Paying for College

July 12, 2023

by Christian Phillips

Do you plan on attending post-secondary education? 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.

Complete FAFSA:
FAFSA stands for Free Application for Student Aid. The application is available to prospective college students seeking additional assistance. Applicants can qualify for Pell Grants, Federal Loans, and Work-Study.

[Definition]
What are Pell Grants? According to the U.S. Department of Education, “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.”

[Definitions]
What are federal loans?

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 that 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 a requirement when determining eligibility for undergraduate and graduate students. The interest on unsubsidized loans accrues while the student attends school.
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.

[Definition]
What is work-study? The Federal Work-Study Program is supplemental assistance for post-secondary education costs. Work-study funds are dispersed to the student when employed at an on-campus facility or preapproved off-campus business. How does it work? Let’s assume you were awarded 4,500 dollars in available work-study. The student 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, the student will work until the available funds are used.

Selecting an Institution:
When selecting an institution, consider your financial stability post-graduation. Ask yourself, “Will I receive enough assistance all four years to limit student debt?” The last thing you want is to be bogged down by student loan repayment programs. Choose an affordable institution that falls within the confines of your current financial situation. Consider enrolling at a community college or an accredited trade school; those tend to be less expensive. Talk with your school counselor to determine which options will work for you.

Scholarships:
Scholarships can offer an advantage for those applying on academic merit, athletic abilities, and identity-based scholarships. This resource can help fund student tuition costs, housing, food, and textbooks. It is recommended to start applying for scholarships when completing your FAFSA.

[Final Thoughts]
Paying for college comes with challenges, but you should never give up. Contact your school’s counselor for additional guidance if you are still searching for options to cover the cost. It is essential to remember that your financial stability can be significantly impacted if student loans are misused. Try and exhaust all other options before accepting federal loans to prevent extensive debt post-graduation.

Paying for College

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