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!