College Funding
From LoveToKnow College
Sources of College Funding
Once you’ve received an acceptance letter from the school of your dreams, it’s time to start thinking about college funding options. Currently, the average cost for tuition and fees at a four-year public college or university is $5,491, while private schools cost an average of $21,235 per year.
In most cases, students receive college funding from a variety of sources. Personal savings can be supplemented by student loans, gifts from parents can be added to scholarship money, or part-time employment can be used to fill in the gap left by a tuition grant. Persistence and flexibility are key as you’re deciding how to pay for your education.
Grants
Since they don’t have to be repaid, grants are a form of college funding based primarily on your financial need. Students from low- or middle-income families are the recipients of most college grants.
The most popular type of college grant is the Pell Grant. You are automatically considered for this grant when you complete a FAFSA form. The amount of your grant can range from just a few hundred dollars to the maximum of $4,050. The money you receive does not have to be repaid.
Loans
College loans come in several different forms. Federal student loans have the best interest rates, although private loans can be a good option if you’re unable to qualify for federal aid. Federal student loans will be offered those who complete the FAFSA and meet the necessary guidelines. If you wish to apply for a private student loan, you’ll need to contact the bank or sponsoring non-profit organization.
While college loans are generally considered an investment in your future, it’s not a good idea to borrow more than you can reasonably expect to pay off. Even if you finish school with the average amount of debt, currently about $18,000, it can be tough to make ends meet if you can’t find a position with a suitable starting salary. Before you take out any loans for your tuition, research the average salaries in your field and make sure you’ve considered all other options. Although student loans are unsecured debt, they generally can’t be included as part of a bankruptcy filing.
Scholarships
Scholarships are an ideal college funding source, since the money you receive does not have to be repaid. And, contrary to popular belief, you don’t have to be an academic all-star to receive a scholarship. There are scholarships for minorities, scholarships for athletes, and scholarships for people with an outstanding record of community service. There are even scholarships for students who have relatives in the military or parents employed by a particular corporation.
While your high school guidance counselor can often direct you to local scholarships, there are many websites you can use to learn more about national scholarship programs. For example, FastWeb offers students a convenient way to search more than 1.3 million scholarship listings. To learn more about the college scholarship application process, please see the LoveToKnow College article on College Scholarships.
Part-Time Employment
If your FAFSA application shows significant financial need, you may be eligible to receive federal work study funds. This will allow you to earn a predetermined amount of money by working at an approved part-time job. Many schools have job fairs at the beginning of the semester to assist students in their search for on-campus work study employment.
If you aren’t eligible for work study funds, part-time employment can still be an important part of your college funding plan. Freshmen and sophomores often earn money by working in restaurants or retail stores, while juniors and seniors can sometimes earn money and build their résumés by completing paid internships in their field of study.
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