College Financial Aid

If you’re on your way to college, one of your biggest concerns is probably “how am I going to pay for all of this?” Debt is a huge problem for college students nowadays, especially those who are attending private institutions, where personal debt can easily reach over $100,000. College financial aid is a tricky business, since over the course of four years college career a lot of money goes out with very little coming back. College financial aid offices can sometimes help students along, however, if you’re already in college, then you're already tailing behind.

Believe it or not, one of the best college financial aid strategies -- especially if you're attending private college -- is to get as many scholarships as possible. Scholarships are more attractive than loans since they represent free money that never has to be paid back.

What is Need-Based Financial Aid?

Most colleges offer need-based and merit-based financial aid. Need-based aid is usually based on how much money your parents make and how many siblings you have, since your parents are expected to help pay for your education and the education of your siblings. Even if your parents don't help to pay for your education, the system presumes that they do.

What is Merit-Based Financial Aid?

Merit-based financial aid is based on your grades and your activities from high school. Private colleges are much more likely to give out large merit-based scholarships than public colleges since the private schools usually have more donors who set up scholarships in their names or contribute to a certain scholarship fund. These institutional scholarships can cover up to half of your tuition, or more, every year.

Also, don’t be afraid to look for college financial aid in the form of scholarships from unexpected places. Search your hometown for various community organizations who offer scholarships like the Knights of Columbus or the Humane Society. Though these kinds of community organizations may not be able to contribute thousands of dollars in scholarships, every little does help, especially when it doesn’t have to be repaid.

Is there Federal Help for College Financial Aid?

Finally, if scholarships and your savings aren’t enough to cover your college expenses, you’ll probably need to apply for a student loan. First, complete the Federal Application for Student Aid (FAFSA) to check which federal loans you qualify for. Someone at your college financial aid office can then advise what loans are best suited to your personal circumstances and they'll tell you when you should start paying them off. Even though the prospect of paying for college can be a scary one, it’s still one of the best investments you'll ever make.

College Financial Aid - Stack the Odds in Your Favor

What is Need-Based Financial Aid?

What is Merit-Based Financial Aid?

Is there Federal Help for College Financial Aid?