| Early college financial planning is key to having enough money for college. Ideally, students will begin researching options long before college financing is needed. Available options include:
- Federal Financial Aid
- Private Scholarships
- College Student Loans
- State sponsored scholarships, grants or loans.
- Employer sponsored scholarships or grants.
- Service grants – for example, students that serve with the Corporation for National and Community Service as AmeriCorps VISTA members may be eligible for education awards of $4,500 after 12-months. Many schools provide a dollar for dollar match for award funds.
- 529 College Savings Plans – these flexible savings accounts allow investors to save toward anticipated educational expenses
- 529 Pre-Paid plans - these accounts allow investors to lock in current tuition rates by saving in state sponsored and state guaranteed accounts.
- Savings Bonds – great gifts for kids
- Coverdell Education Savings Accounts
- Uniform Gifts to Minors Act Accounts
- Uniform Transfers to Minors Act Accounts
- Academic Competitiveness Grants – these small grants, funded by Congress, are available to first and second year students meeting certain requirements.
Planning ahead can help you understand and fulfill any requirements that must be met before you get your college financial aid. As college entry nears it is important to keep a calendar of upcoming dates and deadlines so that you don’t miss out on needed college financing opportunities. Be aware that state deadlines are usually earlier than federal deadlines for college loans.
Start early by visiting the U.S. Department of Education website during your junior year of high school. Juniors can visit the site to complete the FAFSA4caster, which estimates eligibility for federal student financial aid. You will need your social security number and birth date. You will be assigned a Federal Student Aid Pin, which you will use on your actual FAFSA application (completed during your senior year). The process takes only 25-30 minutes but it can really help you get a good picture of any last steps you will need to take in the remaining years before college.
Often students that do qualify don’t think they do so they don’t apply. When you don’t apply you don’t have access to all available sources of money for college.
The FAFSA application is also your access point for state aid, many student loans, Pell grants and work-study programs.
Final College Financing Tips…
- If you are applying for Federal Financial Aid, do so early and electronically to save time.
- Gather all required documents, including prior year tax returns before you begin financial aid applications.
- Talk with school counselors who can point you toward money for college you may not know about. Your counselor can also advise you of any additional forms that may be required by your college along with FAFSA applications.
- You do not have to pay a service to complete the financial aid process for you. You can do this yourself, at no cost, with assistance from the Department of Education website, school counselors and parents.
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