How to Pay for School

In order to pay for school, you need to apply for financial aid. Applying early through the FAFSA ensures that you will receive financial aid for the coming year. Every year, there are a record number of students seeking financial assistance, so delaying this process could jeopardize your financial options.

Visit the government's Free Application for Federal Student Aid website to fill out your FAFSA.

Federal Loans and Grants

Your FAFSA may qualify you for federally funded grants (a popular one is the Pell Grant), which never have to be paid back. There are also grants at certain schools that are determined through an application process and/or FAFSA. After your grants (and scholarships, see below) have gone through, it's time to apply for federal loans.

There are two kinds of federal loans that an undergraduate student can take out, that a graduate student can take out, and that a student's parents can take out. An undergraduate's loan does not accrue interest and does not have to be paid back until the student graduates (unsubsidized). A graduate student and a parent (PLUS Loan) have loans that will accrue interest (subsidized) but still do not have to be paid back until graduation. Loans are given a six month grace period after graduation before payment plans start.

Private Student Loans

Many students find that federal financial aid cannot cover their expenditures. The student can turn to private student loans at this point. Similar to a car loan or home loan, they are funded by various financial institutions and participating banks. They are awarded based on credit history, like any other bank loan. Your parents can sign with you if your credit is not established or is less-than-perfect.

These loans have higher interest rates than federal financial aid. Before taking out a private loan, consider your future career and whether you will be able to cover the additional financial expense. Also make sure your private loan is from a reputable source, and not a company that is trying to cheat you out of money by offering exorbitant interest rates on your loan.

Scholarships

Scholarships are yet another form of financial aid that often involves the student writing an essay. Scholarships, like grants, do not have to be paid back. They are awarded for achievements or specific background requirements.

When looking for a scholarship, it is best to consult an academic advisor and/or investigate online.

Other Forms of Financial Assistance

Students that are currently in the workforce should ask their employers if they have a program that helps pay for school. Employers will often cover part or all of the expenses of a college degree if it is in a field that is beneficial to the company.

Military personnel should consult advisors that can help them with military-related financial aid, or visit our Military section. The Post 9/11 GI Bill is one of many examples of financial assistance available to active duty, reserve, and veterans going back to school.