Paying for College: How to Get Help

Going to college is a big deal. It can position you one step closer to your dream job – one that lets you put your interests, skills and knowledge to work. Still, it’s an investment, and you may be concerned about how you’ll finance your goal. 

Instead of wondering how you’ll pay for college, the better question might be how you can get help paying for college. While some students and their families may pay for their education out-of-pocket, most college students look to financial aid for assistance. There are ample federal and private resources available to students across the country.

How Do Students Usually Pay for College?

During the 2019-20 school year, 85% of full-time undergraduate students attending a public college or university were awarded some sort of financial aid, according to the National Center for Education Statistics (NCES). At private, nonprofit universities, the number of students increases to 90%. 

If you want to see what financial aid opportunities exist as you decide when, where and how you want to go to college, you can begin the process with the FAFSA – or the Free Application for Federal Student Aid. As the name indicates, the FAFSA is a free tool the federal government and colleges across the country use to determine what types of aid you qualify for to attend college. You might be eligible to receive a federal grant, loan or work-study, for instance – all of which are very different forms of financial aid you can choose to accept or decline.

The FAFSA is a valuable way to access financial support that is otherwise unavailable. It’s important to reapply every year you’re in college because your financial aid offer package is only valid for one school year.

To apply for the FAFSA, you’ll need your income tax returns, social security or alien registration number and other identifying information. You’ll also need to create a Federal Student Aid (FSA) ID, which should be used every time you apply for federal financial aid.

Because every college is different, the financial aid you’re eligible for will differ from school to school. That makes the FAFSA helpful when deciding which college you’ll attend.

What Are 4 Options for Paying for College?

There are many ways you might pay for college, but four popular routes include:

• Grants and scholarships

• Federal student loans

• Out-of-pocket payments

• Private loans

You may need to regularly evaluate and reevaluate your options, especially if your FAFSA offer letter changes from year to year or your financial situation fluctuates.

It’s important to recognize that there is no right way to pay for college. What works best for you may be different from what works for a friend or classmate. There’s also a good chance you’ll leverage a combination of college payment methods.

Grants and Scholarships

Grants and scholarships are considered “free money,” meaning you don’t have to pay them back. They can be awarded at the federal, state, local, organizational or individual level, and some take an applicant’s financial need into account.

There are different ways to access this type of aid. You may see grants and scholarships listed on your FAFSA offer letter. Some schools award them upon your acceptance. You can also seek opportunities year-round through free online databases.

It’s important to note: You don’t have to be an athlete or honor student to apply for scholarships and grants. Some types of scholarships, for instance, may call for applicants within a specific major. Others may seek to support students who belong to a certain cultural group or a military family. 

Thousands of scholarships catering to a wide range of individuals exist, according to Donna Camire, the director of Student Financial Services for Southern New Hampshire University’s Global Campus. When you’re ready to start applying for scholarships and grants, be sure to carefully read the criteria and deadlines for each.

Federal Student Loans

While grants and scholarships are “free money,” student loans are considered “borrowed money.” This is a type of financial aid you can get to cover costs upfront –– but you’ll have to pay it back down the line, often with interest.

To see if you qualify for federal student loans, which are also known as Stafford Loans, you’ll need to submit the FAFSA application. When you receive your offer letter, you may find you qualify for either a subsidized or unsubsidized loan – or both.

But what’s the difference?

You do not have to pay the interest on subsidized loans while you’re a part-time or full-time student; the U.S. Department of Education takes care of it. These are offered to undergraduate students based on financial need and are “considered the more favorable of the two types,” Camire said.

As for unsubsidized loans, you’ll be responsible for the interest that accumulates on your loan while you’re a student. There are two benefits of unsubsidized loans, though: They are available to both undergraduate and graduate students and are not need-based.

If you’re trying to decide whether you should accept any loan, consider speaking with a finance counselor at your school or the school you hope to attend. “Based on your personal circumstance, your financial aid offer, and other factors, finance counselors will provide you with all the options you need to make this decision,” Camire said. “They are experts in the field of financial aid and will guide you through the process.”

Out-of-pocket Payments

While paying for tuition and other college fees out-of-pocket is not an option for everyone, you and your family members may be able to contribute some. That can help you reduce the amount you need to borrow. 

To determine if out-of-pocket payments are an option for you, consider reviewing your bank accounts and developing a budget.

You could also choose to work part-time or full-time while taking classes. Some schools, such as SNHU, offer online programs without scheduled meeting times. This type of asynchronous program can give you the flexibility to complete your coursework on your time. Some employers also offer tuition discounts or reimbursements you could qualify for, Camire said.

There’s also a chance you’ll see “work-study” listed on your FAFSA offer letter. That is federal funding for part-time jobs within your college community that allows you to build your professional experience while earning money you can put toward college expenses.

Working while you're in school doesn't just help you financially; it also allows you to gain professional experience as you’re learning, putting you ahead of others in terms of workplace skills and connections.

Private Loans

After seeking out other forms of aid, you may crunch the numbers and realize you still need additional financial assistance. In this case, you can consider applying for a private loan with a bank. Private loans are often the last resort because interest rates can vary more and have fewer postponement and repayment options than federal programs. 

“If (you) are (looking) for a private loan, interest is an important factor. Be aware of fixed rates and variable rates beyond the interest rate,” said Crystal Merrifield, a finance counselor at SNHU. “Most schools will have a list of historical lenders to ask for if you don’t know where to start looking.”

Know that you may also have to make payments on your private loan prior to graduation, whereas federal loan payments are deferred until you’re no longer attending college.

How Can I Pay for College if I Don't Have the Resources?

There are many forms of financial assistance out there for college students. Start by applying for the FAFSA – and reapply each year you are in college. Be sure to examine the offer letters you receive as a result of your FAFSA applications and set aside time to search and apply for scholarships and grants regularly.

As you’re determining how you’ll pay for college, don’t hesitate to get in touch with a finance counselor at the school you’re attending or hope to attend. Its financial services office should have your best interests at heart and guide you through your options, making recommendations based on your financial position. 

“Every student situation is different, and their needs are different,” Camire said. “We do not determine for a student whether they should or should not accept all of the aid offered, but rather we provide options to help in their decision-making.”

Finance counselors should be familiar with all types of financial aid and strategies for paying for college, and they can answer your questions, too.

"Financial literacy is extremely important to us, and we are here to provide the options students have to accrue as little debt in the way of student loans as possible,” Camire said.

The bottom line is: You don’t have to figure out how to pay for college on your own. Resources and support are in place at all levels – from the federal government to your school. You can even sign up to get free college counseling through UPchieve!

About the Author

Rebecca LeBoeuf (‘18/’22G) is a writer at Southern New Hampshire University. She’s also a recent college graduate, having completed her BA in Communications in 2018, and her MA in 2022.  Connect with her on LinkedIn. SNHUdoes not endorse or sponsor any commercial product, service, or activity offered on this website.