When paying for college, the best money is the kind you don’t have to pay back — either right away or at all. As you familiarize yourself with the different kinds of financial aid, here’s how to prioritize your options:
Federal Aid:
If you need financial aid, start by filling out the Free Application for Federal Student Aid (FAFSA). Federal aid includes grants, which don’t have to be repaid, and loans, which do need to be paid back but often come with lower interest rates for students.
Scholarships and Fellowships:
These are incredible resources because they’re essentially offering free money (the grants mentioned above also fall in this category). Scholarships can be merit based, but not always, while fellowships are often need based or tied to specific fields of study.
Family Savings:
If your family has set aside money for your education, that can be a big help. Some families also set up special investments specifically designed to save for and fund education, called a 529 plan.
Work Study:
This is exactly what it sounds like — you’ll obtain a job through the school on or near campus to help offset some costs without taking out additional loans.
Employer Assistance:
Some companies, including the Military, offer tuition assistance/reimbursement, especially if you’re working while in school.