Let’s Talk College Funding
When pursuing a college education, one of the primary concerns is how to pay what are continually rising costs to the tune of an approximate 8% increase per year. Tuition, room and board, meal plans, travel to and from campus, parking fees, and books can all give a parent and prospective student sticker shock. Some are so repelled by the cost of a college education that they choose to avoid it altogether, but I have some advice that can make pursuing a degree much more palatable.
Here are a few financial pointers:
1) Fill out a Free Application for Federal Student Aid (FAFSA) at <https://studentaid.gov/h/apply-for-aid/fafsa>. This is the first step to identify whether a student qualifies for federal assistance to attend college. After completion, you will be notified regarding how much funding will be awarded. From this point, prospective students can then qualify for institutional aid, which is funding directly from their intended college.
2) There is a scholarship or two (or more) for everyone! I’m not joking. There are academic scholarships, athletic scholarships, scholarships for community activism, scholarships for left-handed people. scholarships for musicians and artists, scholarships for short students and tall students…I can go on for a very long time with this list, so I’ll stop here. There is truly a scholarship out there for everyone and just about everything. The key is to be proactive and know where to look.
3) Have you heard of the Federal Work Study (FWS) program? Not many people have, and it’s a valuable resource that allows students to work for the college they are attending, be paid, and use that money to help offset the cost of tution, books, food, etc.
4) You could attend a community college for the first two years. According to the Community College Research Center (CCRC), 41% of all college students attend a community college. This is a way to offset the growing cost of pursuing a degree. Community colleges provide a quality education at the fraction of the cost of 4-year institutions. Note: Check with your advisor to understand the transfer agreements between your community college and the college you wish to attend next.
5) This next one, people try to avoid at all costs, and I understand: loans…yes, loans. No one wants to incur debt, but it may be necessary to fill in the gaps that the federal government, scholarships, and work study may not. Loans offered through the federal government such as: Direct Subsidized and Unsubsidized, PLUS Loans, and Direct Consolidation Loans offer a better interest rate than a loan from the local bank. My advice is that if a loan is necessary, take it! Never be afraid to invest in yourself. You are the most solid investment available.
6) Do you know about endowments? Not many people do. Endowments are assets and investments gained and used by a college that are acquired by alumni donation. Essentially, when students graduate from a college and donate to that college, the money is then invested and used to grow the stability of the college. The college uses some of that money to support incoming students. The larger the endowment, the more financial assitance can be given. Famously, Harvard University has a $53 billion dollar endowment. Yes, 53 with a “B”. Elite colleges and universities with highly successful alumni tend to have larger endowments and are not as dependent on federal funding to support their students. I know this first-hand. I am a benefactor of an elite school with a large endowment. The cost of my undergraduate education would have been insurmountable without the college’s ability to pull from such funds to assist me. Knowledge of endowments is so very important because many believe Harvard, Yale, Smith, Wellesley, and others of this category are out of reach due to the price tag, but they have sizeable endowments to support your academic dreams.
I hope this was helpful! Post below and ask me questions.
