How to Pay for College

There are many ways a person can pay for college; college is not truly out of reach for almost anyone. Some of the most common ways a person can pay for college include scholarships, grants, loans, and work study. By using a combination of these methods, college can become a reachable goal to most prospective students.

Scholarships

Scholarships can be found in many places. There are several reputable websites that offer a listing of local and national scholarships. Resources that are commonly overlooked by college students are local organizations and their scholarship programs. Students may also be able to qualify for scholarships that are offered by the schools they are considering attending.

Grants and Loans

Grants and student loans can be applied for through the Free Application for Federal Student Aid. Although students may be overwhelmed by the size of this document it is fairly simple to fill out. The student, and anyone assisting them with the paperwork, will need copies of the student's (and most likely their parent's) federal tax return from the most recent tax year.

By filling out this one document the student can apply for grants (which do not need to be paid back) and several types of student loans (which must be paid back eventually). The types of federal student loans available include Stafford, Perkins, and Plus loans.

Stafford loans require that a student be enrolled at least half-time and are generally part subsidized and part unsubsidized. With subsidized loans the federal government will pay for the student's interest while he or she is in school and in deferment; with unsubsidized loans the interest will accumulate normally.

Perkins loans are based on the students financial need, and the student does not need to be enrolled a minimum amount of hours to qualify. The availability of this type of loan varies because the money is actually borrowed from the student's school.

Plus loans are a credit-based loan available to the parents and guardians of students. They are limited to the total school cost (including tuition, fees, and housing) minus the amounts obtained from all other sources.