The average cost of college is nearly $50,000 a year for nonprofit private schools. Each year, tuition costs are continuing to increase. For many potential students, this is worrisome as they learn how much they’ll need and try to decide how they can pay for college. Luckily, there are many ways to do so.
1. Apply For Student Loans
One of the most popular way for young adults to pay for college is via student loans. There are several types of loans that you can apply for. Direct subsidized loans depend on your financial need while direct unsubsidized loans are not based on financial need, nor are they based on your credit score. Another kind of loan is a direct PLUS loan which is credit-based and unsubsidized. It’s most commonly used by parents of college students or students who are in graduate school. There is a lot of misinformation on the internet about loans, so it is important to do thorough research before signing on the dotted line for any loan agreement.
2. Grants
Grants are another popular way that students pay for their college tuition. They are available through the federal government, the state, and colleges. Sometimes, organizations also provide grants to certain students who want to attend college. Grants are especially helpful because they don’t need to be repaid when the student finishes school. When applying for a federal grant, keep in mind that they cap at just under $6,000 per year and typically go to families earning less than $30,000 per year. Colleges consider how much they think your family can afford when paying your tuition before filling the gap with a grant. Each state has its own regulations.
3. Tuition Assistance From an Employer
Many college students receive tuition assistance via an employer. If you’re already working somewhere, ask the company if it has an assistance or reimbursement plan. If you’re not working and are considering doing so while you go to college, it’s a good idea to look for a job that provides tuition assistance for its employees. Many fast food chains do, as do a variety of customer service jobs. Keep in mind that some employers cap their assistance at a certain amount, so be sure to ask questions.
4. Work-Study Jobs
Another way to pay for college while you work is to get a work-study job through your university. In addition to providing income, you’ll likely gain experience in the field you hope to enter and may even make networking connections along the way. A federal work-study job provides part-time jobs for those who have financial need. You must submit a FAFSA for this type of work-study program. If you’re awarded work-study money, you’ll then need to find a qualifying job on your campus and work the required number of hours. It may be a bit complicated, but the networking and tuition assistance is well worth it for many.
5. Private Scholarships
Colleges aren’t the only ones who provide scholarships. High schools, community organizations, and even some corporations also provide scholarships that you may be eligible to receive. If you are still in high school, your guidance counselor can provide you with a list of local scholarships that are available. You can also use free online services that help you find scholarships that you can apply for. Keep in mind that these often require essays or other types of work to apply, so start early if you want to get any scholarships before school starts.
6. 529 College Savings Plan
If you are a parent who is trying to determine how to pay for your child’s college in the future, try a 529 college savings plan. This type of savings plan is one that parents can grow without paying taxes on the account, as long as it’s used for qualified educational expenses throughout the child’s school years. In addition to traditional colleges or universities, it can also pay for vocational schools, trade schools, and even tuition for elementary and high school if you choose private education.
Deciding to go to college and figuring out how to pay for it can be daunting, but armed with the right knowledge, it is much easier to find ways to pay for school. All it takes is a little legwork.