There are a variety of financial aid avenues that you can explore.

Scholarships

Scholarships are an excellent way to cover college expenses since they don’t need to be repaid. Each scholarship usually requires a unique application and can be competitive, considering various factors.

Tip: Once you’ve crafted a strong personal statement and gathered solid references, you can use them to apply for multiple scholarships. You may need to tailor them to each scholarship’s specific requirements.

Use our scholarship guide to find scholarships that are right for you. 

Grants

Grants, like scholarships, do not require repayment and are typically awarded based on financial need. Students can apply for various types of grants, including federal, state, local and institutional grants. The first step to access these funds is by completing the FAFSA.   

Federal Pell Grants, for example, award up to $7,395 per academic year, depending on your financial need, costs to attend school, status as a full or part-time student, and if you plan to attend school for the full academic year or less. 

State Aid

State aid offers financial assistance to support higher education for residents, with varying options such as grants, scholarships, loans, or work-study programs. Typically, to be eligible, you need to attend college in your home state. You can start by filling out the FAFSA and completing any additional state-based applications. For more guidance, explore the resources available for filling out the FAFSA and learning about aid options in your state.

Tip: Each state usually has a dedicated agency responsible for administering state-based financial aid programs. It’s important to identify this agency and regularly check their website for updates and program information. In New York, for example, the Higher Education Services Corporation (HESC) manages financial aid programs and services for college students.

Institutional Aid

Institutional aid is financial assistance that comes directly from the college you are planning to attend, and the key is to apply as early as possible. These include grants and scholarships but can also include institutional loans and work-study programs. Most colleges will only require FAFSA completion to be eligible, but some will require you to submit a CSS profile or their own institutional form.

Tip: Ask your college about any additional financial or institutional aid. Be sure to mention special circumstances, such as having multiple siblings in college or a significant drop in household income not reflected in your taxes, to increase your chances of receiving more assistance.

Work-study and Part Time Programs

Work-study programs allow you to earn money by working through your school, with eligibility determined by financial need. You’ll be informed of your eligibility in your financial aid award letter. Be sure to complete the FAFSA to be considered for federal work-study.

To take advantage of work-study, you’ll need to find a job on campus or with an approved employer. Most schools provide a directory of available positions that accommodate your class schedule, making it easier to balance work and study. It’s a great way to earn money and gain experience while in college.

Attending school part-time while working is another viable option. Although it may take longer to graduate compared to full-time attendance, this approach can help you manage college and living expenses, potentially reducing the need for loans and keeping you out of debt.

Federal Student Loans

When you have exhausted all grant and scholarship options, look at the leftover cost. If you still need money, you have different options for loans. Federal student loans should be your first choice when it comes to borrowing for college. They offer more protections, lower monthly payments based on income, and access to forgiveness and debt relief programs. Completing the FAFSA is your first step in determining your eligibility for federal student loans. Understand the different federal loans available.

Private Student Loans

Private student loans should be your very last resort and are often the most expensive. Private student loans are offered by banks, credit unions, and other private lenders. These loans will require a credit check and will often require a co-signer. The student borrower and co-signer are both liable for the loan. They offer fixed or variable interest rates. Creditworthy applicants may secure better rates compared to federal loans, but unlike federal loans, they are not eligible for forgiveness programs, disability discharge, or more generous repayment plan options based on your income.  

If you must take them out, fixed rate loans are generally safer and more predictable. Know what your monthly payment will be. Also know that if you have a cosigner, getting them released from the obligation to pay the loan if you, the primary borrower cannot make payments, is extremely difficult and late payments, delinquency or default will directly impact them and their credit. 

Learn more about the differences between federal and private loans. 

Tip: As a parent, you can borrow up to the full cost of attendance through Parent PLUS loans to cover your dependent’s undergraduate education. We recommend choosing Parent PLUS loans over private loans and avoiding the combination of both. Managing different types of loans can be highly challenging and complicate the repayment process.

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