College costs today can vary widely from school to school, and can also extend well beyond just tuition and books. From high-tech laptops and pricey college dorms to transportation to get to school and supplies for class, a clear plan for paying for college expenses is crucial to being able to afford the education you’re hoping to achieve.
No matter how you slice it, college is expensive. A solid plan of how you plan to pay for your education is a must in order to be prepared when the semester starts and tuition is due. Whether you are just graduating from high school and starting out on your new college journey, are a career-focused professional returning to school for a better position, or simply have the goal of pursuing further education for self-improvement, early planning can go a long way in helping you successfully fund your college costs.
Tips for Paying for College for Every Type of Student
· Identifying All Potential Expenses
When it comes to carefully planning for college, you must first understand all the costs involved with your education. And while we usually consider the traditional expenses such as tuition, housing, school supplies, and textbooks, we often overlook things like the cost of childcare, required technology, commuting costs, and more when considering paying for college. Having a complete list of all education expenses as well as a detailed budget for them not only allows you to know if you can afford to attend your desired school but also reduces the risk of surprise expenses that can wreak havoc on your budget during the semester.
· Scholarships and Grants
Savvy potential college students should plan to focus on securing as much free money as possible as a means of paying for college. This includes local, state, and national scholarship opportunities that may be available, as well as need-based and merit-based grants that don’t require repayment. There are a variety of resources to search for scholarships at no charge, like the financial aid office at your college, a high school counselor, and the U.S. Department of Labor’s free scholarship search tool. Submitting a well-tailored application and meeting deadlines is crucial for increasing your chances of earning a scholarship and paying for college.
· Student Loans and Other Financing Methods
There are a variety of ways to consider paying for college and a plethora of resources to help make it affordable. There are federal student loans, including subsidized, unsubsidized, and PLUS loans, as well as different types of private loans to pay for college tuition. Pay attention to interest rates when obtaining student loans as well as repayment options, and, of course, the potential long-term impact of student debt on your financial situation. Please be aware that credit cards are fine as a tool for minor college-related purchases. However, the higher rates on credit cards make them a bad choice for large and expensive tuition costs.
· Financing Options for Career Seekers and Parents
Homeowners who need help paying for college have the option of using the equity in their home to cover expenses. Whether you need to fund your own continuing education or help cover a child’s college costs, a Home Equity Loan or HELOC is a viable option. A HELOC from MPCU can offer lower interest rates and possible tax benefits when paying for college expenses, but students should be aware that there will be closing costs for the loan and the home will be used as collateral, so homeowners must weigh whether this aligns with their current financial goals.
· Building a Supportive Budget
- Creating and maintaining a budget while in college is crucial to being able to afford it. Members Plus offers budgeting apps to help stay on track. In addition, you can use spreadsheets or other tracking tools to maintain your budget while in school. It is also important to set aside as much money as you can while attending classes for emergencies or unexpected school fees that may arise. Developing good money management skills in college will help form positive long-term financial habits that will help you achieve your goals in the future.
Members Plus Credit Union Offers Financial Resources for Every College Student
Savvy students understand the different types of financial tools and resources available for college, including scholarships, grants, loans, and home equity products. It is important to choose a strategy for college expenses that suits your specific needs. Planning early, staying organized, and consulting with financial advisors or school counselors for personalized guidance is always a smart choice when it comes to funding your education. We invite you to contact the loan professionals at MPCU to learn more about your options for paying for college and how we can help you get the education you deserve.
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