Charger Family Connection
How Am I Going to Pay for College?
There are many challenges to overcome as you prepare to send your student off to college, and chances are that finances will be the biggest hurdle of all. Sometimes it’s necessary to get a little creative when you’re looking for ways to fund your child’s tuition. Keep in mind that more than half of all college entrants receive financial aid, which comes in many forms—including those listed here.
Scholarships and Grants
Scholarships and grants are an always attractive option, since they do not need to be repaid. These awards are granted to students who demonstrate financial need (need based) and to those who demonstrate remarkable talent and intellect (merit based). Thousands of scholarships exist at the local, regional, state, and national levels, and most colleges offer scholarships of their own as well. Start searching early to find the most aid; try the free search site www.fastweb.com.
"Thousands of scholarships exist at the local, regional, state, and national levels, and most colleges offer scholarships of their own as well."
Work-Study Programs
Students can help foot the bill for college by working on campus in part-time positions related to their field of study. Work-study jobs pay at least minimum wage and require students to work no more than 20 hours per week. Best of all, the money your student earns through work-study, as opposed to another part-time job, does not count as income on next year’s FAFSA, so it won’t increase your Expected Family Contribution.
Loans
Loans are the least attractive option, but they are often necessary in paying for college. Federal student loans carry lower interest rates and looser repayment options than those granted by private companies, and thus are the best place to start. Federal Direct Loans are open to all college students, though those who have financial need can qualify for the added perk of deferred interest while they are in school. Federal Perkins Loans are reserved for students with great financial need and have a lower interest rate (if your student received a Pell Grant, they’ll likely qualify for a Perkins Loan). Be sure to review the terms of all loans carefully to help your student decide how much debt they can reasonably take on.
About the FAFSA
Your eligibility for these and other types of funding can be determined by the FAFSA—the Department of Education’s Free Application for Federal Student Aid (www.fafsa.gov). You may complete the FAFSA as early as October 1 of your student’s senior year, and it must be re-filed every year thereafter.
Finding student aid is no mystery. It is a somewhat tedious process, though, so the trick is staying organized and focused. You’ll find that the process gets easier as you become more familiar with it, but if you should get stuck, contact your student’s financial aid office for advice.
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