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Personal Finance Courses: Education and Employment

Introduction to Education and Employment Education Paying for College Employment Getting into the Job Market Writing Your Resume Summary of Education and Employment
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Paying for College

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Paying for College

Once you’ve decided to go to college, it is important to build your understanding of how to pay for college. In general, college is paid for through money that’s been saved on your behalf by you or others, part-time or full-time employment you intend on having during college, and through various sources of financial aid. Your goal should be to borrow as little money as possible to pay for college. This is important so that you have a manageable student loan payment after graduating from high school and beginning your career.

Let’s take a deeper dive into financial aid.

Facts about financial aid

Student financial aid in the United States is funding intended to help students pay educational expenses including tuition and fees, room and board, books and supplies, etc. for education at a college, university, or private school. It comes in the form of grants, scholarships, school loans, and work-study.

  • Grants and scholarships are typically free money, which does not have to be paid back, but can have some terms and conditions.
  • Work-study is aid that you receive while you work a campus job. It usually goes toward books and other costs.
  • Loans are funds that need to be repaid. There are a variety of sources from which loans can be obtained and include federal, institutional, and private/alternative.

Other terms

  • Tuition and fees are basic costs for your educational program at a specific institution.
  • Cost of attendance typically includes tuition and fees, books and supplies, room and board, personal transportation, health insurance, and other required fees and expenses. You do not necessarily need to borrow the full cost of attendance but only what you need to cover these costs.

Financial aid is not …

  • Automatic. If you don’t fill out the FAFSA (Free Application for Federal Student Aid), you will not receive a financial aid award letter. Make sure that the school you are applying to is noted on the FAFSA.
  • The only way to pay for school. You can save for college to pay for parts of college expenses (books, room and board, supplies, etc.) You can also apply for outside scholarships. Remember, financial aid is awarded, but it does not always cover ALL of your college expenses. There are scholarships that you can apply for before you go to college as early as your sophomore year in high school. The most scholarship money is given out to high school seniors. Additionally, you can apply for outside scholarships while you are in college through graduate school.
  • All free. Remember, loans could be included in your financial aid award, and that is money that must be paid back. You have to decide if it is worth taking it out. That is determined by total tuition costs and how much you can afford to pay on your own.
  • Money to flake off. On occasion, you may receive what is called a refund check. This is money you get back if your financial aid covered all of your expenses for each semester. Some students don’t receive anything back. Others can receive hundreds or thousands of dollars back. It is tempting as a college student to spend it all on fun things. However, you may owe the school money the next semester if you do not check. Additionally, you may not actually NEED the extra, and if you took out loans, you will have to pay this money back with interest. Financial aid is money that should be used only for school and the expenses associated with school.

What is the FAFSA?

The FAFSA is the Free Application for Federal Student Aid. You have to fill the application out every year that you plan to go to college to receive federal funds from your school in the form of loans, grants, and scholarships.

Tips on filling out the FAFSA

  • Fill out the FAFSA early, as soon as possible after you and your parents file your yearly income taxes.
  • Get your parents involved because you will need their filed income tax information from the previous year. You will need to do this every year until you turn 25. Further information regarding parent information can be found on the https://studentaid.gov/ site.
  • Complete the online form. Make sure you complete the form on the official FAFSA Website (https://studentaid.gov/). There are other organizations that try to have you complete their FAFSA form and then charge you a fee for using their Website.
  • Make sure to check on the processing—call your college’s financial aid office to see if they have received it. Also, check with your college’s financial aid office about additional paperwork that you need to get the award letter processed.

Scholarship search resources

Scholarships are free money. You should take the time to pursue as many scholarships as possible to help you pay for college.

Talk to your school counselor. Work with the guidance counselor at your school to identify potential scholarships to apply for. There may be a variety of different scholarships offered by local organizations in your community. Additionally, there are scholarship awards provided by thousands of organizations across the country. Also, the colleges you are considering likely have scholarship opportunities for you to pursue.

You can find scholarship information online. Conduct a scholarship search online. Use scholarship sites or go to your college site and look for scholarships offered by the school of your choice. Once you have a few you can apply for, learn the deadlines and begin applying. Here are three Websites available to help you with your scholarship search.

Remember the following tips when applying for scholarships:

  • Apply for EVERYTHING you are eligible for. You never know if you can get it unless you apply.
  • Talk to your counselor and teachers about opportunities.
  • Research opportunities at the school of your choice.
  • Start researching early to ensure that you do not miss deadlines. Scholarship deadlines are often 6–8 months prior to the start of the academic year.
  • Have a parent or teacher look over personal statements and essays. Many scholarships require you to write these as part of their application.
  • Work on your grade-point average (GPA) and get involved with extracurricular activities and volunteer work. Colleges like to know that you are a well-rounded student.

In summary

Be sure to understand the time and financial commitment necessary to achieve a college degree. Use the resources cited in this course to learn more and talk to trusted friends and family about your decision. Additionally, download a college preparation checklist from Federal Student Aid, an office of the US Department of Education.