There are many forms of financial aid to help a student tackle the cost of getting education in college. The financial aid system might be confusing so you should not feel bad about being unclear about the way it works. There are grants and scholarships, and loans. Some of them are based on academic merit while others are based on income.
Check out these 7 ways to assist you in paying for college:
The federal government, states, and colleges give out grants that should not be repaid. The vast majority of them are awarded depending on your financial need. They are determined according to income. When you receive the grant, it must be listed on the financial aid award letter that is sent by the school. The colleges try filling in the gap for a grant.
Ask the college for more money
It is recommended for a student to write a formal appeal letter. Then a student has to make a phone call. You should reemphasize why you are a good fit for a college and if you received more aid from other institutions. You will have to explain your financial situation. You might mention the way your family’s financial circumstances changed for the past year.
Consider having a work-study job
You can take a part-time job. In order to qualify, you should submit the FAFSA (Free Application for Federal Student Aid). At part-time jobs, you will be paid directly, at least, once a month. The amount you earn must be included in the financial aid award letter. Also, you may try other jobs like dog-walking, tutoring, and baby sitting.
Apply for private scholarships
There are many private scholarships from community groups, nonprofits, and companies. Use a free online service or ask your counselor to help you get this scholarship and understand your aid award.
Take out loans
Loans must be your last resort, but it is impossible to avoid them if savings, grants, and scholarships do not cover the entire bill. The common family utilizes loans for covering 20% of the college cost. You might borrow some money from the federal government since federal loans suggest more borrower protections and lower interest rates. There is one more federal student loan – a PLUS loan. It lets parents borrow to assist their children in paying for college.
Claim a $2,500 tax credit
According to the American Opportunity Tax Credit, you might eliminate your taxes when you pay for a room, books, fees, tuition, and board up to $2,500 per year. However, parents might claim such credit if their income is less than $90,000.
Enroll in community college and live off-campus
If you live at home or commute to school, it might save a lot of money. If you have trouble with your finances, you might consider enrolling in the community college. The fees and tuition at the average community college are $3,520.