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Financial aid has becomes as ubiquitous on college campuses these days as iPods, laptops, and oversized sunglasses. With the exorbitant cost of higher education, very few college students can make it through the undergrad years without borrowing substantially. However, you’d be surprised at how many ways there are to finance your education. It’s not just about filling out the FAFSA and hoping for the best anymore. In this post, we’ll give you some college finance tips to help you make the most of your financial aid.
If you’ve resigned yourself to the fact that you’re going to be up to your eyeballs in debt when you graduate, you might be partially correct. But it’s not as bad as you think it is, especially if you’re savvy about the way you finance your education. When considering how to pay for college, don’t jump immediately on the borrowing bandwagon. Instead, first consider alternative sources. For instance, savings will prove invaluable in financing your education because they are essentially a free way to get yourself through school. Before you apply to college, start socking away your part-time job earnings, your tax refund, and any other sources of income you have. It requires discipline, but it’s a lot easier to save than it is to make sky-high student loan payments for 20 years. Additionally, exhaust every possible source of free money you can. Scholarships abound; it’s just a question of finding ones for which you’re eligible. Do some research, ask around at your prospective colleges, and apply for any scholarship for which you might have even a remote chance of getting.
When it comes to borrowing to finance your education, there is a right way to borrow and a wrong way to borrow. Your first choice when it comes to loans should be federal student loans because they have the lowest interest rates and the most repayment flexibility. To get these loans, you will need to fill out the FAFSA. Make sure you meet the deadline so you qualify for funding in time to start school. If your federal aid and funds from other sources are still insufficient to cover the cost of your education, only then should you consider a private student loan. These loans have higher interest rates and more stringent qualification standards, so use them with caution. Also stick to borrowing only what you need-you’ll want to kick yourself down the road if you over-borrowed to pay for spring break trips, bar tabs, and pricy lattes.
