Many students and families find that even after financial aid is awarded, they still have an outstanding balance with their college.  It is important to contact the financial aid office to discuss financing options and possible ways to receive more financial aid in the future.  Also, be sure to let them know of any changes to your financial circumstances.  Here are five common ways that students and families pay the remaining balance on their college bill.

It is important that students make the most of their free time during the summer by working and saving for upcoming college expenses.  In fact, some students are able to earn and save several thousand dollars during the summer.  At a minimum, students should earn at least enough money to buy their textbooks for the year.  These costs vary so check estimates with your institution, but saving at least $2,000 for books and supplies is a great start.  Saving money over the summer also allows students to purchase books early and often students can save big by shopping online.  Don't forget, every dollar saved is one less dollar that you might have to borrow!

These monthly payment plans allow students and families to spread the cost of tuition, fees, and room and board over the course of a semester or year.  While there is often a nominal enrollment fee, interest is not typically charged.  Payment plans can also be used in combination with other financing options.  Contact your school for more information.

The Federal PLUS Loan program is a credit-based loan available to parents of dependent students and to graduate and professional students. PLUS Loans are funded by the federal government, have fixed interest rates, and offer a variety of flexible repayment options.  Contact your institution for more information regarding the application process.

 

Using a home equity loan to help pay college costs are another option that some families utilize.  This option is appealing to some families because of low interest rates and the fact that the interest is often tax deductible. While there are pros and cons to consider when selecting any financing option, this is especially true with home equity loans.  Because of the many considerations, we strongly recommend that you consult with a financial expert, or meet with your financial institution and/or tax accountant before pursuing this option.

These private credit-based loans are offered through banks and credit unions. Typically, the student is the borrower and a credit-worthy co-signer is required.  Interest rates are set by the lender, and are typically variable.  Private loans lack many of the repayment benefits of federal student loans.  Therefore, you should carefully research the terms and conditions and only consider these loans as a last resort.

education@famemaine.com