How To Pay For College

Every year, college students hear horror stories about rising tuition, falling job opportunities, and students buried under huge amounts of debt. It’s enough to make you cling to your retail job.

But paying for your education without getting buried isn’t nearly as hard as you might think: there are dozens of options available for students. For example:

• The U.S. Government. Aid is available through the Free Application for Federal Student Aid, which you know better as the FAFSA. Filling this out is your starting point towards any help for college. The FAFSA helps the government determine how much aid you’re qualified for to get through school. See www.fafsa.ed.gov for more information.
• Grants. Grants are, of course, free money dedicated to school. Many students qualify for federal grants, and they can knock the cost of college down to a more reasonable level…or at least cover your books. See www.grants.gov for more information.
• Scholarships. While it’s difficult to pay for an entire education with scholarships (unless you’re a genius or a professional athlete), many smaller scholarships are available that can substantially cut down the burden of paying for college. See www.scholarships.com for the types of scholarships that might be available to you.
• Federal loans. These are student loans provided and secured by the federal government. These are generally administered by a loan provider, but the money comes directly from the Department of Education. There are subsidized student loans, which don’t charge interest until you’re out of school, and unsubsidized student loans, which start charging interest immediately. The interest rates are fixed. See www.direct.ed.gov for more information.
• State loans. These are similar to federal loans, but provided by the state. Both are unforgiving, though: you will be paying these loans back, even if they have to take your Social Security to do it. See www.collegescholarships.org for a list of loans by state.
• Private student loans. Private loans have a lot of advantages: there are many providers, they’re not dependent on the FAFSA to provide levels of aid, and they can help you build credit. They’re also not time-sensitive: you can get a private student loan at any time, to help with any expense related to school.

If you’re considering a private student loan, here are some of the factors to consider:

• Cosigners. Odds are pretty good you can’t just sign for the loan yourself. A cosigner with good credit will lower your interest rate and let you secure more money for school. Just remember: anything you choose to do, your cosigner will also be responsible for.
• Interest rates. Unlike federal loans, interest rates depend on your credit and can vary widely. Choose the lowest rate possible: you’ll need it.
• Time to pay. The longer it takes for your student loan to get paid off, the more you’ll be paying in interest.

But as long as you stay on top of your payments, and keep an eye on your finances, paying for college doesn’t have to be scary. You can use your college education to make more money, and lay the foundation for a successful financial future!