How to Pay For College
College can be one of the biggest expenses of your life. And if you are going to school for the first time or the second time, and are anything like the students in our church’s youth group, you might be wondering how in the world you are going to pay for college.
Maybe you have a dream college in mind, and every time you bring it up around the dinner table your family shoots down the idea because that school is too expensive. They may be right in stating that the college you have always hoped for maybe a little expensive, but if it is the right fit for you then why not try to do what you can to be able to afford it?
Before we continue further, what I’m not saying is “take out as much debt as possible to make your dreams come true.” Student loans you will notice are at the very bottom of this list, and that is for a reason. They should definitely be your last resort when looking for options to pay for school. While they certainly should be avoided when possible, student loans can be helpful after all other means of financing have been exhausted.
Estimate the Cost of College
Every college or university comes with a different price tag. Community college is a more affordable way to get higher education while going to an Ivy League school is going to cost much much more.
I do think that the cost of your education should play a part in the decision you make. One misconception about higher education is that the more you pay for your schooling, the better the school/education you will receive. This isn’t necessarily true.
Some schools charge more simply because they have more amenities around campus. This doesn’t always equate to receiving a better education. It is true however, that degrees from well-known schools may help you secure jobs in the future, but if you aren’t planning on becoming a politician, doctor, or lawyer I personally don’t believe that where you graduated from will matter as much to your employer.
Here are a few resources to help you get a realistic idea of what the schools you are considering may cost you.
The College Scorecard is a government website in which you can compare and contrast the costs of various schools as well as their demographics.
The College Cost Calculator created by Dave Ramsey Solutions is also very helpful in breaking down college expenses to help you understand how to better plan for the cost of college.
How to Pay for College
529 Plans
A 529 plan is an investment account that offers tax benefits when used to pay for qualified education expenses for a designated beneficiary. You can use a 529 plan to pay for college, K-12 tuition, apprenticeship programs, and even student loan repayments. There are two kinds of 529 Plans:
College savings plans: These plans work much like a Roth 401(k) or Roth IRA by investing your after-tax contributions in mutual funds or similar investments. They offer several investment options to choose from. Your savings will increase or decrease in value based on the performance of the investment options.
Prepaid tuition plans: These plans let you pre-pay all or part of the costs of an in-state public college education. They may also be converted for use at private and out-of-state colleges. The Private College 529 Plan is a separate prepaid plan for private colleges, sponsored by more than 250 private colleges.
It’s also important to note that if you are using a 529 plan to save for college, your savings will have a minimal impact on financial aid eligibility.
There are no yearly contribution limits to a 529 plan like there are to certain retirement accounts. However, if you happen to receive more than $17,000 from one person you will likely need to pay gift tax on that cash.
Most plans allow you to set up automatic recurring deposits from a linked bank account, but it’s not required. After you make a minimum initial contribution requirement (sometimes as low as $25), you can invest as much as you want, whenever you want.
Apply for Financial Aid
Anyone going to college should fill out the Free Application for Federal Student Aid aka the FAFSA form to find out how much financial aid they can qualify for. This is the form schools use to figure out how much money they can offer you toward attendance, plus what kinds of aid you qualify for. And there are no income cutoffs to be eligible for financial aid, so you never know how much you could potentially get until you apply.
This is a form you will need to fill out annually and it can be done completely online at this government financial aid website. The types of aid it covers include federal grants, work-study programs, state aid, and school aid. Be sure to check the deadlines for when the form needs to be turned in. Each state and school has its own deadlines, so be sure to get your form in early so you don’t miss them!
Family Support
While not all students are privileged enough to have family support as an option, I still would like to point out the fact that it can still be a valid way to help pay for college. Even if mom and dad can pitch in a little bit each semester, every bit of money can help.
Family support may also come from grandparents, aunts and uncles, siblings, or step family. It doesn’t hurt to ask to see if anyone would be willing to gift you a bit of cash to help pay for college – you may be surprised!
Scholarships
There are thousands upon thousands of scholarship opportunities out there. And even if you apply for scholarships that are only a few hundred dollars, trust me, those awards will add up.
Scholarships can be a great way to get “free money” for college! There are so many types of scholarships out there that there are bound to be a handful that you can qualify for. They do require a bit of work on your part to find and apply for, but they can be extremely worth it.
You can use scholarships to pay for tuition, books, room, and board . . . everything!
To find scholarships, start by connecting with your guidance counselors at both your high school and your college. Your college may also have a financial aid officer who is more well-versed in scholarships, and if that’s the case they would be the person to connect with. Let them know you are looking for scholarships.
Your guidance counselor will know of all the big scholarships out there meant to help students from disadvantaged backgrounds, first-generation college students, minorities, and others. They are also likely to know about any scholarships offered by local community organizations or businesses that want to help college students.
Be prepared to write essays about your personal experiences and your career goals. Each scholarship will have a different requirement for what they are looking for, so do your research and
Find a Job
I highly recommend trying to get some kind of part-time job during college, especially one that helps to support what you are studying in school. For example, if you are studying to become an elementary school teacher, find a job working with young children at an after-school program or as a camp counselor. If you are a business major, find an office admin job to get experience working in an office.
Not only will a job help you pay for college, but it will give you priceless experience that will look great on your resume once you graduate and apply for that “big kid job” you were hoping for. Or, maybe that part-time job will turn into something full-time for you! An added bonus to getting a job in college is that you will gain valuable experience managing money before diving into the real world.
Check out this list of easy jobs for college students to get an idea of a job in your wheelhouse.
Consider Community College First
When considering how to pay for college, it is important to consider all the ways in which you can make it more affordable.
While it may not be your first choice to go to community college, it is a very affordable way to get a lot of your general courses out of the way like writing, social studies, sciences, etc. You may or may not know this, but it doesn’t matter where you go to college the first few years of your education – whatever school you graduate from will be the only one listed on your degree.
In fact, I myself went to community college to begin my higher education! Not only that, but most summers after I transferred to a 4-year university I spent taking summer classes at my community college. This helped to save me a lot of money by getting some of those pesky electives out of the way. I was also able to graduate a semester early by taking this path too! It was like a savings triple whammy to go to community college!
Student Loans
While student loans should not be a first resort for ways to pay for college, they can still be helpful when figuring out how to pay for that last bit that the rest of these tactics do not cover. It is in your best financial interest to avoid debt as much as you can.
Take it from someone who had student debt herself and now frequently talks to people who are in deep student loan debt: If you think you’re worried about money now, it’s nothing compared to the stress and pain of life with student loan payments!
Paying back your student loans can take anywhere between 10 to 30 years once you graduate from college. If you put in the hard work and stick to a strict budget, it is possible to pay them off early. I ended up paying off my student loans only 4 years after graduating from college.
Even though there are ways to secure student loan forgiveness, it is not something you should count on as you go to college. So if that is your plan, then think again! There are many other great options for ways to pay for college.
Paying For College Conclusion
Higher education should be something that you can afford, but it is just a matter of figuring out how to pay for college. A degree can help you secure a better-paying job in the future so making college affordable is a must.
Which option will you choose for your college education?
You May Also Like
18 Things I Wish I Had Learned When I Graduated College
11 Encouraging Bible Verses for Times of Financial Struggle
5 Things to Consider Before Buying Your First House
What The Bible Says About Credit Cards
