There are many ways to fund your future. Consider the following options to help cover the cost of college and reduce your future debt. Keep in mind that federal student loans and other borrowing options can help cover costs, but make sure you�re not borrowing more than you can afford to repay. Our Affordability Calculator can help guide you on the maximum amount to borrow.
Step 1: Apply for Financial Aid.
Your first step should be to complete the Free Application for Federal Student Aid (FAFSA), which is what determines your eligibility for federal financial aid. In order to receive any federal financial aid, you must complete the FAFSA. You should fill it out even if you don�t think you�ll be eligible for federal aid or don�t plan on borrowing federal student loans, to understand your aid options.
The FAFSA is free to use and is most easily completed online or with the myStudentAid mobile app. Your completed FAFSA will be sent to the colleges that you list on your FAFSA, and they�ll use that information to put together your financial aid offer.
- For step-by-step guidance on filling out the FAFSA, the U.S. Department of Education has a helpful guide.
The FAFSA also unlocks most state financial aid. States have their own aid application deadlines and offer varying amounts of aid.
Step 2: Apply for Scholarships.
Grants and scholarships help millions of students cover college costs, and are your best bet for helping you pay for college. This type of financial aid is sometimes called gift aid because it doesn�t need to be repaid. You can receive scholarships based on financial need (�need-based aid�) or for reasons like academic achievements, personal background, or career interests (�non-need based� or �merit aid�).
You can receive grants and scholarships from different places, including the federal government�s Department of Education, state governments, colleges and universities, and private organizations like businesses, nonprofit organizations, and philanthropies. Each of these programs is different, with a range of eligibility requirements.
- Use websites like the U.S. Department of Labor�s CareerOneStop Scholarship Finder to explore your scholarship options.
Step 3: Use Grants if You�re Eligible.
The Pell Grant is a need-based grant provided by the U.S. Department of Education to undergraduate students with significant financial need. If you�re eligible for a Pell Grant, how much you receive depends on your level of financial need and whether you are a full-time or part-time student. For more information on the Pell Grant, the U.S. Department of Education Federal Student Aid Office has some helpful resources, including this guide to other, smaller federal grant programs.
Step 4: Find a Work-Study Job.
The federal work-study program gives you an opportunity to earn money in a part-time job to help cover expenses you face during the year. Work-study aid is not a guarantee of money or a job � if your school offers you work-study aid, the amount of aid you actually receive will be based on the hours you work in a qualified job that you secure yourself.
Step 5: Ask Your School for More Funding.
Requesting more financing may be a good idea if the information from your FAFSA no longer reflects your current financial circumstances, or if you experience a major life change (like having a child, losing a job, or facing increased medical costs) during college. These requests are called appeals, and the college could grant your appeal by adjusting your expected costs or updating the financial information used to determine how much financing you can receive. There�s no guarantee you�ll get more, but making the request costs nothing but time, so don�t hesitate to ask if you need it.
Contact your college�s financial aid office for information about how to complete their appeals process. They may send you forms to fill out and/or request that you submit an �appeal letter.� If you�re not sure what to write, SwiftStudent�s free appeal letter templates may be a helpful starting point.
Step 6: Find Out About Emergency Aid Programs.
Some colleges operate emergency aid programs to help students dealing with unexpected expenses. If you find yourself with surprise costs that will make it hard to stay enrolled, make sure to contact your school�s financial aid office and/or student affairs office to see if any emergency aid or other support resources are available. Emergency aid could take the form of grants and/or no- or low-interest-rate loans from the school. Some schools offer vouchers to cover transportation or food specifically, and many schools provide free food pantries for students. Your school can also help you determine if you�re eligible for other non-financial aid benefits programs that can help with medical insurance, housing, food, and childcare.
Step 7: Revisit Your Budget.
Look at your budget to try and identify places where you can reasonably reduce your costs. Some college expenses will be fixed, but others are affected by choices you make throughout your enrollment. It may be possible to reduce how much you spend on books by buying them used. Or maybe there is a more affordable living arrangement you can consider. When exploring different budgeting options, be realistic about what it will take to maintain your personal health and safety � eating less food than you need, for example, is not a reasonable way to manage a tight budget.
Step 8: Find a Part-Time Job.
Working while you�re enrolled can help you cover costs and gain useful experience � particularly if you find a job that is aligned with your academic and longer-term career interests. When considering work, keep in mind that working more than 15 to 20 hours a week can make it harder to study, complete your classes, and succeed in school. If you�d need to reduce your course load to accommodate extra work hours, you will extend your time in college, which adds cost in the long run. On-campus jobs that offer flexible hours that accommodate your class schedule are a good first place to look.
Step 9: Borrow Federal Student Loans.
Federal student loans, provided by the U.S. Department of Education, are the most common � and safest � option for those who need to borrow, and allow millions of students to attend college each year. Federal student loans offer important benefits for borrowers. If you need to borrow, make federal student loans your first choice, and exhaust your federal student loan eligibility before considering any other types of loans. Federal student loans provide low, fixed interest rates and repayment options typically not matched by nonfederal loan programs.
- Borrow What You Need. Whether and how much to borrow, up to the maximum amount allowed, is your choice. You don�t have to borrow the full amount offered by your school. If you decide to borrow less, you can also request additional loans later on, so long as your total aid (including student loans) doesn�t exceed the school�s total cost of attendance.
- Our Affordability Calculator can help guide you on the maximum amount to borrow. The U.S. Department of Education�s Loan Simulator can help you explore the expected costs of borrowing federal student loans, including how much interest adds to the cost of a loan.
If your parents are able to borrow to help support your education, the federal government also offers Parent PLUS Loans for parents. These loans have higher interest rates and fees than federal student loans but have fewer credit requirements than private education loans.
Step 10: Consider Private Loans.
While the federal government runs the largest student loan program, loans are also available from other, nonfederal sources, like banks, credit unions, and some states and colleges. Private loans are generally more costly and don�t guarantee the same repayment options or protections that come with federal student loans, which is why federal student loans should be your first choice if you need to borrow.
If you�ve already borrowed the maximum amount available in federal student loans and exhausted all other alternatives, borrowing additional loans provided by a private lender like a bank should be a last resort option. Use our calculator to make sure your total loan burden will be affordable. As you consider a private loan, be sure to take the time to read and understand the terms of the loan, including what safeguards are available if you hit hard times.