Your college applications are submitted and decisions are coming in. Now it’s time to figure out how to pay for your college education. It’s no secret that college costs are high, but there are ways to reduce your bottom line. Here are some important steps to finding funds for college.
FAFSA First
When applying for financial aid, there’s no shortage of forms to complete. Be sure you put the FAFSA, or Free Application for Federal Student Aid, at the top of the pile. The FAFSA asks for information about your financial situation as well as your parents' or guardians' finances, so you’ll want to have tax and asset information handy. Part of the reason the FAFSA is so important is because in addition to potentially accessing federal aid, many colleges and states also use the form to determine awards from their own aid programs. Typically, the FAFSA becomes available in October; however, this year it was delayed until late December due to an overhaul of the form. That means if you’re applying for financial aid for the 2024–2025 academic year, you should file the form as soon as possible so you don’t miss out on any possible funds. Once you submit your form, keep an eye on your email in case more information is requested. And don’t forget: the FAFSA must be filed each academic year you’re seeking aid.
Save with Scholarships
Federal aid and college-funded awards are just two ways to help pay for college. There also are thousands of scholarships, with various eligibility criteria, offered by outside organizations. There’s no limit on how many scholarships a student can win, so do take the time to research scholarship opportunities as they can help lower the amount of money you may need to borrow. Start early so you have time to review and complete all the requirements and submit your applications by the deadlines. It’s important to note that scholarship timelines can vary significantly, so be sure to carefully read the details and note the critical dates. Your first stop for scholarship opportunities is AISES. Other good resources include the American Indian College Fund, American Indian Services, Native Forward Scholars Fund, the Cobell Scholarship, and your own tribe and local community. Run a few online searches and ask friends and relatives if they know of any scholarships that might be contenders. There’s money out there, but you’ll need to put in the work to get it.
Lean on a Loan
If after securing financial aid and scholarships, you still need some help affording your final tuition bill, you can consider taking out a student loan. There are many types of loans, so be sure read the fine print and understand the type of loan you’re choosing. Before signing for any loan, it’s essential that you understand the terms. Most loans accrue interest, but how it’s accrued depends on the loan type and details. Some require interest to be paid while you’re still in school, while others don’t require any payments until after graduation. Know — and be comfortable with — all interest and repayment details to avoid any surprises later.
College is expensive, but there are ways to make it more affordable. Be certain to complete all financial aid forms, including the FAFSA, and submit them on time. Don’t forget to seek out scholarship opportunities in addition to federal and institutional aid. Throughout the process, don’t be afraid to ask questions of your college’s financial aid office or an advisor — they’re happy to help.
The college financial aid process is complicated. At times it can feel like you're swimming in a sea of unfamiliar jargon. We've pulled some key financial aid terms and urge you to take some time to study them. Understanding the meaning of these terms will help you go through the financial aid process more confidently.
Cost of Attendance: An annual estimate of educational expenses you will incur while attending a particular college or university. The estimate is made up of two types of direct and indirect costs.
Direct Costs: Items that will appear on your university bill, including tuition, fees, and on-campus room and board.
Indirect Costs: Expenses that will not appear on your university bill but are estimated costs associated with attending college. These costs include books and supplies, transportation, personal expenses, and off-campus housing and food.
Scholarships and Grants: Gift aid awarded to the student on the basis of need or merit by the university, state or federal government, or a private source. These awards do not need to be repaid.
Federal Student Loan: Funds that need to be repaid. Students with financial need may be awarded a portion of their federal student loan as subsidized. The federal government pays the interest on the subsidized portion while students are enrolled at least half-time. The federal unsubsidized loan is not based on financial need, the student is responsible for the interest that accumulates while enrolled. Students who plan to borrow federal student loans must complete both Loan Entrance Counseling and a Master Promissory Note at studentaid.gov.
Federal Work-Study: A federal program that provides job opportunities to students who have financial need, allowing them to earn money to help pay education expenses. Eligibility is determined according to the results of the FAFSA and availability of funds. Students are responsible for securing a position in order to earn the funds.
Balance: Once all scholarships, grants, and federal student loans have been awarded, most families will still have a balance due. Students and families have the choice to pay the remaining balance in full, or they explore an additional loan or payment plan.
