Finance Authority of Maine
FAME's 5 on the 5th
May 2013

Five Ways to Pay the Bill

 

You've received your college acceptance letter and financial aid package - now what?
  
1.  Scholarships

It's not too late! Scholarship search resources can be found on the FAME Web Site, through FastWEB, and the College Board. Also research private scholarships through civic organizations, your parents' employers, your town office, and the military.


2.  Contact the Financial Aid Office at Your New School
 
Discuss financing options and report any special circumstances or changes (such as unemployment). Ask about ways to receive more aid in the future. Find out about the impact of outside scholarship awards.

 
3.  Don't Underestimate Summer Earnings
 
MANY students are able to earn several thousand dollars during the summer before they head to college. You should be working and SAVING for college during any free time that you have. At a minimum, you should be prepared to buy books for the year (possibly $1,500).

 
4.  Reduce the Costs YOU Can Control
  • Living expenses: Can you live at home and commute to school? Doing this could reduce your room & board charges to zero. Will living off campus with a roommate save you money? If you are living on campus, forgo the single room and get a roommate! Choosing to live with a roommate could save you thousands every year. 
  • Dining expenses: If you plan to eat on-campus, choose a meal plan that works for you. Don't pay for more than you will eat. More importantly, if you have a meal plan, use it. Don't pay for food elsewhere!
  • Save on books: Buy your books early and buy them used. Consider buying your books online - you could save hundreds!   

5.  Explore Loan Options


Have you filed your FAFSA? Have you taken full advantage of federal funds? Use any available grants first and loans second. Have you borrowed your full Stafford Loan eligibility - Subsidized and Unsubsidized? After you have you have maximized Stafford loans, consider the following loan options: 
  • The Federal Parent PLUS Loan is a parent loan program for parents of dependent undergraduate 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 is another option that some families utilize. This option may be appealing to some families because of current low interest rates and the fact that the interest may be 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.
  • Alternative Education Loans are offered through private lenders, usually in the student's name and require a co-signer. This loan is credit based and lender approval is based on credit history and debt to income ratio. Interest rates vary and may be higher than federal loans. This is one of the most expensive types of financing and should be considered as a last resort only.

     
Finance Authority of Maine
www.famemaine.com
 
Tel:      (207) 623-3263
           (800) 228-3734
Fax:     (207) 623-0095
TTY:    (207) 626-2717 
 

The Finance Authority of Maine (FAME) does not discriminate in the administration of any of its programs or in its employment practices on the basis of race, color, national origin, age, gender, religion, physical or mental disability, political affiliation, marital status or sexual orientation. FAME is an equal opportunity employer, provider and lender.