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Five Ways to Pay the Bill
You've received your college acceptance letter and financial aid package - now what?
1. Scholarships
It's never too late to look for scholarships. Scholarships can be utilized throughout your academic career, even into grad school.
Not sure where to start? Scholarship search resources can be found on FAME's website, FastWEB and the College Board. Consider looking to your town office, parents' employers and civic organizations for scholarships as well.
2. Contact the Financial Aid Office
Before you even arrive on campus, contact the Financial Aid Office at your school to discuss financing options. Be sure to report any special circumstances or changes to your financial situation, including unemployment. Ask if there are other scholarships you can apply for or other ways to receive increased aid in the future.
3. Don't underestimate summer earnings
Many students are able to earn a few thousand dollars during the summer before they head to college. Plan to work and save as much as you can. It's a good idea to have at least $1,000 by the end of the summer for books and other school supplies and fees. In addition to earning money for college, you'll also be gaining valuable work experience.
4. Reduce the costs you can control
Living expenses: Consider living at home and commuting to school, if that works for your situation. Living at home, even just for your first year, could save you thousands of dollars. If it is necessary or important for you to live on campus, skip the single room. If living off campus, make sure you have a roommate (or two) so expenses can be shared.
Dining expenses: If you plan to eat on campus, choose a meal plan that works for you. Don't pay for more than you'll eat. More importantly, if you have a meal plan, use it! Dining out when you have a meal plan is like paying for that meal twice. If you do decide to dine out, grab your student ID. Many restaurants offer student discounts.
Books: Try to buy your books early, online and used. Consider renting or share with someone taking the same class. Sell the books you don't want as soon as you can to get the most money back.
Entertainment: Take advantage of free or inexpensive on campus entertainment like game nights, movies and concerts. Also see what the communities surrounding your school have to offer. Many movie theaters, museums, libraries and theme parks offer discounts to students with a student ID.
5. Explore other financing options
File your FAFSA and take full advantage of federal and state grant funds before considering other options. If you need to borrow, maximize your full federal Direct Stafford Loan eligibility - Subsidized and Unsubsidized - before considering other loan options. If you still need money, consider the following options:
Tuition Payment Plans: These plans allow payments to be spread over the course of a semester or academic year and are offered by most colleges. There is typically a small enrollment fee ($50 - $100), but no interest is charged. Plans can be used in combination with other financing options and tuition payment plan companies often assist with financing recommendations. Contact your school for additional information.
Federal Parent PLUS Loan: This loan is for parents of dependent undergraduate students. PLUS Loans are funded by the federal government and have fixed interest rates. To learn more, click here. Contact your institution for information on the application process.
Alternative Education Loans: These loans are credit based and offered through private lenders. The loans are typically in the student's name and require a co-signer. 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 so consider this option as a last resort.
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