Blog Post
8 Tips to Survive College by a College Student
Aug 22, 2019
Students Guide to Paying the dreaded Tuition Bill.
College is a time for you to learn and grow, and so much transformation can occur in those short years. By the time you walk across that stage at graduation, it feels like you’ve blinked and changed into a completely different person.
Money shouldn’t be the thing that prevents you from getting an education, and that is why we have compiled this list of 8 tips to help you survive the financial aid process and fund your college experience.
Tip 1: FAFSA
The Free Application for Federal Student Aid (FAFSA) is your best friend for getting help funding higher education In most cases, it is a requirement for universities when considering your financial aid package. It takes a bit of time to fill out, but it’s worth it.
The FAFSA determines the amount of federal aid you receive by calculating (among other things) your Estimated Family Contribution (EFC), or in other words, the approximate amount of money that your family will need to contribute to your education. This number is impacted by your family’s income level, how many people live in your household, and the number of dependents supported by your parents. Unfortunately for some, the EFC reported by FAFSA is much higher than reality.
Make sure you file as soon as possible. You can now file the FAFSA as early as October 1st. Filing early will give you priority in the allocation of financial aid. With the FASFA, the early bird truly does get the aid.
Thankfully, though, there are many more options than just federal aid to help you pay for college.
Tip 2: Scholarships, and Grants - Find Free Money
Who doesn’t love free money?
Free money comes in all shapes and sizes, and you can find free money in some of the wildest places. Free money comes in the forms of scholarships, grants, and stipends, which are all different forms of funding given to students who meet certain requirements (determined by the person/institution offering the money), all of which does not have to be paid back.
Some free money is completely free, and some free money is more so “free” than free, in the sense that you may be required to enroll in a program at your university, do volunteer work, complete specific tasks, like an essay or work study. But hey, free money is free money. When you have a big bill from your university, anything and everything helps. Scholarships, grants, and stipends aren’t just for one type of student, there are so many options out there that can help you pay for college, some big, and others small.
There are scholarships that are need-based, merit based, and even some through contests. Scholarship contests are usually essay-based, and the rewards are oftentimes small, so don’t expect to pay off your entire schooling with the small scholarships, but don’t shy away from them, either, because as mentioned previously, any help is better than no help.
Tip 3: School Choice - Choose the University that Chooses You
College, just like Pokémon, is a “You choose, me, and I choose you” relationship. Remember when applying for college that you have just as much to offer that university as that university has to offer you. Make sure you apply to a decently wide variety of universities, and work on your resume and interview skills in preparation. Some universities are more willing to give out aid, and each university bases the amount of aid they offer you on various factors, so make sure you know your own worth before choosing a university that undervalues you.
In today’s job market, school prestige and reputation are important, but it’s not everything. It’s better for you to have a degree from a school that offered you a better aid package a than to pay an arm and a leg to attend the best “reputational” school that undervalues you and increase your student loan debt.
Additionally, keep in mind how you apply to your universities. You can contact their admissions office and discuss getting an application fee waiver, and sometimes you may qualify for fee waivers through other means. There are three main ways to apply to a university: Regular Decision, Early Action, and Early Decision. It is recommended that you apply Early Action, which means that you apply well before the end of their application deadline, and this application status will help you get priority consideration for financial aid. Early Decision is not recommended in most cases for applications, as Early Decision applications are usually binding agreements, which means that if they accept you, you must attend that university, and they admit you on the assumption that you are not as in need of financial aid as other applicants. Early Decision is not necessarily a bad option, as it will increase your odds of getting accepted to your university, however, if you need aid, Early Action is probably your best bet.
Tip 4: Financial Planning - Think Ahead and Save
Parents, students, grandparents, aunts, uncles, anyone can help you fund college, but make sure you start early. If you are currently in high school, the earlier you can start saving money for college, the better.
If you are lucky, your parents started a college fund, a 529 program or a Coverdell Education Savings account also known as an Educational IRA or Coverdell IRA for you at an early age. Even if they have, it may not be enough to cover the cost of attendance, since the cost of tuition has outpaced inflation and most savings rates over the past 20 years. So, start as early as possible, because when you are eating ramen in your room, you will regret all those trips you made to the coffee shops and fast food restaurants when you were in high school. Set up a savings plan for yourself and take out a percentage of your check each week to put in a college fund for yourself, maybe put a lump sum in a Certificate of Deposit. The theme of funding higher education is that anything is better than nothing, and with hard work and dedication, you can assemble an army of funding sources to help you win the battle with your tuition bill.
Tip 5: Parents - The Parent’s Role
While previously it was mentioned that parents can’t or won’t cover everything, it’s important to have conversations with your parents about their role in your college experience, because parents help in different ways.
Having these conversations as early as High School Freshman year will help clarify where everyone stands in the process and there will not be any surprises when the tuition bill arrives. It also allows a few years for you to work and save to avoid taking out student loans.
Many families must turn to student loans for college, which will be discussed later.
Many parents will cosign loans for their kids, which will help lower the interest rates of the loan, to ensure that you pay the smallest amount of money as possible for your education.
Consider applying to colleges near your parent’s house and consider living at home through college and commuting if finances really get in the way. Sometimes just having a free place to stay is the best help you could receive from your parents, as campus housing can come with a large price, and living with roommates off campus can be a risky investment, because they may not be financially reliable. Living at home for the first two years or your whole school adventure may not be exciting to you. But saving 10,000- 15000 per year in living expenses might make it well worth it and prevent you from having to move into the basement after graduation. In a lot of cases, parents are the ones that encourage their children to go to college, so they will be willing to offer as much help as they can, but in the event, they aren’t, make sure that you take that initiative.
Remember, paying for college is your responsibility in most cases families help.
Tip 6: Work Study - Get a Job (or Jobs)
Jobs are so important. Work study programs through college are helpful to students in paying for college expenses.
Don’t forget that once you pay off your college bill, there are other expenses that you will have. These include, but are not limited to:
Textbooks
lab fees
parking passes
recreation
food
and any other bills you may accrue.
Financial planning and budgeting are super important.
There are so many opportunities for jobs on campus, and if you apply to enough places, you’ll find something that fits you.
Pros:
On-campus jobs are that they will work around your class schedule.
The experience is invaluable for your resume.
Cons:
You are limited to how much money you can make.
Wages are usually low, and raises don’t exist.
So, there are pros and cons to working on campus, but campus jobs are usually easy and not labor intense, so you may be able to get homework done or study while you are working.
Off campus jobs are usually a bit higher paying, and although some are less willing to cooperate with your schedule, a lot of them still will be flexible, because you’re likely not the first college student to work with them. Also, it’s nice to get off campus and have a break from the hecticness of your campus. Make sure that you don’t put too much on your plate, but if you’re able to have an easy on campus job that lets you do your homework, you may have time to add on an additional job.
Make sure that you look at your personal finances and your ability to manage time before you go off getting multiple jobs
Tip 7: Student Loans - Federal Student Loans
Federal Student Loans are usually the first step in the loan process for the most part they have better interest rates than any other type of loan you can get, however, federal loans have low borrowing limits and charge an origination fee, so make sure you take that into consideration when calculating how to pay your cost of attendance and budget..
There are two types of interest rates on federal loans: subsidized and unsubsidized. The type or types of loans received will be based on the results of the FAFSA.
Subsidized loans are interest free while you are in college, as the government will cover the interest cost while you are pursuing your education.
Unsubsidized are those that accrue interest while you are in college and you must pay the interest.
These loans are based on the results of your FAFSA and usually will not pay all of your educational costs. You may need to find other means by which to fund the remainder of your educational costs.
Tip 8: Student Loans - Private Loans
Private loans are generally the last step in paying for college. They are not uncommon at all. Most families cannot write a check to pay off the bill for college, so private loans are what help bridge the gap.
Private loans are credit based, most do not charge an origination fee, and they have high borrowing limits.
In many cases you can use a Private loan to borrow the expected family contribution, if your parent or you do not have the EFC saved.
It is imperative that you borrow responsibly, since you will have to pay back the loan with interest.
Make sure you check out all your available resources before going into a private loan, but don’t be scared to get one. If you and your parents have good credit, the private loan may have a better interest rate than the federal loans.
One of the most crucial factors to consider when finding a good private lender is the interest rate of the loan, and the type of interest rate.
Some loans have fixed interest rates, and other loans have variable interest rates. Which one you choose is up to you and what level of risk you are willing to take. Variable rates change based on the market among other factors. You should seriously consider what happens to your payment amount if rates increase dramatically.
Fixed rates are the safer way to go, because if you get a good fixed interest rate of your loan, then you will never be surprised by a spike in the interest rate.
Also keep in mind your minimum payment, and whether you must pay while you are in college, or whether you can defer the payments until afterwards. Loans are somewhat complex but are incredibly helpful for helping to cover the cost of college, so don’t shy away from them, but also make sure that you are a smart shopper for loans.
You should consider the payment amount of your loan after you graduate and how that will fit into your budget.
College is the gateway to a great life, and while the costs of education may be high, the benefits are certainly well worth it. There are so many options out there for you to get aid, from your family, outside institutions, the government and private lenders. While there are all these options out there for free and cheap money, most families are still left with money to pay out of pocket that they don’t have.
Private loans are the solution to fill that gap. Remember, finances shouldn’t be the thing that stops you from pursuing an education, all you must do is be a smart shopper, and you can find the resources you need to pay for your education.
2024-2025 Federal student loan interest rates
How to pay for school
Timeline of student loan forgiveness. What we know today 1/6/2023.
1/1/2023 repayment options. The programs are subject to chnage.
We are happy to announce our new international student loan solutions. You will be able to find solutions here to attend school and potentially refinance those higher rate loans. We know that international students have limited resources to attend school. Many of the loans must be cosigned or collateralized. Most lenders require a U.S. citizen or permanent resident to cosign. We found some lenders that do not and are more flexible. You can learn more here Are you an international student that has graduated? Want to potentially save some money? Who doesn't? Refinance Loans International students often have student loans that are cosigned and collateralized by their families with a home country bank. MPOWER is the leading lender in the world for international students and will refinance international student loans with no cosigner or collateral required while also offering competitive fixed rate loans. For non-U.S. citizens living and working in the U.S., no-cosigner and no-collateral loans can replace cosigned student loans, helping young professionals reduce their payments significantly in both the short and long term. MPOWER refinancing loans allow young, professional, non-U.S. citizens to: ● Release a cosigner and collateral ● Reduce their interest rate and lower monthly payments ● Eliminate the need to wire money internationally every month ● Potentially qualify for employer benefit programs that pay up to $5,250/year toward student loans tax-free ● Build U.S. credit history You can learn more here
Hopefully, you know you can get a free credit report annually at https://www.annualcreditreport.com/index.action What I didn't know was that due to covid, you can now get them free weekly until April 2021. I just found out about this and wanted to get the word out. Please share with your friends and family. The process is easy and it's free, as long as you do not add on your score. Just get your report and review it for any inaccuracies or fraudulent activity. Money is tight and people are worried and we have seen stories of folks getting desperate. Stay informed and stay safe. #freecreditreport #sharetheinfo
College Aid Direct wants to take a moment to thank all of the Health Care Professionals for their amazing efforts during the Covid-19 pandemic. We are moved by the never-ending stories of your compassion, long hours, and sacrifice. You rose to the occasion when humanity needed you most. We know we aren't out of the woods yet but hopefully, you are able to take a moment to catch your breath. We are here to help you. If you have any questions on your Student Loans, getting new student loans, or how to refinance your loans and potentially save money, we will try our best to help you. As a thank you for your service, no fees will be charged. Learn more at www.collegeaiddirect.com You can email us with questions. For any Nurses and allied health professionals displaced during these crazy days, we would like to introduce you to Kamana. Kamana may be able to help you find the next or better career. Learn more at www.kamanahealth.com . Kamana: Kamana is an online platform for nurses, allied health professionals, and healthcare staffing agencies to eliminate the inefficient and expensive processes used to fill jobs and find work. Kamana launched in 2019 with a focus on solving problems for the travel and per diem workforce, but the technology they are bringing to the industry is on track to modernize how healthcare credentials are managed and shared across the entire nursing and allied health community. The company was born out of the personal frustrations one of their founders, John Modica, experienced throughout his travel and per diem nursing career. Having spent more than five years working travel contracts across the country, John witnessed first-hand how the inefficient technology being used to attract, onboard, and manage healthcare professionals is resulting in missed opportunities and financial waste for him, his staffing agency, and the hospitals that they work for. For healthcare staffing agencies, Kamana provides a secure and mobile-friendly candidate portal that offers real-time talent collaboration, efficient onboarding and profile management, automated credential management, streamlined communication, rapid candidate submissions, and more. Kamana brings operational efficiency into the day-to-day workflows of a staffing agency and brings a much needed improvement to the candidate experience a healthcare staffing agency is able to offer to the nurses and allied health professionals they seek to employ. For nurses and allied health professionals, Kamana provides a single, secure, profile that can be used to manage credentials, onboarding, and relationships throughout every aspect of their career. A Kamana profile can be used directly in conjunction with, or completely independent of, a staffing agency that is using Kamana’s staffing software. The ability to efficiently use the same profile to manage relationships, onboarding, and documentation with multiple staffing agencies saves time and money on both sides. With Kamana, nursing and allied health professionals can put an end to repetitive and data-insecure applications and onboarding, and focus on the aspects of their career and life that matter most. Learn more at www.kamanahealth.com .
2020, what a year so far? We hope you are all well and safe. So how are you to pay for school safely during the pandemic? No need to go visit any loan officers or leave your house. Wash your hands and check out our tips below. APPLY EARLY! Good News: Due to the economic conditions, rates are at historic lows. Bad News: Due to the economic conditions, some companies have limited funds to lend this year. Navigating the process to pay for college can be confusing. We are here to help. If you have a few minutes, we can show you how to pay off that tuition bill. Watch our free video here: WATCH ME Then visit us here for options: SHOW ME THE MONEY You can apply to multiple lenders to shop for rates. We recommend you do. A few extra minutes could save you money in interest over the life of the loan. Just do it within 30 days so it doesn't affect your credit score. Rates are not going to stay this low. Carefully consider Fixed rates versus Variable rates. You may be able to lock in a great rate now. Most undergraduate private student loans require a cosigner. This varies by lender but 75-90% of undergraduate loans are cosigned. Using a cosigner may get you a better interest rate also. If you visit other websites or lenders, watch out for origination fees and any hidden repayment fees. Or you can email us with questions here: HELP If you need to fill out the FAFSA : https://studentaid.ed.gov/sa/fafsa Remember it is free. DO NOT PAY ANYONE TO FILL OUT THE FORM !!!
Starting today, you can submit your Free Application for Federal Student Aid (FAFSA). Why is this important? Many states offer Grants on a first come, first served basis . Need we say more? Why do I need a FAFSA? The FAFSA is a free online application for financial aid eligibility. It is used by the government and schools to determine your eligibility for financial aid, including grants, work study and federal student loans and some state programs. Many of the state programs have limited funds, so the early bird gets the “funds”. Tips: This is a free application located at https://studentaid.ed.gov/sa/fafsa or on the myStudentAid mobile app. Do NOT pay anyone to fill out the form for you. Free is in the title. You must fill this out annually. Add it to your calendar for October 1st. Let’s get started: Information you will need. • Your driver's license • Your Social Security number • Your parents' Social Security numbers and birthdates • Your family’s latest federal income tax returns. • W-2 forms or other income information • Bank statements • Information on investments • FSA ID Submit your FAFSA and you can check your status online or in the app. Processing time varies but is usually 5-7 days. How is your financial eligibility calculated from your FAFSA? When you fill out your FAFSA, you provide personal demographic information and financial information about yourself and your family This information is used to determine your Expected Family Contribution (EFC). Your EFC is calculated according to a formula established by the Department of Education and the information you provide on your FAFSA. The calculation considers many factors including enrollment status, year in school and the cost of attendance at your school. The results of the FAFSA are provided to you on a Student Aid Report (SAR) from the office of Federal Student Aid. Your SAR is a document that gives you basic information about the FAFSA data you submitted. You should receive your SAR within a few days of filing. After you receive your SAR, you should receive a financial award letter from the school or schools that you added in the FAFSA. Award letters tell you how much aid you’re eligible for at that school and can vary from school to school. You school look at this information and discuss it with your family before making the final decision of what school to attend. Financial aid award letters information: • The total Cost of attendance (COA). This is the current estimate of what you can expect to pay for one year of school. This includes tuition, fees, room and board (TFRB) and potentially even personal expenses. If you have extra expenses, speak to your financial aid office to see if they can be included. • Expected Family Contribution (EFC) is a calculated amount that your school uses to determine financial aid eligibility • Grants are need-based and can be state or federal grants. • Scholarships can be need or merit based and are awarded by a schools, companies, or private organization. • Federal Work Study is a program where you work at your school to earn your financial aid. • Federal Direct Student Loans. You borrow money directly from the federal government. • Private Student Loans. Your eligibility may or may not be listed here. It may show a Private loan or show an amount still due. Do your homework and compare Lenders. You can compare some popular Lenders Here . Financial Aid Myths: • My parents make too much to get aid. • I have a college fund, 529 or money saved for college, so I am not eligible. • My friends didn’t get aid, so I will not. • I can apply anytime. This is true but you may miss out on state grants. List of state deadline . https://studentaid.ed.gov/sa/fafsa/deadlines#2020-21-state-deadlines Apply, you never know what you are eligible for until you do. It’s free and usually required by your school. The Federal Student Aid site, An Office of the U.S. Department of Education, oversees the process and is the definitive source of answers on eligibility. Your financial aid office will be able to answer most of your questions. Here is a link to how aid is determined : https://studentaid.ed.gov/sa/fafsa/next-steps/how-calculated#cost-of-attendance EFC definition according to Federal Student Aid: Your EFC is an index number that college financial aid staff use to determine how much financial aid you would receive if you were to attend their school. The information you report on your FAFSA form is used to calculate your EFC. The EFC is calculated according to a formula established by law. Your family's taxed and untaxed income, assets, and benefits (such as unemployment or Social Security) all could be considered in the formula. Also considered are your family size and the number of family members who will attend college or career school during the year. The EFC Formula guide shows exactly how an EFC is calculated.
New Federal Data on Job and Career outlooks. Free information from the federal government on new job growth. If you are are a high school student looking at college, a college student deciding on a major or just sitting there frustrated at work pondering a new direction. Do your research first!!!! Remember we can help you pay for that degree. Federal Occupational Outlook Handbook