News Karnataka
Friday, March 29 2024
Cricket
Campus

Tips for Paying for School

Photo Credit :


It can be hard to pay for college, but luckily, you have many options open to you. From grants to private student loans, there are options to ease your financial burden and make your college years less stressful.

Consider Taking Out Loans
You have the option of both federal and private student loans. Each one has advantages but remembers that you’ll have to pay back what you borrowed with interest. Start researching potential lenders now. You may only want to try for student loan repayments that are no more than 10 percent of your potential after-tax monthly income. Don’t know what your private student loan repayments will be? Consider using a student loan repayment calculator to estimate the monthly payments.

Use Grants
If you don’t fill out the Federal Application for Federal Student Aid (FAFSA), you might leave federal Pell Grant money behind. Don’t make this mistake. Even if you do not know if you are eligible for aid, fill out the FAFSA each year and see what your financial aid award letter says you are eligible for. There are other grants offered by the federal government as well, and you do not need to pay them back. Check with your state to see if they offer a grant program. The Education Department website might have resources to help you find agencies administering grants for college. Try to apply for each one you might be eligible for.

Apply for Scholarships Early
Applying for scholarships early is often beneficial since there are scholarship programs that might limit the number of applications allowed. If you do not apply on time, your application may be declined. It can take as long as a month for the application to be processed. Plus, you’ll likely also have more options when you start the scholarship search early.

Use Your Savings
You’ll likely have to dip into your savings and income to pay for room and board, tuition, and any other expenses. If your family or you saved through a 529 plan, which is a tax-advantaged, state-sponsored account, contact the administration of your plan to access your college funds. Now is the time to start saving for school, even if you won’t be attending for a few more years. That will maximize any compound interest. For example, let’s say your parents invested $200 each month when you were born. If there is a 6 percent rate of return, there will be $76,500 by the time you are 18. On the other hand, if your parents waited until you were 10, there would be only $24,500 in that account.

Even if you are still in high school, consider getting a part-time job, such as babysitting, to start growing your savings account. You’ll be glad of the funds when the time comes to pay for books, rent, food, car repairs, or other living expenses during college. Consider asking relatives to contribute to your savings. Instead of physical items for birthdays, holidays, or major events, consider asking close friends and family to contribute to your college savings account.

Share this:
MANY DROPS MAKE AN OCEAN
Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

To get the latest news on WhatsApp