There is no doubt that cost of tuition plays a factor in a prospective student’s decision to continue their education. However, there are ways to reduce the cost of college, from choosing an in-state college to applying for scholarships. The truth is, where there’s a will, there’s a way!
The economy has certainly changed, and it is important for students to consider a variety of higher education options. One of those options is to choose a school that does not charge out-of-state tuition or to attend college within the state you live in. Colleges that require students to pay out-of-state tuition may charge a hefty amount on top of the tuition. Choosing to attend a local college financially benefits the student in more ways than one by allowing the student to continue to live at home. Not only does it eliminate additional housing costs, it also eliminates pricey food plans and additional expenses that go along with daily housekeeping. Funds that would have been used to cover housing can now be redirected to the actual cost of tuition, fees and books. Financial aid can break out the housing cost for you so you can evaluate the savings.
Don’t forget to ask the college’s Financial Aid Department for help. Completion of the Free Application for Federal Student Aid (FAFSA) is sent to the colleges or universities you select. A student aid report (SAR) is generated, and it allows the Financial Aid Department to determine what you are eligible to receive in aid. Families expect most of the cost of college to be covered; however some students are left with an unfilled financial need. Your Financial Aid Department will review grant eligibility first. Grants are funds that do not have to be repaid. Next, they will look at loan eligibility. Many students do not realize that student loans are considered to be Financial Aid. Why? These loans are non-credit based. You cannot be turned down for a student loan unless you are not a U.S. citizen, you have already used your maximum amount of loan eligibility, or you are currently in “default” on a prior student loan. All schools have Financial Aid Departments. Do not hesitate to talk to them about alternative funding for any financial shortage.
Alternative funding comes in many forms, including scholarships. The internet contains information on millions of scholarships. “FastWeb is the largest and most used scholarship database”. You can register with them at www.fastweb.com. Be persistent when searching for scholarships. Businesses and foundations budget for scholarship awards annually, not only for tax breaks, but also for goodwill in the community. In an effort to meet their financial needs, some college students and their families fall prey to scholarship scams. For more information on scholarship scams, visit the Federal Trade Commission’s “Scholarship Scams” page at http://www.ftc.gov/scholarshipscams.
Other options for funding your education can include credit union loans, Home Equity line loans and even 401K withdrawals. Were you aware that education falls under the hardship provision in your 401k plan? You may qualify for early withdrawal without penalty, so be sure to check this out!
Overall, reducing the cost of college is an option available to anyone seeking a higher education. Does it come with some sacrifice? Probably, but a small sacrifice now will only benefit you in the long run. Choose a college that offers you the most affordable option for your particular situation. Remember to look at the length of program as well as the cost. Shorter programs may cost less in the long run. You may pay more per year but less overall, not to mention the fact that you will be eligible to enter the workforce in a shorter period of time.
Most of all, do not be afraid to ask the Financial Aid Department to “Show Me the Money!”
Respectfully submitted,
Cathy Reed
Director of Tuition Planning
Beckfield College