Student Loans, Resources, and Free Money
Preparing for college is all about choices, be it filling in the circles on a standardized test or picking which school to attend. The most important choice, though, may be how to pay for college. Full scholarships are limited. They're usually reserved for outstanding athletes and a select few academic standouts.
What about the rest of us?
For most, paying for college is a search for funding through various resources. Thankfully, there are plenty of options. Unfortunately, there are many pitfalls, too.
Student Loans and Other Resources Are a Big Part of College Funding
Financial aid and scholarships can cover a good chunk of college costs, but most need student loans to fill the gaps. Many will borrow between $30,000 and $100,000 to cover the price tag of a four-year degree.
College graduates owe an estimated $1.3 trillion in outstanding debt and recent numbers from the federal government suggest many are working hard to pay it back.
The troubling trend of increasing forbearance, delinquency, and default should send a message to prospective students and their families: Do your homework.
If you or your child is considering college, consider educating yourself on higher education cost essentials. You can get started right now.
1. Figure Out the Cost of Attendance
Colleges across the nation are actually required to post their cost of attendance (COA) each year.
This COA accounts for the tuition and fees; books and supplies; room and board; transportation; and personal expenses the average student would pay in an academic year, or one fall and spring semester.
Look up the number and stare it down.
Now take a deep breath and let's get to work.
2. Fill Out The FAFSA
The Free Application for Federal Student Aid unlocks your access to federal student loans and grants, the most practical college funding source you have.
Federal loans carry low, fixed interest rates that tend to make monthly payments a little more palatable than the higher rates you could get from private financing or a commercial bank.
As the name suggests, it's free to complete the application. It's also relatively painless, although it may change from year to year. Grab the worksheet now and get your info together. Deadlines are pretty strict, so the earlier you submit, the better. If you need help completing the FAFSA, you can ask your guidance counselor or connect with the support team offered through our partner Student Choice.
3. Find Some Free Money for College
Whether it's for $50 or $50,000, scholarships help drop that COA in a hurry. The search and application process will take a lot of work, but the paycheck you could earn would be priceless.
To make the process a little more painless, write a general essay you can submit with applications as the opportunities arise. Many decision-makers simply want you to explain who you are, why you want to go to school, what you plan to do with your degree, and how the scholarship will help you achieve that. They may also ask for personal experiences that demonstrate your character.
Use that basic framework as a guide to write your template. Essay word counts vary; as a best practice, write long and learn to edit.
4. Find Even More Free Money for College
Every school has a Financial Aid office. Find it and use it. Simple enough, right?
5. Use Special Credit Union Student Loans to Fill the Gaps
After you've gathered all your federal funds, scholarships, and financial aid, take another look at that cost of attendance. If you're like most, you're going to need more.
Student Choice offers students and parents options.
Visions Federal Credit Union offers many benefits to member-owners, including affordable student lending in the form of Student Choice. These lines of credit are exclusive to credit unions and offer competitive rates, in-school deferment, and a graduated repayment option.
We're also dedicated to financial literacy when it comes to college planning. Find more information, tips, and our applications at the Visions Student Choice website.