Student loans don't have to be a necessary part of your college experience. Here are some of our favorite ways to start your future debt-free.
Whether you’re an incoming freshman or preparing for your senior year of college, odds are you’re planning to take out a loan to cover at least a portion of your education. After all, not everyone can afford to spend $35,087 on tuition every year, not to mention food, housing, books and countless other related expenses. Once your degree lands you a job, yes, you can pay off your loan in a matter of years, but it’s rarely quite that simple.
The average student borrower takes 20 years to pay off their debt, and some professionals take more than 45 years to repay theirs in full. Meanwhile, the average medical graduate doesn’t even receive a high enough salary to make student loan payments. That’s why it’s best to think twice before you borrow. We put together the following tips to show you how to get more financial aid for college without racking up an insurmountable amount of debt.
1. File Early
Learning how to maximize financial aid isn’t as difficult as it sounds. In fact, you can receive more funds by simply filling out the Free Application for Federal Student Aid sooner rather than later.
Filing the FAFSA as early in the year as possible is crucial because many schools award federal loans and grants on a first-come-first-serve basis. Even if your dream school has a later deadline, you’ll have a better chance of scoring more money if you file on Oct. 1 or shortly after.
2. Appeal Your FAFSA Award
If your top school didn’t give you enough aid, you could appeal the FAFSA award. However, you’re more likely to be successful if you made an error on your application or your family’s financial situation has changed since you filed.
For instance, if you or your parents recently suffered a job loss, divorce or medical emergency, the school may be willing to review your appeal and offer more aid. Contact the university’s admissions office and submit any additional documentation they might need.
3. Cut Back on Your Incoming Cash Flow
While getting a job may help fill your funding gap, reducing your taxable income may be a wiser move. That’s because the FAFSA uses your income and tax information from the previous calendar year to determine eligibility. 80% of US students are working at least part-time while going to college — and not only can this be exhausting, it might negatively impact your financial aid eligibility, depending on how much you’re earning. If you’re working often and generating a decent part-time wage, you might end up qualifying for less funding. Yes, this stinks. But if you’re on the bubble, you might want to minimize your income by working less now. And if your parents are helping you pay for college, let them know that anything they can do to minimize income would be a good plan while you’re in school — they can opt to defer cash bonuses, and hold off on early 401(k) or IRA withdrawals.
5. Apply for Scholarships
Regardless of who you are, how much money you make or how long you’ve been in college, there’s likely a scholarship out there for you. You simply have to know where to look and, luckily, there are plenty of available resources.
Start by contacting your university’s financial aid office or speak to your high school counselor about how to find more financial aid for college. Often, they’ll recommend grants.gov or another similar online database. Local businesses foundations and religious, ethnicity-based, community and civic groups may also fund promising students. It never hurts to ask, and the worst they can say is no, so find and apply for as many as possible. Scholarships are free to apply to, and yes, they take time, but there’s no better feeling than opening up your inbox and seeing that your hard work paid off, and your application was approved. You got this!
Being Proactive Is Key
Filing early, appealing your FAFSA award, and applying for scholarships are all going to take time and energy. Students who are serious about securing additional funding will find themselves logged into countless application portals, and reaching out to universities, churches, businesses and other organizations. We know it can be a pain keeping it all organized! However, your financial future and your future career are so worth the investment of time. Imagine how wonderful and liberating it would be to be able to start your working life debt-free, or to be given a scholarship for something special you’ve accomplished. You deserve a great education, so be bold, and never be afraid to ask for help.
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