Each year, millions of students go to college — to further their careers, be more competitive in the job market, and to improve their own skills through higher education. The biggest concern for many students is how to pay for college without going broke. While college savings can help pay for your tuition, many students use financial aid to pursue their degree.
We believe that a high-quality education should be accessible to everyone, and we’ve put together some practical tips to help you pay for college without breaking your budget.
Find a College That Delivers Value
There are many ways to achieve your college goals, but deciding how to use your money wisely is one of the best choices you can make. For students in a two-year program, this might mean enrolling in an online program that costs less than a brick-and-mortar school. If you’re planning on taking a four-year program, it might be more economical to take your basic educational requirements at a local community college. Make sure the credits are transferable before you do this (many accredited institutions maintain transfer agreements, though transferability should always be confirmed with the receiving institution). For students who qualify for the maximum Pell Grant award, enrolling in a program with tuition below the maximum Pell Grant amount may significantly reduce, or in some cases, cover all tuition costs. If you’re a high school student preparing for college, ask your guidance counselor about dual enrollment classes, which can help you earn college credits before you graduate, saving you money in the long run.
Fill Out the FAFSA as Early as Possible
The Free Application for Federal Student Aid (FAFSA) is an application students fill out each year to become eligible for financial aid. This potentially gives you access to grants, scholarships, work-study programs, or federal student loans. The FAFSA typically opens before the start of the applicable award year. Students should consult StudentAid.gov for current application dates and deadlines. While the federal FAFSA deadline is typically June 30 of the applicable award year, state and institutional deadlines may occur earlier. Many people mistakenly think the final deadline is the last day to have access to all financial aid awards. The truth is, the sooner you apply, the better.
There are several financial aid awards through state programs and the respective schools that are available on a first-come, first-serve basis, meaning the sooner you apply, the greater your opportunity to be considered for aid programs with limited funding. Some schools may require a FAFSA on file for certain institutional scholarships and aid programs. It’s best to apply early to maximize consideration for available aid programs that may have limited funding.
Look Into Transfer Credits
If you’ve ever taken community college courses or been through military training programs, find out if those credits are transferrable to your four-year college. Many accredited colleges have transfer agreements with community colleges, meaning you can take your general education classes locally and may transfer those credits to your four-year college. This is advantageous because the cost of credits in community college are usually much lower than at a state university or four-year college.
Start a 529 Savings Account
A 529 savings plan is a special type of savings account that offers tax advantages for all money used for college tuition, books, and expenses. Contributions to a 529 plan are not tax-deductible on your federal return, but any earnings are tax-free, and all withdrawals for higher education expenses are also tax-free. A 529 plan is most effective when you start saving early, allowing compound interest to grow over time. Consider setting up automatic contributions from your regular checking account to make saving for college easier. Contribution limits vary by state.
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Employee Tuition Assistance
Some companies offer tuition assistance as an employee benefit. For high school students or recent graduates, your parents may have this as a benefit for their dependents. Not every employer offers tuition assistance or tuition reimbursement, but some corporations do. Information on employee tuition assistance may be found on a company website or employee portal under “Education Benefits” or "Tuition Assistance”. The IRS allows employers to offer up to $5,250 in tax-free tuition assistance as an employee benefit.
Apply for Scholarships
Scholarships (aka cash awards) are given to incoming college students based on merit, need, or other qualifying criteria. The scholarship money doesn’t need to be paid back, and it goes towards your college tuition or learning materials.
A common type of scholarship is a merit-based scholarship, given to students who show excellence in academics (high GPA, SATs, other noteworthy achievements). Some colleges and universities also give scholarships for demonstrating excellence in athletics or performing arts (sports, music, etc.) These scholarships usually have an eligibility deadline, so apply early.
Need-based scholarships are sometimes awarded by educational institutions for students who demonstrate financial need.
Organizational scholarships are given by community organizations, local businesses, religious groups, or non-profit organizations. These scholarships are generally set aside for people in a specific group, of a certain background, or of a specific life circumstance.
Scholarships can be found by searching the Department of Education website, state programs, researching school programs, or searching local organizations for potential awards.
Apply for Grants
Grants are another type of financial aid that does not need to be repaid. Many federal grant programs are based on financial need and eligibility requirements. Some states also have grants,which can be found through the Department of Education grant finder tool. For any student trying to pay for college, applying for grants and filling out the FAFSA should be a top priority.
The types of grants that are available to students include:
- Federal Pell Grants
- Federal Supplemental Educational Opportunity Grants (FSEOG)
- State and Local Grants
Note: Many grants require students to maintain a baseline academic requirement and stay enrolled in school for that semester.
Student Loans
Most federal Direct Subsidized and Unsubsidized Loans do not require a co-signer or credit check. This is a type of financial aid that you must pay back.
There are two major types of federal student loans: subsidized and unsubsidized student loans. These are both fixed rate loans. With subsidized loans, the federal government pays the interest on the loan while you remain going to school at least half time. In an unsubsidized loan, the student is responsible for the accumulating interest from the day of disbursement forward.
You can also get a private loan from a bank or credit union to help pay for college, but the interest rate is usually higher than with a subsidized loan. Many private student loans require a co-signer, particularly for students with limited credit history.
Be sure to find other forms of financial aid that do not require repayment before considering student loans. Only accept the amount you need, and have a cohesive plan for paying back the loan.
Work Study Program
Some students are able to work part-time for the college they are attending through the federal Work-Study program. This allows eligible students to earn wages that may help offset educational and living expenses. The school you are attending may have a Work-Study program in conjunction with the Department of Education. Please note that not every college participates in this program, and you must still apply for the job at the school.
Part Time Work (Non Work-Study)
Even if you aren’t eligible for the Federal Work-Study program, you can still get a part-time job to help pay for college expenses. Be sure to plan your time wisely, leaving time for school, work, and personal maintenance.
Maintain a Disciplined Budget
Creating and managing your monthly budget is an important part of keeping your college goals on track. When it comes to school expenses, you may be able to save money by purchasing used textbooks or digital editions when available. If you are physically attending a college, choosing one that is close enough to commute to may help you save money on room, board, and meals.
Understanding your monthly expenses outside of school will help you create a realistic budget for each month and make long term plans. Opening a savings account for college before you apply will also help prepare for the cost of tuition. You can start by adding an automatic transfer from your checking to your savings to help save for college ahead of time.
Inquire About College Payment Plans
The billing department at your college may have convenient payment plans available to students to help defray the costs of tuition throughout the semester. This can help you pay in manageable installments instead of one lump sum at the beginning of the semester. Contact the financial aid office at your school to see if they offer a program similar to this.
Campus Believes College Should Be Accessible for All
Financial aid, scholarships, and other programs may help students fund their education and pursue their academic and career goals. Our team at Campus believes in delivering a high-quality education while helping make college more accessible for students. Our instructors also teach at respected schools like Stanford, Howard, UCLA, Yale, and NYU to name a few. If you have questions about financial aid, our friendly Financial Aid team can help answer your questions.
If you’re ready to take the next step towards pursuing your college degree, apply to Campus today.
Disclaimer: This article is provided for informational purposes only. Financial aid programs, eligibility requirements, award amounts, and application deadlines are determined by federal, state, and institutional policies and may change. Students should consult StudentAid.gov and their school’s financial aid office for the most current information.