Getting Ready to Pay for College

Cost may be one of your biggest worries about going to college. But there are many ways to pay for college, so don't rule anything out until you've explored them all.

Remember, over the course of your life, the price of college is nothing compared to the price in lost income if you do not go to college.

Financial Aid

Your first strategy in getting ready for college costs is to pay as little yourself as possible! That means getting some financial aid. Financial aid includes:

• Grants and scholarships: "free" money you don't have to pay back.
• Work-study earnings: your college lets you work for pay part-time on campus.
• Loans: Student loans have low interest rates but must be paid back after graduation.

A very important fact: The financial aid you get depends on a number of factors: the college you apply to, the special scholarships you may be able to get, and your family's financial situation.

To apply for financial aid, you must fill out a federal form called the FAFSA (Free Application for Federal Student Aid) that the federal government uses to determine your family's financial needs. After you complete the FAFSA, the government will set an amount that your family can be expected to contribute to your college costs. Colleges then use that amount to tailor financial aid to your situation.

Every school has a different amount of financial aid available and will distribute its aid in different ways. So a more expensive college may actually cost you or your family less than one that has a lower tuition. This means you should apply to any college that really interests you even if it seems pricey.

Grants

Grants (money for college you do not pay back) are given by the federal and state governments, as well as by colleges. The largest grant programs are sponsored by the federal government and are based on need.

• Federal Pell Grants (maximum $4,050)
• Federal Supplemental Educational Opportunity Grants

You don't have to complete any application for these except for filling out the FAFSA. Because the funds for supplemental grants are limited, students who apply early to colleges have a better chance of getting them. Find out more about these grants at the federal government's student aid website studentaid.ed.gov.