When your child is younger, your focus will be on putting aside money for college. But as your child gets closer to college, it’s time to learn about additional ways to pay for college. The best way to prepare for paying for college is to have an understanding of the resources available to you and your family.
The price of college listed on the website is called the sticker price. Don’t let the number scare you! Most families do not pay this price. The price of college to families after financial aid, grants, and scholarships is called the net price. In addition to savings, here are some of the ways families pay for college:
Financial Aid and FAFSA
Financial aid helps families pay for college. Financial Aid typically includes federal grants, loans, work-study, and institutional grants. Federal grants are need-based funds that you do not need to repay. Institutional grants may be need- or merit-based and vary based on the educational institution.
The Free Application for Federal Student Aid (FAFSA) determines eligibility for federal financial aid and most scholarship programs. The FAFSA launches October 1st of the year prior to college enrollment and is available at www.fafsa.gov.
Loans
You or your child may have to borrow additional money to pay for college. Since loans need to be repaid with interest, it is important to only borrow what you need.
There are many different types of loans, and understanding the terms and interest associated with each type is important before making a decision to borrow.
The federal government, state agencies, and private banks or financial institutions are the three major sources of education loans. Federal loans tend to offer low interest rates and flexible repayment options, specifically for families with demonstrated need.
For more information on loans, check out the College Board’s resources.
Private or outside scholarships
A private or outside scholarship is money granted by local, state, or national organizations and businesses. The Community Foundation of Wabash County is one of those organizations. These scholarships may be need-based or merit-based and do not have to be repaid. Scholarship money may help reduce loans or pay for school supplies and books.
Tips for applying for private or scholarships
- Read the eligibility requirements carefully. Some scholarships are only for students intending to study engineering, or born in the month of May, or the first in their family to attend college.
- Note the scholarship deadline. You don’t want your child to miss out on a chance to win money!
- Look for local, state, and national scholarships (example: FastWeb! A National Scholarship Database).
- School counselors and principals are great resources for local scholarships, but online scholarship databases are helpful in finding national scholarships.
- Understand how outside scholarships may affect your financial aid package. Check the financial aid policies of your child’s college or university regarding outside scholarships.
- Keep all application materials. Many scholarships have similar prompts or requirements. Saving essays or resumes as inspiration for other scholarships can help speed along the application process
Student Contributions
Your student may contribute money from their own savings or a summer job to help pay for college. Your child may contribute directly to tuition fees or use that money to pay for additional costs – like books and school supplies.
Depending on your family’s financial aid package, you son or daughter may also enroll in a work-study program. Work-study programs are part-time jobs for students offered as a part of federal or college financial aid.
