Plan for the Cost of College

As we all know, trade schools, community colleges, and four-year institutions can be costly. Frandsen Bank & Trust values educational journeys, so we have outlined a few ways for you to pay tuition and fees for post-secondary education.

Start with the FAFSA

FAFSA stands for Free Application for Student Aid. The application is available to prospective college students seeking additional assistance. This helps applicants understand if they can qualify for Pell Grants, federal loans, and work-study financial aid.

Pell Grants

The Pell Grant is the largest federal grant program offered to undergraduates and is designed to assist students from low-income households. A Federal Pell Grant, unlike a loan, does not have to be repaid, except under certain circumstances.”

Federal Loans

The U.S. government also offers loans with favorable terms for students, such as fixed interest rates, flexible repayment options, and some protections. Many require repayment with interest after graduation or leaving school.

• Subsidized Loans Subsidized loans are determined by the school’s cost of attendance and the information disclosed in your FAFSA application. This loan is made eligible for undergraduates who display financial need. The government pays the interest on subsidized loans while the borrower attends school.

• Unsubsidized Loans Unsubsidized loans do not consider financial need as a requirement when determining eligibility for undergraduate and graduate students. Interest on unsubsidized loans accrues while the student is attending school and is repaid by the borrower.

• Direct Plus Loan Direct Plus loans, also known as Parent Plus, are federal loans for which the parents of dependent undergraduates can qualify for supplementary assistance.

Work Study Aid

The Federal Work-Study Program is supplemental assistance for post-secondary education costs. Work-study funds are dispersed to the student through employment at an on-campus facility or pre-approved off-campus business.

For example, you may be awarded 4,500 dollars in available work-study. You will not be credited the entire $4,500 when the award is accepted. Students are required to work an approved part-time job, and depending on the local hourly wage, they will work until the available funds are exhausted.

Seek Scholarships

Scholarships can offer an advantage for those applying on academic merit, athletic abilities, and identity-based scholarships. Scholarship can help fund tuition costs, housing, food, and textbooks. It is recommended to start applying for scholarships when completing your FAFSA. Your school’s counselor should have additional guidance for finding and applying for scholarships available to you based on your unique background and goals.

Find Your Academic Fit

When selecting an institution, consider your financial stability post-graduation. After all financial aid is applied, would your future career be enough to cover your debt post-graduation? Choose an affordable institution that falls within the confines of your current financial situation. Some students save on academic expenses by enrolling at a community college or an accredited trade school to get started. Your school counselor can help determine which options will work for you so that you can graduate in a strong financial position.