Navigating financial aid offers and exploring other payment options can be overwhelming for high school seniors, but understanding the basics can make the process go smoother. Here’s a breakdown of how college financial aid works, along with some alternative ways to cover college costs.

What is Financial Aid?

Financial aid is money offered to help cover college costs and comes in several forms. Grants and scholarships are types of “free money” that are not repaid.  Work-study jobs are usually on campus and help with personal expenses. Student loans must be repaid with interest after you graduate or drop below half-time. The financial aid offer you receive from a college is based on your family’s financial situation, which is evaluated using information from the Free Application for Federal Student Aid (FAFSA).

It’s important to note that financial aid offers aren’t one-size-fits-all. Each college will create a personalized aid package that reflects your financial circumstances.

How to Review Your Financial Aid Offer

When you receive your financial aid offer(s), it’s important to review them closely. Here are a few tips to help you understand the offer:

Total cost of attendance (COA): The COA includes tuition and fees, housing and food, books and supplies, and personal expenses. Compare the COA with your financial aid offer to see how much you’ll still need to cover. Keep in mind that “personal expenses” are an estimated amount students will spend throughout the school year on extras such as dining off campus, toiletries, fuel for your vehicle, etc. Personal expenses are not paid to the college, so this may be an expense that students cover out of pocket as they incur them.

Grants and scholarships: These types of financial aid are ideal because they are free to the student and don’t need to be repaid. Take note of how much of your aid package comes from these sources, and be sure to accept them!

Work Study: The money students earn from a work-study job is paid bi-weekly via a regular paycheck. Typically, students will use work-study funds to pay for day-to-day expenses or save them and use them toward the next semester’s classes.

Loans: If your offer includes loans, determine if you even need to borrow, and if so, only borrow what you will need. Understanding how much you’re borrowing, the interest rates associated with the loans, and how you’ll pay them back after graduation will help you in the long run.

Other Payment Options

While financial aid can help, it often doesn’t cover the full cost of college. Below are just a handful of other ways to help pay for college expenses:

• 529 College Savings Plans: If you’ve been saving in a 529 plan, you can use those funds to pay for tuition, books, housing, and food.
• Payment Plans: Many colleges offer payment plans that allow you to break your tuition payments into smaller, manageable chunks over the semester or year.
• Outside Scholarships: Beyond what colleges offer, thousands of scholarship opportunities are available. Check out our Scholarships Tips for valuable scholarship resources. Finding and applying for scholarships require some effort, but it’s worth your time if you’re awarded free money for school.
• Part-time Work: Many students take on part-time jobs to cover living expenses. Whether working at a local coffee shop or tutoring, a part-time job can provide extra income while helping you build work experience.
• Alternative Loans: These loans are not funded by the federal government. Talk to the college’s financial aid office to determine if an alternative loan might be an option to help fund your education.

It’s Okay to Ask for Help

If you’re feeling overwhelmed, remember—you don’t have to do it alone! Colleges have specialists who can answer questions about your financial aid offer and provide guidance on other payment options. You can also contact EducationQuest for free assistance! We’re always happy to help!

By Jacquie Butler