Yesterday, I encouraged parents to not pay for their children’s college education. By leaving the simple detail of “how to pay for it” up to you, the student, it lets you take ownership and responsibility for your education and your own future. But without Mom and Dad and maybe Grandma doling out the cash, you’re going to have to be smart about how to pay for that education you desire. Here are some of the most straight-forward ways to pay for your education:
Grants
If you come from a low-income family, are a minority, are a woman, are a non-traditional student (outside of the 18-24 age range), or have some other distinct quality, you may qualify for a grant to pay for your education. Grants come in many forms, each with their own requirements and rules. Some require you to maintain a specific course load, some require a minimum GPA, and some are simply free-and-clear money for you to use for school. Regardless of your family’s income, your age, your gender, your skin color, etc., you should investigate if you qualify for a grant. Unlike loans and scholarships, grants are “free money” for school and normally don’t have to be paid back.
Scholarships
Before you even enter high school, you should be applying for as many scholarships as you can. It doesn’t matter if it’s a $100 scholarship or $100,000, your odds are infinitely (well, not quite) better than winning the lottery even for the most exclusive of scholarships. Most full scholarships are academically-based, but there is still a lot of money up for grabs if you’re not a straight-A student.
Believe it or not, but competition for the smaller scholarships is limited, if not non-existent. According to MSN Money, small and local organizations offer scholarships for which few apply.
A few simple Google searches can find thousand of scholarship opportunities for you; but be careful who you share you information with. There are a lot of scammers out there and you should never give your information to anyone you don’t trust and never pay for consideration for a scholarship. I remember using a free scholarship search service called FastWeb and got great results.
Student Loans
Once you’ve filed your Free Application for Federal Student Aid (FAFSA) form, you have access to federal student loans, including the Stafford Loans, Perkins Loans, PLUS Loans, and many other forms of financial aid. Loans are a perfectly acceptable way to pay for school, but the goal is to minimize the amount of money you must borrow. By getting all the grants and scholarships you can before taking loans, you will save yourself a great deal of money later.
Student loans afford you many financial opportunities that other types of debt do not. As long as you are in school, your debt is deferred so you don’t have to worry about paying until around 6 months after graduation – normally plenty of time to find a stable job. Once the debt starts coming due, you can also investigate consolidating your loans so you only have to worry about one payment, one interest rate (which can be lower than the original loan’s), and more time in which to repay. And when it comes time to do your own taxes post-graduation, the interest you pay on your qualified student loan is tax-deductible.
Summer Jobs and Paid Internships
No, a summer job won’t cover you for the rest of the year, but it will give you a nice cash infusion to at least help feed you through the school year. Most schools have a job placement program that works directly with regional and national employers to help students find summer jobs that pay well and help you use what you’re learning in school.
Some schools also offer placement into paid summer internships or longer-term co-ops that also give you course credit. My university required engineering students to seek out a semester + summer co-op in their discipline, so I used the opportunity to work with a software company (pre-dot-com bust). I got paid an equivalent of $35,000 a year, plus a housing stipend that more than covered my rent, and I also earned four non-graded credit hours. If you’re a junior in need of a break from school and some extra money, check if your school has a similar program.
ROTC and Military Service
While some might find this suggestion unpalatable, it is a great way to pay for school and a great way to serve your country and it can open up otherwise-unreachable job opportunities for you. By accepting a short-term obligation to the military, they will help or completely pay for your schooling through a variety of scholarships and grants. You can choose to enlist and fulfill your commitment before going to school, sign up for ROTC while in college, or receive payment for your schooling and then serve as an officer upon graduation. Remembering back to my friends who were in the Air Force ROTC, I definitely would have considered signing up if I didn’t already have a scholarship.
Once your obligations are met, you can either choose to continue serving or leave the military for civilian work. I know from friends through church and work that the benefits, training, and respect for veterans opens up a whole new class of employment opportunities to those who have served – ones well in excess of $100,000/year.
Part-Time Schooling and Tuition Reimbursement
When you’re going to school full-time, studying is your job. You’re paying for the best education you can afford and if you’re “wasting” your time earning a relatively small amount of money when you could otherwise be investing your time in your studies, you’re only robbing your future. But on the flip side, there’s nothing wrong with going to school part-time and working at the same time. By taking a shorter schedule, you can devote less time to your studies and that will give you the opportunity to pay for you education as you go. Not only that, your employer may offer a benefit of tuition reimbursement if the degree you’re seeking will help you in your job.
Of course, by taking only a few courses each semester you will stretch out your education and it will take you longer to graduate, but if you want the education and there’s no other way to pay for it, it’s a perfectly reasonable alternative.
Don’t Worry About the Money
Don’t worry about how to pay for college – there’s always a way. Instead, focus your energy on your studies so you get the most out of your time and your money while you’re at school. It’s important to have fun in college, but it’s much more important that you get the best education you can afford; the money will come later in the form of better job opportunities and higher and faster raises.
What About You?
Did I miss anything here? Can you think of other ways to pay for college? Think I’m wrong and parents should pay for the education? Share your opinion in the comments!
Photo credit: Srevatsan
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This is a refreshing post (the previous one also!). So may books/financial “gurus” nowadays tell you to save for your children’s education (some even tell you to do so before paying down your own debts/funding your retirement!). I agree completely with your thought process. I went to school on multiple scholarships and worked multiple jobs to pay for the rest. My parents were able to help occasionally when I ran short but not to their financial detriment. I chose to go to a small private (aka expensive!) university and most of my classmates’ tuitions were completely paid for by their parents and they were the ones off partying and skipping classes and some even dropped out 3rd or 4th year. They did not value their time there because they took it for granted. My husband and I are always puzzled when other parents are frantic about not saving enough for their children’s education. Thanks for the great information!
Thanks for this post! I have a three year plan to get myself back to college and get that Masters degree I’ve always wanted. I can’t afford it right now, so I am setting things up so I can. In the meantime I am taking classes at the local community college to get me back in the game and make me a better candidate for the school of my choice. Thanks for the link to Fastweb, I have heard good things about it!
As an enlisted member of our armed forces, there are more options than you mentioned in your military section. Currently, most members can go to school for FREE thanks to tuition assistance, which is 100% (up to a certain amount per credit hour per year). So you can go to school while serving your country. Plus, there are many on and off base organizations that grant scholarships and grants to military members to help pay for books. Also, we previously had the Montgomery GI Bill, which current active duty and retired members are getting the option to switch to the Post 9-11 bill. The new Post 9-11 bill will pay for 36 months of full time school at any state school (or the equivilant of the most expensive state school can be applied to a private institution), plus you get a stipend for books and basic allowance for housing at the E-5 with dependant rate. The housing allowance applies only if you are a full time student.
Donna – It’s sad to see people waste others money, but when you just hand kids everything that seems to happen eventually.
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Dawn – I’m glad this was helpful to you. Good luck with going back to school!
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Gypsie – Thanks for the information. Not being formerly-military myself, I’m not familiar with all the benefits. If you have any more, let me know!
I just had to comment on your statement that a summer job won’t cover you for an entire year.
My little brother just graduated from college in 2005. He spent his summers working long hours pouring cement, and he made it through college with very little (we’re talking maybe $500/yr) help from my parents and NO student loans!!!!
It *can* be done :)
Under the Military you should also mention the 5 military academies which are free with a 5-6? (that is what it was when I was considering it) year post education commitment as an officer. The Airforce, Army, Navy, Coast Guard and Merchant Marine each have one.
Hello. I am a college student currently taking out 45 grand a year to pay for college. I am a double major in classics and english lit, and will no doubt be starting my publishing career at a measly 30 grand or so a year. My parents make too much money for me to get a cent from the school or the government. While I completely agree with the fact that I appreciate my experience at school much more than others who are having their way paid, I will be living as a college student well after my bachelors degree because my monthly bill will be astronomical (1600 or so). In all reality, your options dont work for everyone. I work 30 hours a week and am taking 17 credit hours this term. The time Im spending working is really fruitless, as it goes towards things such as rent, the cable and the electric etc. I do not spend my money partying as others might and most of the time barely keep my head above water every month. Its unnerving to think that Ill still be living this way 10 years after my graduation. I would consider the military, but it seems to me that a degree in english lit and classics would do me absolutely no good there. I would never use them, and while some may be in these degree programs to “just get a degree” I am not. Id like to use the education I am paying so much for. If I wanted to only “get a degree” I might choose a more rewarding one when it comes to income and not simply doing what I love. I wouldnt mind working “part time” I guess you could say to serve my country and help foot the education bill, but every option seems to have the minor possibility of going overseas. Going overseas surely takes me away from NYC/Boston or any other big publishing city. Are there any more ideas for me? I get tiny amounts of money from the scholarships I find online, and while I know every little bit helps, it sometimes feels fruitless. I just wanted to know if there were any more resources I havent tapped in to. Im soon to be 180,000 in debt and making 30 a year. (Before moving up, obviously) Im at a good school (University of Miami) and dont want to give that “name brand” up for a state school education, which seeing as Im not a Florida resident, would really save me very minimal money in the end while losing the experience at this school that I love. Help??
Chelsea,
By you own statement, it appears you realize that you have choices you can make that could make your educational journey easier, but you don’t want the drawbacks. With all decisions, there are consequences. A consequence of joining the military is the possibility of active duty deployment. A consequence of choosing a different school is the possibility of different opportunities. A consequence of choosing your degree is the potential low starting salary.
There are many schools across the nation that offer the same degree you’re pursuing. You could go to an in-state school and save a great deal of money. Search for schools in your home state (or a state that has a deal with yours – there are many opportunities like that) and see about transferring credit. That is only one possibility of many.
You talk like you’ve painted yourself into a corner, but there is always a choice. Your school’s name and GPA will only matter for the first few years after you graduate. After that, employer’s look at your resume and the demonstration of your skills. I went to a highly-respected state school whose tuition is usually around $10K per year and I found a job after graduating that only paid $33K. Within 5 years, I was making more than twice that amount because of my skills – not where I got my degree.
One way or another, you’re going to have to make a sacrifice. If you stay at that school, you’ll continue pay out of your nose (with no guarantees of a job after graduation anyway). If you move, you may not be as happy or you may not get the same education. If you join the military, you may be ordered to do things you don’t feel you want to do. In the end, you have to decide which sacrifice to take and live with it.
Thank you for contacting me and I’m sorry that there is no easy answer. Unfortunately, having to make life-affecting decisions and accepting the consequences is part of being an adult. Good luck!
Hello,
I was a student at a very good school in my state but unfortunately i got to party crazy and got really bad grades throughout my freshman year. I no longer can get any loans because of the grades i’ve had and i cant afford to pay 10 k out of my pocket every year to go to a school… right now i cant afford to pay anything. My parents have cut me off and wont give me any money whatsoever and im having a very difficult time finding a job at the moment and even if i did manage to find one i still wouldnt be able to afford schooling unless i went to a technical school for two years (which is fine by me) i guess i’m just asking if theres any other suggestions for me? I have looked into the navy and could get money for school but i honestly just dont want to be moved away from my home…. i love where i live and dont want to be sent anywhere else. If i manage to find a job soon i could save up enough to go to a technical school but i would be extremely broke and I honestly dont even know if it’d be doable. My wish would be to go back to the school I was at and get myself back on track with better grades and whatnot, I guess im asking if you know of something like a loan you might know about that would supply me with enough money to go to a good school and that my parents wouldnt have to sign off on. If you do know of anything i could be doing besides going into the armed forces to help pay for my college PLEASE let me know because right now that seems to be my only option and i really dont want to…
I don’t think that parents SHOULD pay for school but be careful about how easy you make it sound. Many students will run into logistics that will hold them back. I graduated 13/456 students in high school, scholarships and the whole package freshmen year. Half way through sophmore year, my parents cut me off financially. By this time I had two paid internships but no job because they wouldn’t allow me to work while in school. I found that if your parents still claim you as dependent, and make enough money on FAFSA to pay for school, the student will only be awarded PLUS loans which can’t be taken out without a parent cosigner. If you don’t have enough credit history, even with a credit score above 700, you won’t be able to take out loans. And believe me working every night after class is hard work: on the other hand, the money wasted in the “other charges” one pays for a semester doing school half paced is also expensive. Do-able (I’m graduating in 4 years with 2 degrees and am already enrolled in grad school) but harder than you make it sound.
I just became an independent student. I have no help financially and because of my location can not really get a job unless i have a car. I have a 16,000 tuition bill that i have to pay out of pocket and have applied for many scholarships without success. I have also exhausted all of my options as far as getting more aid from my school. I currently do not get in state tuition although i have lived in MA for a year because i can not prove that i lived here. So for the rest of my school year, although i live in the state i go to school in, i have to pay out of state. What can i do besides go to the military in order to get more money to pay for college?
The difficult thing about going back to college is not going to be the cost of tuition/books/fees. I will have to quit my job, which is quite good, and lose my health insurance benefits, which are great. And then, I have to pay to live. It is recommended that we do not have a job during our program, which will include the summer semesters. Paying for housing, transportation, food, utilties, insurance, etc. seems like an insurmountable feat. If I have to borrow the money for all (or most) of that during the years I am in college, the price of tuition will be the least of my worries.