Paying for College
Don’t wait until the tuition bill comes to figure out how you are going to pay for college. Consider this: If you are attending a 4-year private school, on average you will need to come up with $26,273 just for tuition and fees. For a 4-year public school, the average is $7,0201. Do you know how you are going to come up with that much money for college every year?
Knowing how to get money for college can be difficult, but it will help if you learn about college financial aid. The more you know about college financial aid, the more money you can save over your lifetime.
We’ve put together an easy 5-step Paying For College Checklist for you to follow. Make sure you complete each step before moving on to the next.
Student Bank Paying for College Checklist
- Submit Your FAFSA
Submit your FAFSA (Free Application for Federal Student Aid) every year, starting as a high school senior. To qualify for financial aid, including free grant money, you must complete and submit this form!
- Review Award Letter
You’ll receive an award letter from your school each spring, usually around April. If you are a high school senior, use your award letter(s) to compare college costs and college financial aid awards across all of your school choices. Your award letter will list all of the college financial aid that you will be receiving, including federal or state financial aid. If you received any state or federal grants (free money that you don’t have to pay back), the details will also be included in your award letter.
- Look for Scholarships
Your award letter will tell you if you received any scholarships directly from your school, such as athletic or academic awards. There are also many scholarships offered by other entities that you can apply for. Ask your school’s financial aid office if there are any scholarships that you can apply for related to your major, community, hobbies or your heritage. Then, do your own scholarship search on the web.
- Get a Federal Education Loan
If you’ve exhausted free money for college (Scholarships & Grants) and you are still in need of funds, you may need to take out an education loan. If you filled out the FAFSA, your award letter should detail the federal education loan amount available to you. The Federal Stafford Loan is the most widely-used, low-interest education loan for students. The maximum amount of money you can borrow as a dependent undergraduate in the Stafford Loan program (subsidized and unsubsidized)is based on your academic level:
- $5,500 Freshman
- $6,500 Sophomore
- $7,500 Junior, Senior and 5th year undergraduate students
- Research Private Student Loans
Many 4-year public and private school students are finding that the Federal Stafford loan does not cover all of their college costs. If you have exhausted your federal education loan funds, and you are still in need of money for college, you might want to consider private student loans.
A private student loan is a credit-based education loan in your name, and it usually doesn’t have to be paid back until after you graduate or drop to less than half-time status. Most undergraduate students will need to have a co-signer, like a parent or family member, to get approved. If you are paying for college with private student loans, make sure you educate yourself on how they work.