Paying for College: Finding Financial Aid

Are you stressed about deciding how you are going to pay for college? You aren’t alone, very few people are lucky enough to get a full scholarship to the school of their choice. Fortunately, there is no need to worry, because there are many financial aid options available to help fund your college education. Many colleges will even work with you and your family to help find the best possible solutions to finding financial aid. Unfortunately, so will scammers and others who want to profit from your situation.

Now is the time to start considering your alternatives for paying for college. They include:

  • Scholarships – A variety of scholarships of all kinds are out there. See the most notable or get general scholarship-hunting advice. 
  • FAFSA – The "Free Application For Federal Student Aid" is very best way to help you and your family find your eligibility for financial aid.
    • Grants – Federal grants are available for students with financial need, and never need to be paid back.
    • Loans – Private and federal loans are options available that can help you and your parents, based on your financial need.
    • Federal Work-study – A unique opportunity that includes part-time employment on campus as a way to help fund your education.
  • GI Bill – Military veterans who have served in the military at least 3 years are eligible for full financial aid up to a maximum equivalent of the in-state tuition at the most expensive public college in their state of residence.

Another thing to remember about financial aid is that, in the words of Andrew Gillen, the current financial aid system is broken. As his "Financial Aid in Theory and Practice" (PDF) white paper states,

"The most widely recognized flaw is that a convoluted application and distribution system prevents those who need aid the most from getting it. As a recent study from the Center for American Progress noted, the 'primary difficulty with cur-rent federal financial aid policy is that it is poorly understood by nearly all of its constituents.' "

One hope for the improvement of the financial aid system lies in student-loan reform. Learn about the latest in student-loan reform on our blog, which discusses Pell Grants and borrowing from the Department of Education. While you're there, check out "the rising price of inequality," the risk of college debt vs. bachelor degree costs, and how private colleges sometimes actually cost less than public ones.

Finally, if you have student-loan debt, see three options for paying it off.