or university to finish your degree. Just be sure to check that the four-year institution that you plan to finish at will accept credits from your community college.⁶

• Buy Used Textbooks

  It may be convenient to buy the textbooks you need for your classes at a bookstore on campus. However, you may be able to find more affordable prices by buying them used online or through other students who sell them after they’ve completed the course.

• Be Responsible With Student Loans

  To save money, do your best to only borrow what you need to cover your college costs and living expenses. Overborrowing so you can upgrade your lifestyle can quickly lead to more debt, so make sure you prioritize and budget carefully while you’re studying.

• Graduate on Time or Even Early

  Graduating late means you could end up paying more for your overall college education. Try to be as efficient as possible and graduate on time. Even better, consider graduating earlier by earning class credits in advance if this is an option that’s available for you.

• Consider Tuition Reimbursement Programs

  Some employers may offer tuition reimbursement programs. If you happen to be employed by a company that offers this after you graduate or while you’re still in school, you could be reimbursed for part of or all of your college education.