Paying for College

Types of Aid:

Meaning: Free money awarded to students, usually based on merit, need, or specific qualifications. Scholarships don’t need to be repaid.

Merit-Based - awarded for academic achievement, leadership, talents (music, sports, etc.)

How to get: Apply through colleges, organizations, or online platforms

Need-Based – given to students who demonstrate financial need.

How to get: Often determined by FAFSA or CSS Profile.

Learn More:

https://studentaid.gov/understand-aid/types/scholarships

https://bigfuture.collegeboard.org/pay-for-college

Specialized Scholarships – tied to identity, community service, religious affiliation, or career interests.

How to get: Apply through local nonprofits, professional organizations, cultural groups, or companies.

Meaning: A federal program that allows students to earn money through part-time campus jobs to help cover expenses.

Indicate interest on FAFSA.
Schools determine eligibility based on need.
Students apply for available on-campus or affiliated jobs once accepted.

Pros: Flexible hours, work experience, directly offsets expenses.

Cons: Limited availability, not all schools offer it, earnings may not cover all costs.

Meaning: Free money from the government, state, or school, usually based on financial need. Like scholarships, grants don’t need to be repaid.

Federal Pell Grant – for students with high financial need.

How to get: File the FAFSA; award amount depends on income and enrollment status.

Federal Supplemental Educational Opportunity Grant (FSEOG) – additional grant for students with the greatest need.

How to get: Apply early with FAFSA; limited funds are given through schools.

State Grants – some states offer aid for residents attending in-state schools.

How to get: Complete FAFSA and sometimes a state-specific application.

Institutional Grants – money from the college itself to support financial need.

How to get: Apply for financial aid through the college (FAFSA/CSS Profile).

Learn More:

https://www.commonapp.org/plan/paying-for-college

Meaning: Borrowed money that must be repaid with interest. Loans can come from the federal government or private lenders.

Federal Student Loans

Subsidized Loans – for students with financial need; the government pays the interest while in school.

Unsubsidized Loans – available to all students; interest starts accumulating immediately.

How to get: File FAFSA, accept loans through your college’s financial aid award.

Parent PLUS Loans – federal loans parents can take out to cover their child’s education costs.

How to get: Parents apply through FAFSA; credit check required.

Private Loans – from banks, credit unions, or online lenders.

How to get: Apply directly with lender; requires credit check and often a cosigner.

Caution: Interest rates are usually higher and repayment terms less flexible than federal loans.

How to Apply for Financial Aid: Step-by-Step

Step 1: Gather Your Documents

Social Security number, tax returns, W-2s, bank statements, and records of untaxed income.

Step 2: Fill Out FAFSA

Create an FSA ID at studentaid.gov. Enter personal, family, and financial info. List colleges and submit.

Step 3: Complete CSS Profile (if required)

Check if your colleges require it. Enter detailed family finances and submit by deadlines.

Step 4: Track Deadlines

Federal, state, and college deadlines. Use a calendar or spreadsheet to stay organized.

Step 5: Submit Extra Forms (if requested)

Verification worksheets or tax clarifications.

Step 6: Review Financial Aid Offers

Compare scholarships, grants, loans, and work-study. Check net cost and contact aid offices if needed.

Step 7: Accept & Manage Aid

Accept aid via the school portal. Borrow loans carefully and track deadlines.

Estimating College Costs:

Cost of Attendance (COA)

The Cost of Attendance is the total estimated cost to attend a college for one year. It includes:

Tuition & Fees: The base cost of classes and mandatory school fees.
Housing: On-campus dorms or off-campus rent.
Meals: Meal plans or grocery expenses.
Books & Supplies: Textbooks, lab materials, and other course essentials.
Transportation: Travel to and from school, parking, and public transit.
Personal Expenses: Clothing, entertainment, health, and other daily costs.

Tip: Colleges provide a COA on their financial aid pages—use it as your starting point.

Net Price vs. Sticker Price Sticker Price:

The “listed” cost of college before any financial aid. Net Price: The actual amount you pay after grants, scholarships, and other aid.

Example:

Sticker Price: $50,000

Grants/Scholarships: $20,000

Net Price: $30,000

Even expensive colleges can be affordable once financial aid is applied, so don’t rule them out based on sticker price alone.

Net Price Calculators

Most colleges have a Net Price Calculator on their website. These tools estimate your personalized cost based on:

Family income
Assets
Household size
Expected aid eligibility

How to use it:

Go to the college’s financial aid page.
Find and click on “Net Price Calculator.”
Enter your financial information.
Review your estimated cost to attend.

Using these calculators helps you realistically plan for tuition and living expenses before applying.

Resources:

FAFSA: https://studentaid.gov/?utm_=

CSS Profile: https://cssprofile.collegeboard.org?utm_

Calculator: https://bigfuture.collegeboard.org/pay-for-college/get-started/net-price-calculator

Calculator: https://www.tuitiontracker.org/