As of 2023, the average cost of college per student per year in the United States is about $35,000. Even if you’re the only child in your family headed to a university, your household may not have $120K saved up to fund a bachelor’s degree. This is why thousands of aspiring college students look to scholarships, federal student aid, and student loans to help cover the bill. While those funding options have the potential to pay the price, we’re here to help you identify the funds that won’t leave you drowning in debt after you obtain your degree.
Before you look to private student loans or credit cards to bankroll your degree, make sure you consider all of the options out there that stand ready to help you pay for or supplement the cost of your education.
Scholarships
Some people think of scholarships as something only possible for star athletes or the ultra-smart. That is not at all the case. Scholarships are free money awarded to students for dozens of reasons. Yes, scholarships are often awarded by colleges or other granting entities to outstanding athletes and students who demonstrate distinguished academic performance via their grades and ACT scores. But keep in mind scholarships are also awarded to students who demonstrate financial need.
If you are the dependent of a household whose annual income falls below a certain threshold, you could be eligible to have some or even all of your college paid for. If you are a head of household and make less than a defined margin, you could also be awarded a scholarship or grant money to cover your schooling.
Your intended degree is another reason you could earn a scholarship to cover your tuition. For example, if you plan on studying nursing, there are hundreds of nursing-specific scholarships awarded each year to high school graduates headed to nursing school.
Other Types of Scholarships
- Community Service Scholarships – You can get money just for being a good citizen who actively gives of your time or talent to serve your community.
- First in Family Scholarships – Are you the first person in your family to ever go to college? If so, there are grantors who want to help you get a degree.
- Leadership Scholarships – Maybe your grades were average, but you were president of your student council or held a leadership position on the debate team, and you captained the cheer squad. Great! As a born leader, you could get a scholarship.
- Legacy Scholarships – Did your parents go to college and love their school so much that they want you to go there, too? If you choose to follow in their footsteps, their alma mater may award your decision by granting you a legacy scholarship.
- Military Scholarships – As a member of the United States military, or a family member of one who has served, you are eligible for college scholarships that are granted in appreciation of your service.
- Scholarships for Moms – These scholarships are made available to women who have children and wish to pursue a degree.
- Unique or Weird Scholarships – Are you artsy, poetic, or enjoy a unique hobby? Some colleges and members of arts communities want to see you in college where you can exercise your innovation and creativity to help define the future.
It’s important to note that not all scholarships come without strings. The strings attached could require you to maintain a certain GPA or complete a specific degree program. To learn more about the many scholarship opportunities out there, check out Sholarships.com.
Federal Student Aid
Another important resource to tap into when trying to pay for tuition is Federal Student Aid. Federal Student Aid is an office of the U.S. Department of Education that provides student financial aid and loans for students in the United States. As the largest provider of education funding, the office provided $234.6 billion worth of aid to undergraduate and graduate college students for the academic year of 2021-2022. This aid includes grants, federal loans, tax credits, and federal work-study. The average aid provided per undergraduate student in 2021 was $15,300.
How do you access funding from Federal Student Aid? To find out what aid you are eligible to receive, you must first fill out a Free Application for Federal Student Aid (FAFSA®) form. The results of your form will determine what type of financial aid your college or university will offer you. The offer may include federal student loans. Aside from federal student loans, which we address below, your federal aid offer may include the following to help fund or supplement your tuition:
- Grants – Grants are financial aid that, like scholarships, generally do not have to be repaid.
- Work Study – Work Study is a federal work program for undergraduate and graduate students at participating schools to help them pay for school with the money they earn working.
Federal student loans are the third funding option provided by the Federal Student Aid office. While we suggest you look to options other than student loans to help fund your education, these loans are an exception.
Like all loans, federal student loans must be repaid, but they tend to have more favorable terms than a private student loan that comes from a bank, a credit card company, or your school. Federal student loans have fixed interest rates that are often much lower than private loans or credit cards. And, unlike private loans that require you to immediately start making payments upon graduating, reducing to half-time enrollment, or quitting college, federal student loans offer you a six-month grace period following those events before you are required to make your first payment.
For a full list of Federal Student Loans available from the government, go here.
There’s no denying it, obtaining a college degree is not cheap. We’re here to tell you that you don’t have to go into a lot of debt to achieve one. Before taking out multiple credit cards or applying for a student loan from the bank, tap into your options, like scholarships, grants, and government loans. For more information on how to achieve your college degree dreams affordably, check out these tips from the Consumer Financial Protection Bureau.