7 ways to fund college

College is expensive. No matter how you run the numbers; public or private; scholarship or financial aid, college will be a substantial expense for your or your children. However the benefits of a college degree can set you up well for long term success in the job market, so it’s a consideration that you should have. Don’t fret about the big number though – there are a few different ways in which you can cover college tuition fees. It is worth taking the time to explore your options, so that you can choose the best form of funding for your needs. Below are 7 different potential ways to fund college.

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Savings

Some students are lucky enough to have savings set aside for them. This could include a college trust fund or some other form of savings account like a 529 plan. Most young students cannot save up for college themselves – college tuition fees are so high that it would take years. That said, there are some mature students out there that may have savings they have earned themselves that could be put towards college fees. Or if you’re a parent – consider starting a 529 for your child – even a little bit now can add up later!

Scholarship

A scholarship is when someone else sponsors your studies. You do not have to pay this money back. Some colleges and schools are willing to sponsor students who are high achievers – you may have to meet certain grades or obtain certain athletic achievements to qualify. There are also some companies out there who are willing to sponsor students, providing that they are excelling at school and are willing to work for their company when they graduate. Because only a few scholarships are available, the application process can be very competitive – you need to be certain that you have what it takes to achieve the high eligibility requirements. 

Grant

It is also possible to apply for federal or state grants. Like a sponsorship, this involves receiving money for tuition fees that you do not have to pay back. However, the eligibility requirements are different – many of these grants are aimed at those on a low income, and your grades need to be high but exceptional to be approved. Federal grants offered by the Department of Education include Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG) and Teacher Education Assistance for College and Higher Education (TEACH) grants. These are applied for via a FAFSA form. Your state may also offer its own grants, which are worth looking into. 

Federal loan

The most common type of student loan is a federal student loan. This is provided by the government and is applied for using an online FAFSA form. The amount that you are eligible for is dependent on the college you choose and your family income. No credit check is required, and there are flexible repayment options (such as not having to pay back the loan until 6 months after graduating and having repayments based on your income). This makes these loans an attractive option, however you must meet eligibility criteria.

Private loan

Private student loans are issued by private lenders. Whereas federal student loans are capped based on your income, private student loans are not capped, making it easier to find a loan that covers the entire cost of your tuition fees. Some students use these loans to supplement federal loans – covering any costs that a federal loan does not cover. A credit check or cosigner is required for these loans, and repayment options may not be as flexible (some lenders may expect you to start paying back the loan immediately while in college). Unless you have a good credit score, interest rates can also be higher on a private student loan. The eligibility requirements, rates and repayment options of these loans can vary drastically – as a result, it’s worth shopping around to find the best student loans. For some people, they could be a better option than a federal loan.

Free colleges

There are some colleges that don’t charge any tuition fees at all. This includes some community colleges and several specialist colleges such as the Curtis Institute of Music and University of Rochester School of Nursing. Not everyone is eligible for this free tuition – you may have to live in a certain state, meet certain grades, study a certain course and your family income may have to be under a certain threshold. Still, such colleges are definitely worth looking into. It’s also worth noting that some other colleges may not be free, but could still have relatively cheap fees that help to make tuition more affordable. Tuition fees can also vary in other countries – studying abroad could potentially result in cheap or free tuition. 

Working and studying

It’s also possible to fund a college degree by working and studying at the same time. It is generally not recommended that you fund your entire course this way, because you’ll likely have to be working quite a lot of hours in a high-paid job to cover tuition fees.That said, you may be able to use work to part-pay for studies – or, at the very least, living costs while you study. 

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