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Money
How to Pay for College
Budgeting
Basic building blocks of a budget:
Expense
Income
List your estimated expenses.
List your estimated income.
This gives you an idea of how much money you have to work
with.
To figure out how to pay for college, you should spend time
learning how much college will cost (tuition, fees, textbooks,
travel, etc.) so you can have a more accurate idea of what kind of
money it will take to afford college.
Understanding Tuition
Tuition varies by college.
Some colleges display total tuition for four years while
some give you only the cost per credit hour. Spend time
figuring out what the cost for tuition is at the colleges in
which you are interested.
Look at the colleges you are considering and find out their
tuition costs for a year. Calculate how much that will total
after four years (or two years if your degree requires only
two).
There are more costs associated with college than just
tuition; be aware of housing, food, travel, textbook, and
other costs that you will need to pay for.
Ways to Pay for College
Scholarships
FAFSA
Grants
Loans (private, federal, subsidized/unsubsidized)
Work-Study/Work
Family/Parental Contribution
Scholarships
Scholarships are free money given to students who meet certain
requirements.
Offered through many companies. Check out local and state banks,
agricultural operation companies, electric companies, 4H, rotary
clubs, insurance agencies, local churches, conference offices, online
engines (like FastWeb Scholarship Search), schools, local civic
groups and organizations, stores, restaurants, the library, and city or
state officials.
Avoid online scholarship search engines that ask for personal
information or payment; scholarships should be free!
You may qualify for scholarships based on other characteristics like:
academic achievement, religious affiliation, ethnic or racial heritage,
artistic talents, athletic ability, or even career plans or proposed fields
of study.
FAFSA
Federal Application for Student Aid
Go to the correct site: www.fafsa.ed.gov (don’t pay
to complete the FREE FAFSA!)
Apply in early January to qualify for the most free
money.
You will need: your tax return information, your
parents’ tax return information, social security
numbers, W-2s, and your personal identification
number through FAFSA (provided as part of the
process).
Grants
Grants = FREE money!
Difference between grants and scholarships:
Scholarships are typically merit-based.
Grants are based on need.
You must complete the FAFSA in order to
qualify for grants (apply early in January!).
Your college financial adviser can help you with
more information on getting grants.
Loans
Types of Loans:
Perkins Loans – for those with high financial need
Direct Federal Subsidized – based on need, interest does
not grow while you are in school
Direct Federal Unsubsidized - interest grows even while you
are in school
Parent – available to parents to get extra money to cover
college expense
Private – available to students through private vendors
(usually banks) with typically higher interest rates
More on Loans
Loans should be the LAST option to pay for college
after you have exhausted every other method of
payment.
Compare loans available to make sure you get the best
interest rate.
You may need a cosigner if your credit score is not
high enough for you to sign for your own loan.
In the end, YOU are responsible for repaying every
cent you borrow plus interest. Be prepared to make
that commitment, no matter how long it takes to pay off
the loan.
But it is best to not take out loans if you can help it!
Other Ways to Pay
Family contribution
Work-study programs may be available through
your college, or you can find other kinds of work
to help pay off your bill.
Commit to working over the summer to get your
bill paid.
Your goal for college finance: complete your
studies with as little student debt as possible!