Affordable College
When Your Dream College Isn't Affordable
College financial aid letters force many students into making hard decisions. If your dream college or university isn’t offering enough financial aid, should you take on more debt to pay for your education there, or fall back to a more affordable school?
Unfortunately, there’s no easy answer. Before making your choice, consider these tips:
1. Compare Financial Aid Packages
Write down the amount of financial aid each school has offered (scholarships, grants, etc.), then preferred loans (federal Perkins loans and subsidized Stafford loans, whose interest is paid by the government while you are in school), and finally other loans. Compare this data with the school’s cost of attendance (tuition and fees, room and board, books and supplies, etc.). Which aid package will really save you the most out of pocket?
2. Review Your FAFSA
Are there reasons why you need more aid since filing your Free Application for Federal Student Aid (FAFSA), such as a job loss? If so, ask the school’s financial aid office if they will review the package they’ve offered. It is also important that you do not borrow more than you need. It is worth reviewing your budget to see if you can decrease your spending/expenses instead of borrowing more money. Be sure to exhaust grants, scholarships, and work-study opportunities which do not have to be repaid. These sources of financial aid can reduce the amount you will have to borrow or pay out of pocket.
3. Apply For Our Scholarship
Connected Credit Union grants four $1,000 scholarships to qualified students looking to pursue post-secondary education or graduate degree. The applicant must be a member, must have been accepted to an accredited college, university or technical school and must demonstrate passing grades in all subjects.
4. Explore private student loans
If you still need additional funds to cover your educational expenses, private student loans can be used as a supplement. Typically, you can apply for private student loans at any time before or during the year, but it's recommended that you apply early (at least 45 days before the start of the semester) to ensure that you receive the funds in time to pay for the academic period.
Disclaimer: Any reference made in this blog to a specific product, process, or service does not constitute or imply an endorsement by Connected Credit Union of the product, process, or service, or its producer or provider.
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