College costs continue rising, but strategic planning can make education affordable. This guide covers every option for funding education while minimizing debt.

The Financial Aid Hierarchy

Pursue funding sources in this order:

  1. Free money: Scholarships and grants (no repayment)
  2. Work programs: Work-study, internships, part-time jobs
  3. Federal loans: Subsidized, then unsubsidized
  4. Private loans: Only as last resort

Scholarships: Free Money First

Merit Scholarships

  • Academic achievement based
  • Often from colleges directly
  • May require maintaining GPA
  • Can be substantial ($5,000-full tuition)

Need-Based Scholarships

  • Based on family financial situation
  • From schools and private organizations
  • Require financial documentation

Specialized Scholarships

  • Field of study specific
  • Demographic-based (heritage, gender, etc.)
  • Employer/organization affiliated
  • Community and local scholarships

Where to Find Scholarships

  • School financial aid office
  • Scholarship databases (Fastweb, Scholarships.com)
  • Employer tuition programs
  • Community organizations
  • Professional associations

Federal Grants

Grants don't require repayment:

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Pell Grant

  • Up to $7,395 (2024-25)
  • Need-based, determined by FAFSA
  • For undergraduate students
  • No repayment required

FSEOG (Federal Supplemental)

  • $100-$4,000 per year
  • For exceptional financial need
  • Limited funds—apply early

Teacher Education Grants

  • Up to $4,000/year
  • Must commit to teaching in high-need areas
  • Converts to loan if teaching requirement not met

The FAFSA Process

Complete the Free Application for Federal Student Aid:

  1. Create FSA ID at StudentAid.gov
  2. Gather tax returns and financial documents
  3. Complete FAFSA (opens October 1)
  4. List all schools you're considering
  5. Review Student Aid Report
  6. Compare financial aid offers

Submit early—some aid is first-come, first-served.

Federal Student Loans

After grants and scholarships, use federal student loans:

Borrow in This Order

  1. Direct Subsidized (government pays interest in school)
  2. Direct Unsubsidized (you pay all interest)
  3. Parent PLUS (if needed, parents borrow)

529 College Savings Plans

529 plans offer tax-free growth for education:

  • Start saving early for maximum growth
  • Tax-free withdrawals for qualified expenses
  • State tax deductions may apply
  • High contribution limits

Work Options

Federal Work-Study

  • Part-time jobs for students with financial need
  • On-campus or community service positions
  • Earnings don't reduce future aid

Campus Employment

  • Jobs available to all students
  • Flexible around class schedules
  • Build resume while earning

Internships and Co-ops

  • Paid experience in your field
  • May extend graduation but reduce loans
  • Build valuable career connections

Reducing College Costs

School Choice

  • In-state public universities cost less
  • Community college for first two years
  • Schools with generous aid policies
  • Compare net price, not sticker price

During College

  • Graduate in four years (or less)
  • Take maximum credits per semester
  • Test out of courses (AP, CLEP)
  • Live at home if possible
  • Buy used textbooks

Avoiding Private Loans

Private student loans should be last resort:

  • No income-driven repayment
  • No forgiveness programs
  • Variable rates may increase
  • Often require cosigner

Creating a College Budget

Plan for total costs:

Direct Costs

  • Tuition and fees
  • Room and board
  • Books and supplies

Indirect Costs

  • Transportation
  • Personal expenses
  • Technology needs
  • Health insurance

Financial Aid Appeals

You can appeal your aid offer:

  • If circumstances changed since filing FAFSA
  • If you received better offers elsewhere
  • If there are special family circumstances

Contact the financial aid office professionally with documentation.