There are many options to help you pay for school, whether you’re a graduate student, at a two-year school, or only enrolled part time. In fact, a majority of the respondents to a recent Student Health 101 survey said they have financial help to pay for tuition and other expenses.
For full-time, undergraduate students, scholarships can be offered through local communities, by schools for academic or athletic achievement, or from national resources. However, options for part-time or graduate students may be less prevalent. Matthew Vallejo, vice president of financial aid and services at Ashford University in San Diego, California, suggests that these students get creative about where to search for funding.
He encourages students to investigate their fields of study for possible scholarship options. Natalie K., a graduate student at the University of Southern California in Los Angeles, receives a stipend for work related to her Ph.D. “I’m paid as a research assistant through my lab,” she explains.
If you’re working while attending school, Vallejo also recommends exploring company benefits. “Your employers may offer tuition assistance for those working full time,” he says.
Jamie Dickenson, a certified educational planner, helps students figure out how to pay for college. She emphasizes the importance of utilizing your school’s financial aid services and applying for aid each year. If you didn’t get any funding last year, try again. There may be new scholarship opportunities available.
There are many sources for grants, from state and federal governments to non-profit organizations. Federal grants, such as the Pell program, usually have a maximum dollar amount that can be awarded over a person’s lifetime and are limited to undergraduate study only.
The government also offers Work-Study jobs: Part-time positions that are often on campus and coordinated directly with your school. Vallejo points out that part-time jobs can help with expenses that some students forget to consider. “Part-time employment can help with the indirect costs of education,” he explains.
There are many different kinds of loans as well as lenders.
The federal government runs a program called Federal Student Aid, for example, and offers both subsidized and unsubsidized loans. These are available to undergraduate students who can demonstrate financial need.
Unsubsidized government loans are available to anyone, regardless of necessity. This is true of bank loans or private loans, too. Private loans are based in part on your credit score and also on your debt-to-income ratio, which compares your current income to the amount of money you owe. Vallejo encourages students to be mindful of additional fees when taking out private loans, especially if your debt-to-income ratio is high. You’ll likely have to start paying interest on these loans right away.
Applications
Loan applications can be complicated. For a bank loan, you might need a cosigner, someone who’ll be responsible for paying back your loan if you can’t. For government loans, you may need detailed information from your parents or guardian if you’re not financially independent.
If you’re offered a loan, you don’t need to take all of the money available. If you don’t need it, don’t borrow it! The “cost of attendance” information published on your school Web site can help you plan for how much you’ll need.
Managing Loans
Once you’re in school, keep on top of your loan:
Some loans have grace periods, meaning time after you’ve borrowed when you don’t need to make payments. Inquire about factors that may influence when you need to start repaying—such as certain kinds of work or community service. Some programs even forgive some portion of loan debt, meaning some of it won’t be owed.
Consider starting your repayment before you graduate, if you can. Vincent H., a student taking online courses at Ashford University, shares, “Start paying early, and make sure your payments are on time once you graduate.”
If you have loans for living expenses, it may be tempting to use some for items that aren’t related to school.
There are plenty of free Web sites and apps for managing financial commitments. You can set up payment reminders and goals, and see everything in a spiffy graphic form, too.
Theresa is a freelance writer and recent graduate of the University of King’s College in Halifax, Nova Scotia.
At some schools, you can participate in federal Work-Study programs. In these jobs, you’re paid partially by the U.S. Department of Education, and partially by your school.
The jobs can be on- or off campus, but will likely be in your area of study or in community service. You apply for these positions in the same way you would a federal student loan, and if you get one, you’ll work part-time and make at least minimum wage.
Not all schools have Work-Study positions. If yours doesn’t, ask about other paid roles on campus or in your community. You may get a break on some of your school fees if you find a job at school.
If you receive money directly from a lender, it might be tempting to spend a bit of your big check on a nice dinner with your family or new technology. But remember: You’ll be paying it all back later, with interest.
Consider making payments throughout your time as a student, even if it’s not required. Try to put a little extra toward the loan when you can.
It can be hard to keep track of how much you’re spending. Try organizing your money into separate accounts and making a budget for the school year. While a loan may seem like a lot of money at first, figuring out how to make it last for the whole year might put things into perspective.
