Ten Ways to Pay for School

Paying for college can feel like a Catch-22: you need a degree to make money, but you need money to pay for a degree. Fortunately, you may qualify for scholarships, loans, and grants to ease the financial burden. Whether you're attending college for the first time or returning for career training, the following ten ways to pay for school may help you reach your educational goals.

Grants and Scholarships

Whenever possible, you should apply for grants and scholarships. These forms of financial aid don't need to be repaid, so they won't contribute to your student loan debt upon graduation.

1. Merit Scholarships

Merit scholarships are awarded by organizations, colleges, and universities to students with impressive academic records. Similar to sports scholarships, merit scholarships often depend more on a student's abilities than his or her financial need.

2. Institutional Grants

College financial aid packages sometimes include institutional grants made by the college to the student. Because these grants don't need to be repaid, they are preferable to traditional student loans.

3. Federal Grants

The federal government has several different grant programs available to help students pay for school. Some of these programs, like the Federal Pell Grant, are available to all eligible undergraduate students who demonstrate financial need, while others, like the Teacher Education Assistance for College and Higher Education (TEACH) Grant, require students to enter a particular field upon graduation.

4. State Grants

Some State governments have grant and scholarship programs in place to help residents pay for college. These grants may be need-based, merit-based, or both.

Federal Student Loans

Federal student loans often make up the bulk of college financial aid packages. Many of these loans have low interest rates and require no payments until after graduation. To apply for any federal financial aid, you must fill out the Free Application for Federal Student Aid (FAFSA).

5. Subsidized Stafford Loans

Subsidized Stafford Loans are available to students at 4-year universities, community colleges, and career, technical, and trade schools, and they accrue no interest until graduation.

6. Unsubsidized Stafford Loans

Unsubsidized student loans are often awarded to supplement subsidized loans. These loans do accrue interest while you are in school.

7. Federal PLUS Loans

PLUS loans are made to graduate students and parents of dependent students regardless of financial need. These loans begin accruing interest immediately and the first payment is due 60 days after disbursement.

Additional Ways to Pay

8. Federal Work-Study

Federal Work-Study provides a set amount of money you can earn through working at your college or university. Since you earn this money through work, it does not need to be repaid.

9. Private Loans

Private loans for education are available through banks and other private lenders. These loans don't have the same low-interest advantages of federal student loans, so they should be used sparingly.

10. Home Equity Loans

If you are returning to school and own a home, you may be able to borrow against the value of your home to help pay for school.

Pay for School, Invest in Yourself

Whether you pay for school through an academic merit scholarship or a home equity loan, you are investing in yourself and your career. With the proper career training, you can meet your professional goals and build a rewarding future.