Selecting a College That You Can Afford

College may well be one of the biggest financial decisions you will make in your lifetime. Where you decide to attend college will help direct your career path, and can also impact your financial future. As such, understanding the resources that may be available to you is a crucial part of setting yourself up for financial success.

Free Application for Federal Student Aid

Regardless of family household income, there is a not an income limit to qualify for or to apply for the Free Application for Federal Student Aid (FAFSA). While income is one component that is considered in this aid decision, family size, your year in school, and the cost to attend are additional factors. What’s more, some grants and scholarships available through the FAFSA program do not factor income into the aid decision; these include state grants and scholarships. Nonetheless, the aid amount can include grants, loans, and institutional merit aid (for students demonstrating exceptional abilities outside of financial need). Students are encouraged to complete the FAFSA every year they are in school.

Grants

Grants are a source of financial aid that generally does not get repaid. Keep in mind, grant funds may have to be repaid if a student withdraws early or does not complete service obligations specific to the grant awarded. There are a variety of federal grants available through the U.S. Department of Education. The most commonly known is the Federal Pell Grant. This grant is awarded to undergraduate students who demonstrate a financial need, and have not yet earned a bachelor’s, graduate, or professional degree. The award amount is subject to change annually, and the maximum Pell Grant award for 2024-2025 is $7,395. Typically, there are less grant options as compared with scholarships due to the financial need factor.

Scholarships

Scholarships are an excellent source of funds to help offset the cost of attending college. In addition, scholarships are available through non-profits, schools, and private companies. Unlike grants, scholarships are often based on more than financial need. For example, scholarship awards are given to students for athletics, academics, field of study, and via scholarship competitions. Some scholarships cover the entire cost of tuition while others come as a one-time award. Free resources to learn more about scholarship opportunities include college financial aid offices, high school counselors, organizations related to your field of interest, your employer or that of your parents’, and professional associations.

Federal Student Loans

Loans are financial obligations and must be repaid with interest. Responsible borrowing entails borrowing only what you will need and requesting additional loan funds if needed. Credit checks and cosigners are typically not required for federal student loans. Furthermore, federal student loans offer flexible repayment options and interest on some loans is not required to be repaid until after you graduate or leave college.

Financial Investment

Once it is clear how much free financial aid you are eligible for, it is equally important to consider the debt you may have to take on and repay as part of your financial aid package. Not all career fields will offer a positive return on investment. Therefore, careful consideration should be given to selecting a college that you can afford.