Smart Borrower Center
Tools to help you borrow better
Paying for college can be a challenge, particularly with the rising cost of tuition, housing and books. Fortunately, there are several options available to fund your education, so you don’t have to give up your dream of getting a degree.
Scholarships
Scholarships come in all different shapes and sizes and may cover full or partial tuition. They can be:
One of the best ways to find out about scholarships is to talk to a guidance counselor in your high school or college. There are also a number of online scholarship databases, such as www.fastweb.com and www.scholarships.com. These services are usually free and may also send you email updates when new scholarships are made available. And don’t forget to apply for regional scholarships. Since they are local, there may be fewer applicants, which could increase your chance of being awarded some money.
Grants
Grants, like scholarship money, do not have to be paid back. When you fill out your Free Application for Federal Student Aid, or FAFSA, you are also automatically applying for certain grants. Grants may be awarded depending on need, degree program or if you are working or researching within a specific field.
Work-Study Programs
The United States government has established Federal Work-Study Programs to help cover the expenses of students who demonstrate financial need. These Work-Study Programs usually encourage a student to work in their field of study or within the community in which they live. If you participate in a Work-Study Program, your employer is required to pay you directly, unless you request your paycheck be automatically put toward the expenses associated with your college program. Work-Study Programs can be a great way to make paying for college more affordable, while providing you with viable work experience that will look good on your resume.
Federal or private student loans
You may also choose to take out federal or private student loans. Federal loan programs are funded by the United States government, while private loans are funded by banks, corporations or credit unions. Loans may be a good option for financing your education, but remember to shop around for the one that best fulfills your needs. Also, keep in mind that student loans, just like mortgages or car loans, are serious business and you will be expected to repay them.
When it comes to paying for college, it pays to research your financing options.