How to Pay for College When Financial Aid Isn’t Enough
College can be one of the most significant investments in your life, but rising tuition and limited financial aid options often leave families struggling to make ends meet. When federal grants, merit scholarships, and standard financial aid packages aren’t enough to cover your college costs, it’s easy to feel stuck. But with some creative thinking and effort, there are ways to bridge the gap. Here are some options to consider:
Ask for more financial aid
Can you ask for more money from the college? Yes. Many families are unaware they can appeal the initial financial aid decision. There are two types of financial aid awards you can appeal: need-based aid and merit-based aid.
If there have been significant changes in your family’s financial circumstances, such as a job loss or unexpected medical expenses, appeal need-based aid by communicating this to the financial aid office. Provide documentation supporting your case and explain how these changes have affected your ability to cover educational costs.
To appeal merit-based aid, you should have a reason to increase the aid such as other higher award offers from other schools or an improved academic performance.
Sometimes, colleges can adjust aid based on new financial information or other compelling factors.
Consider taking a gap year to work and save
If paying for college right now is a stretch, taking a gap year to work and save can make a significant difference. Many students use this time to build up a financial cushion and gain valuable work experience. This can help reduce the amount you borrow and ease your financial stress during college.
Gap years are becoming more and more acceptable, especially with colleges. Once you have been accepted, it’s not uncommon to defer admission for a year and use that time to either travel or, in this case, work and save money to pay for college.
Work during college
Studies have shown that students who spend time working during college actually do better in the classroom. Students who work must learn how to structure and manage their time to work around class assignments. This translates into not delaying assignments and scheduling time to study for exams.
When college students do decide to work, there are three options available to them: on-campus jobs, off-campus jobs, and paid internships. These jobs can help supplement your financial aid package.
Apply for scholarships
There’s a common misconception that scholarships are only available for high school seniors, but nothing could be further from the truth. There are scholarships available for incoming and current college students.
Many scholarships are often career or college-major-specific and sometimes come in the form of grants and fellowships. To fill the gap in my daughter’s financial aid package, she contacted the financial aid office and the career center on campus. She spoke with department heads and asked if they knew of any scholarship opportunities. After a few queries, she found scholarships for current students in her major that she had not applied for.
Also, search online for private scholarships specifying “current college student” and do a basic Google search with the same terms. You will locate many scholarship opportunities for current college students.
Borrow wisely
Once your family has explored all financial aid opportunities and pooled existing resources (e.g. 529 college savings plan and other family contributions), you may still need to turn to student loans. However, your family should only borrow what is needed to fill the remaining financial gap.
The first way to approach student loans is through federal loans. Federal loans have more flexibility and have certain protections and benefits. This is why maximizing federal loan opportunities is best before taking out private loans.
For example, you can enroll in a repayment plan that matches your financial situation and may be eligible for loan forgiveness opportunities.
Your child should borrow funds in this order:
- Direct Subsidized Loans. Subsidized loans typically have the lowest rates, and the government will cover any interest that accrues while in school.
- Direct Unsubsidized Loans. Unsubsidized loans aren’t need-based, so any student can qualify for them. However, you are responsible for the interest that accrues during school.
- Private loans. You will likely need a cosigner (your parents) to qualify for a private loan. Shop around with various private lenders to find the lowest rate and best terms.
Your parents may also have the option to take out a federal Parent PLUS loan in their name to help fund your education.
A good rule is never to borrow more than your expected starting annual salary. The National Association of Colleges and Employers (NACE) found that the average starting salary for 2022 college graduates was $60,028. Keep in mind that this is an average. Your starting salary out of college depends on what you majored in, where you live, and where you went to school. So, you could be earning much less or much more than the national average.
Try crowdfunding
Crowdfunding. It’s the new way to raise money for worthwhile endeavors. But did you know that you can use it to raise money for college? In the spirit of the famous quote, “It takes a village to raise a child”, crowdfunding takes college savings to a whole new level.
Though it might seem awkward to ask for money for college, crowdfunding sites act as intermediaries. These sites allow students to submit a personal appeal for funds. Much like wedding registries that everyone is familiar with, crowdfunding sites act as a college registry to seek money to pay for college.
GoFundMe is a trusted and easy way to raise money for education needs. Students can share their educational aspirations, their challenges, and how the funds will help them achieve their goals.
A new and innovative college funding website, TakesaVillage, provides a platform where students can securely crowdfund for their education, ensuring both students and donors alike that the money will go directly to pay for tuition. TakesaVillage’s tool is different from other crowdfunding websites. Instead of funds being used at the discretion of the fundraiser, TakesaVillage sends the money to the student’s college and deposits it into the school account.
If you’re reluctant to solicit gifts for your college funds, Gift of College would be an excellent crowdfunding source. With this unique offering, friends and relatives can contribute to a 529 savings account by purchasing a gift card for special occasions and holidays.
The cards offer a tangible way to contribute to a college fund rather than simply writing a check. You can purchase these gift cards online at their website or at various merchants to use as gifts.
Check employer tuition assistance programs
Some companies offer tuition assistance programs for their employees or even for their employees' children. If you or a family member work for a company that offers this benefit, take advantage of it. Many programs require you to stay with the employer for a certain period, so consider this in your long-term plans.
Here’s a list of companies that offer tuition assistance programs: 12 Companies That Will Pay for Your College Education.
Use payment plans
Tuition payment plans offer a convenient option for managing college fees by allowing students and families to spread costs over time. These plans last up to a year and are an excellent alternative to loans. They ease the financial burden by breaking bills into equal monthly or academic term payments.
Families can pay for college out of pocket without interest, typically only incurring a low fee of $100-$200. These plans cover direct costs like tuition, fees, and sometimes housing and meal plans. Most plans also allow automatic bank transfers for timely payments.
Tuition installment plans are a less expensive alternative to federal or private student loans. Unlike loans, most tuition payment plans do not require a credit check.
If the college you attend offers this option, students and parents can sign up for a tuition payment plan through the bursar’s office, cashier’s office, or the college financial aid office. Each college typically contracts with only one tuition installment plan provider. Some colleges manage their own monthly payment plan.
Modify your college plans
If traditional four-year college costs are overwhelming and unmanageable, consider alternatives:
- Live at home: Commuting from home can save thousands on living expenses. Look for a school within driving distance to make this feasible.
- Community college for basic credits: Starting at a community college and transferring to a four-year school can save thousands. Just ensure your credits will transfer to the four-year school.
- Choose another college: Take a good luck at the other colleges offering admission. Are they more affordable? Do they offer more financial aid?
- Take CLEP tests to earn credits: CLEP stands for (College Level Examination Program). They are 50-120 question tests given by the CollegeBoard. If a student passes a CLEP they are granted college credit as if they had taken the actual class. There are CLEP tests for 33 subjects, and they give students the ability to test out of 30-60 credit hours before even stepping foot in a classroom. You can defer admission, work, save money, and take these tests to get your basic requirements fulfilled, decreasing your overall cost of college.
Appily's scholarship database
Paying for college is challenging, but with some creativity and persistence, you can find ways to make it affordable. Each approach requires planning and effort, but taking proactive steps can minimize debt and give you a financial head start in your post-college life.
Remember, education is an investment, with many paths to making it affordable. You can always start by checking out Appily's scholarship database. We have millions of dollars worth of scholarships you can apply for to help bring down the cost of college, and they've all been vetted, so they're legit and scam-free.
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