I think we’d all agree that college is a blast. Unfortunately, there are some parts of college that just aren’t too much fun — like paying for it. If you are one of the lucky ones and have rich parents than good for you. But, the majority of us will likely be stuck paying off student loans for years. If you are in this majority, as lame as it sounds, proper research and planning is essential to reducing your student loans which may be a burden on you for years.
Search For a Scholarship
Your first step to reduce tuition cost should be to search for a scholarship. Begin your search local (high school, local organizations/employers) where the competition is less fierce and then broaden your search to the national level. Nowadays, there are a lot of scholarship search tools online such as Fastweb, Sallie Mae & College Board’s Scholarship Search. You also may want to take a look at Education Grant as a source for grants & scholarships. And, of course take advantage of the scholarships that most colleges offer students.
Apply For Federal Student Aid
After exhausting all possible options in getting a full scholarship, the next step is to apply for student financial aid. You will need to complete the FAFSA form which is a prerequisite for obtaining federal student aid, including the Pell Grant and the Perkins/Stafford loans.
Complete College’s Own Financial Aid Application
Each college will likely have its own financial aid application that you will need to complete. Please be sure to discuss the details of the application with the office of admissions (financial aid dept). Also, be sure to checkout BrainTrack’s financial aid articles among their extensive directory of the world’s universities & colleges.
Receiving Financial Aid
After you are admitted by a college, they will provide you with a “financial aid award letter” which specifies the types and amounts of financial aid for which you qualify, including student loans.
Contacting the Lender
You will then need to contact a lender to obtain the right loan for you. A great site to review your options is FinAid. Also, be sure to consult with a financial professional when making the decision.
What About Tax Deductions & Credits?
We recently published an article highlighting the tax deductions and credits for tuition and books. Be sure to give it a full read as there are some tips in there that you will not want to miss.
Withdrawing From a 529 Savings Plan
Remember, if you have a 529 savings plan, you can use that money (tax-free) to purchase computers and other technology related goods for your college education.
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