As high school students decide which college to attend, it’s also important to determine how they’re going to pay their tuition. Most students are faced with the challenge of rising education costs that exceed the limited financial resources they have available. Most of them don’t even make enough to pay their college tuition. However, most don’t understand there are a wide variety of ways to finance their education.
The recent conversations surrounding tuition costs have made college somewhat easier for most students. Thanks to modern laws and trends such as online education, students can afford a higher education from anywhere in the world. For example, technology has largely eliminated the need for expensive textbooks and attending live classes.
While undergraduate and graduate tuition costs can cost tens of thousands of dollars per semester, several programs and financial aid options are available. They can help students receive the education they desire to have. Some of these programs can make higher education a reality rather than a dream. Here are some common ways of financing your higher education, according to expert Adrian Rubin.
Educational Grants
As long as you demonstrate a strong financial need, then you can apply for an educational grant. You can obtain one from the financial aid office of your college, training program, or university. You can also obtain educational grants from other sources, which are dependent on your qualifications. The biggest advantage of educational grants is that you don’t have to pay them back. Keep in mind that the qualifications and requirements are challenging, especially if you make a certain amount of income or have assets.
Merit-Based Scholarships
High-achieving high school students are awarded merit-based scholarships during their junior and senior year. These are awards that come in the form of scholarships that don’t need to be repaid. While it doesn’t pay for their entire college tuition, it can help ease the burden of rising tuition costs. These scholarships are dependent on the student’s grades and scores on scholastic aptitude tests, such as the ACT or the SATs.
Work-Study Programs
Students may choose to seek a work-study program that allows them to earn money they can use towards their college tuition. Work-study programs are offered by educational establishments such as colleges, universities, and vocational schools that offer employment opportunities through select employers. The U.S. Federal Government has its own federal work-study program that offers a 60% wage subsidy to employers of eligible students. This offer is more attractive than what most work-study programs offer and is something else to consider.
Internships
On-the-job training in the form of apprenticeships and internships may also be available for most students. Internships can range from blue collar jobs to white collar positions. These programs take place throughout the school year as a way to encourage students to continue attending their classes. However, other types of internships may run full-time throughout the summer.
While most internships are either non-paying or low-paying, they allow students to gain hands-on experience in their desired field. If successful, it could result in a job offer from the company they volunteered in the program with.
Private Loans
Private loans are obtained from banks, credit unions, and other private financial resources. These loans are typically offered at fixed or variable interest rates. If you have bad credit or no credit, then a co-signer and credit check is necessary in order to be eligible for a private loan, according to Adrian Rubin. Keep in mind that some lenders may not be comfortable with your credit history since they’re not familiar with you. It’s always best to apply for a private loan from your bank before looking into other types of lenders.
Stafford Subsidized & Unsubsidized Loans
These types of loans are granted by the U.S. Federal Government through the Department of Education. You can use this money to pay for your tuition and other educational expenses. Subsidized loans require a financial need and have no interest while you’re in school.
Meanwhile, unsubsidized loans are not determined by financial need and generate interest as soon as you receive the loan. Both loans come with a fixed interest rate, and payments are required as soon as you graduate school.
Direct PLUS Loans
The U.S. Federal Government also offers Direct PLUS Loans for educational expenses. Keep in mind that these loans come with a steep. 7.9% interest rate but have relaxed credit and financial requirements compared with other loans on this list. The loan amount that you receive is dependent on the attendance cost for the college you’re attending. The loan is typically a smaller amount than other educational financing or financial aid that you received that same year.
These are just some of your options for financing your education. To choose the right one for you, visit your school’s financial aid office to see which options are available. Your financial aid representative should provide assistance in finding the right educational financing for you.
