Higher education is a major expense, and figuring out how to pay for it all is no simple matter. Over the past few decades tuition costs have skyrocketed across the board, making it a challenge for many to obtain the college education they desire.
As you think of your higher education, here are some steps to consider to help you navigate this exciting time.
- Decide on your educational goals
- Understand your financial situation
- Apply for financial aid, grants, and scholarships
- Take out loans to address your funding gap
Decide on Your Educational Goals
College is a time of development, both scholastically and socially. For many, it is the first time they are truly on their own, and the freedom to explore new fields of study, extracurriculars, and communities is a once-in-a-lifetime opportunity.
Deciding on your ideal educational experience should be the first item on the agenda, even before thinking about the finances involved.
Some students are looking to study at a large, public university, with a wide offering of academic departments and majors. Others are more keen on a liberal arts college with smaller class sizes and a more direct, personalized approach.
Some prospective students know exactly what they want to study, while others will spend the first few years of their education sampling numerous courses from a variety of disciplines. There is no one path, and everyone needs to define their priorities for themselves.
Defining the type of college experience you are aiming for will help you understand the financing required. This can help you define a pathway to achieve your educational goals.
Understand Your Financial Situation
The importance of understanding your financial situation is always a wise move before making major purchases (such as a house or a car), and your education is no exception.
Knowing the amount of savings you have at your disposal to pay for your academic pursuits will help you plan your next steps, and meet whatever funding shortfall might remain.
The cost of the university experience is not confined to academics, and also includes additional expenses including room, board, and books. Make sure to take these into account as well, to ensure that you will be able to meet all of your costs in the years to come.
Going through this process may also lead you to re-evaluate your desired university and academic objectives, and consider whether you might be able to fulfill them at a less costly institution.
Apply for Financial Aid, Grants, and Scholarships
There may be a funding gap between your savings and your costs, and financial aid, grants, and scholarships can help you address this prospective shortfall. Take the following steps to obtain funding assistance.
- (1) Fill out the FAFSA: Submitting the FAFSA–or the Free Application for Federal Student Aid–will enter you into the pool of applicants eligible to receive financial aid. It is also a gateway to receiving work-study funds and loans, and must be filled out every year that you are seeking assistance. You can access the form online on the government’s Federal Student Aid website.
- (2) Apply for Grants: Grants tend to be need-based, such as the Federal Pell Grant that qualified students can receive after filling out the FAFSA. A good chunk of grant monies come from schools and colleges themselves, but also look for civic organizations and corporations in your community who may offer funding for students in need.
- (3) Look for Scholarships: Scholarships are not only for highly talented athletes, and it is worth looking for ones that are awarded for academic achievement, past or ongoing public service, and for those engaged in particular fields of study. For instance, there are a number of grants and scholarships for students studying for in-demand professions with a social benefit, such as teachers and nurses.
Explore Loans to Fill in Any Financing Gaps
Not all of your college expenses can be met through savings, financial aid, or scholarships, and student loans can help you bridge whatever funding gap remains.
Not all loans are created equal, however. Filling out the FAFSA can allow you to apply for federal student loans, which have many benefits over privately-offered ones. These include income-based repayment plans and even loan forgiveness in certain cases. Also, federal loans often do not require a credit check.
Additionally, private loans are an option to help bridge the financing gap. These can be obtained from both your local bank or credit union or a national provider.
If you do choose to pursue financing, TipRanks’ student loan calculator can help you estimate your monthly payments, as well as the overall cost of your loan.
Conclusion: Paying for College
A lack of finances should not prevent anyone from accessing higher education and achieving their dreams. There are a number of paths that can help you achieve your academic and professional objectives.
Like every major purchase, you should first define your needs and your wants. There are so many educational institutions, some of which will be more cost effective than others. Make sure you consider different paths that might help you arrive at your desired destination.
Before pursuing outside funding, understand your own financial situation. Not only will this help you organize your future spending, but some of this information will be necessary to have on-hand when you apply for financial aid, grants, and scholarships.
Lastly, try your luck with governmental loans prior to seeking finance from the private sector. If you do opt to take a loan, use the TipRanks’ student loan calculator to help you understand both your monthly payments and overall cost of your prospective financing.
Financing is indeed a vital piece of your educational puzzle. But it should not be what stands between you and reaching your educational objectives.
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