Your child was accepted to their dream college. However, the acceptance letter made no mention of a scholarship. What happens next?
Good news: most students receive some financial aid to offset the expense of attending college over the “sticker price.”
For instance, the sticker price of tuition, housing, and board at the average private institution was $45,370 last year. However, The College Board reports that the average student really paid $26,080. While the sticker price at public colleges was $20,090, the average amount paid by an in-state student was $14,210.
You can still manage the expense even in the absence of a scholarship thanks to the many financial aid options available. It’s understandable that you might be a little confused about how the financial aid system operates; after all, it can be complicated. There are grants and scholarships that you are not required to repay, as well as loans that you are. Your entitlements may vary depending on your financial level and academic standing.
Here are seven other methods to assist with college expenses:
1. Awards
Grants are awarded by colleges, states, and the federal government; they are non-repayable. For the most part, awards are made on the basis of your financial need as assessed by the income you declared on your FAFSA, or Free Application for Federal Student Aid.
The financial assistance award letter that you get from the school should include information about any grants you have received. This may have been sent later, but it may have arrived with your acceptance letter.
undergraduates at public universities received grant aid on average of $5,000 last year, while students at private universities received almost $16,700. The college itself typically gives out the largest grants.
Colleges will attempt to bridge the funding gap with a grant, taking into account how much they believe your family can afford to spend for education. More than others, some promise to close the gap.
On the other hand, families making less than $30,000 a year are typically the recipients of federal Pell Grants, which have an annual ceiling of $5,920. State funding are not always available.
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2. Request greater funding from the college.
You can bargain for financial assistance, yes. Experts advise having the student draft an official letter of appeal and then give them a call.
Reinforce your reasons for being a good fit for the school and whether or not you were offered additional financial help by a similar university.
Perhaps you could explain your financial status more clearly. There are occasions when your family may have unaccounted-for expenses, such as medical bills. Since the FAFSA is predicated on your income from the previous year, it’s also a good idea to indicate whether your family’s financial situation has altered in the preceding year.
3. Jobs for study
For qualified students, these are part-time positions on or close to campus, based on their financial situation and the funds provided by the institution. To be eligible, you must have filed the FAFSA.
Students who work study jobs receive direct income, usually once a month. Hourly pay is the norm for undergraduates, although your total earnings for the year cannot be more than your work-study grant. The amount ought to be mentioned in the letter the school sends you regarding your financial aid award.
Seeking for another part-time employment could be worthwhile if you are not eligible for work-study. College students looking for odd jobs like dog walking, tutoring, and babysitting as well as work connected to their academics can find positions posted online on websites like QuadJobs and WayUp.
4. Submit an application for a private scholarship.
There are thousands of private scholarships available from businesses, charitable organizations, and local associations. Consult your guidance counselor in high school or utilize a free internet resource such as Scholly to see what scholarships you might be qualified for. A business named NextGenVest provides a free adviser who can assist you comprehend your aid grant and recommend scholarships.
5. Apply for financing.
Although loans ought to be your very last option, they’re frequently unavoidable if savings, grants, and scholarships are insufficient to cover the full cost. Twenty percent of the average family’s college expenses are met by loans.
Prior to going to a private lender, you should get a loan from the federal government because they have better borrower safeguards and lower interest rates. This is just one more justification for completing the FAFSA. If you failed to turn in the form, you will not be eligible for a federal student loan.
But regardless of your family’s wealth, you ought to be eligible to borrow. First-year undergraduates are eligible for a $5,500 loan. Certain students who exhibit greater financial need will be granted access to subsidized loans; these loans will not become payable with interest until the students graduate.
Parents can take out a PLUS loan, a different kind of federal student loan, to assist their child in paying for college. PLUS loans have a higher interest rate and call for a credit check. The maximum amount a parent may borrow will be decided by the school, but it should be enough to pay for your attendance costs less any additional financial aid you may receive.
Once more, the amount you are eligible to borrow annually from the government should be disclosed in the financial assistance award letter that you receive from the school.
6. Submit a $2,500 tax credit application.
After deducting books, tuition, fees, and room and board from your taxes, you can claim an American Opportunity Tax Credit of up to $2,500 per child.
A parent can claim the tax credit if their modified adjusted gross income is less than $90,000 (or $180,000 if filing jointly).
7. Live off campus or enroll in a community college course.
One can save a substantial sum of money by living at home and commuting to school. Room and board typically cost $10,440 in public institutions and $11,890 on average in private colleges. That might be the same as what some universities charge for tuition.
If money is really limited, it may be worthwhile to enroll in a community college first, then transfer to a four-year university. In 2017, $3,520 was the average cost of tuition and fees at a community college.
