The 5 Steps to Financial Aid
We get it. The financial aid process is confusing. It's hard to know what to do and when. These steps will help you through the process - from getting free money first to making sure you can pay your tuition bill.
Check out the five steps to pay for school and get started today.
- Look for scholarships, grants, & other free money first
- Identify your specific deadlines
- Fill out the FAFSA
- Compare schools' financial aid offers carefully
- Be sure you have the money you need
Step Five: Be sure you have the money you need.
Make sure you can pay your entire education bill
Once you have received your financial aid award, you need to make sure you have enough money to cover all of your education costs.
Make smart decisions about borrowing
If you have checked into scholarships, applied for grants, received a federal Stafford and/or PLUS loan, and still have costs to cover for college, now you should consider an alternative loan.
- Be sure you have exhausted all other financial aid options before applying for an alternative loan.
- Borrow only what you need to cover your costs, not what you are eligible to receive.
- Understand the terms. Alternative loans often have higher interest rates, more fees, and less flexible repayment options than federal loan programs.
- Find out if you can defer payments while in school or get a lower interest rate with a cosigner.
You also should find out if your school offers payment plans which let you distribute your payments throughout the year.
Know the hidden costs
Often, there are hidden costs to attending school which may not be covered by your financial aid award.
These could include:
- Higher living expenses at schools located in major cities.
- Higher cost of transportation if the campus is large or public transit options are limited.
- Higher cost of having a social life - from buying a pizza to attending a movie, these costs add up.
Be careful with credit cards
Credit cards are extremely easy to get and use. Usually, they have low limits and high interest rates for students who have little income. Keep in mind:
- Some credit cards offer low introductory interest rates. Make sure you know what your rate will be after the initial offer.
- If you miss a payment, some credit cards will automatically raise your interest rate.
- Cash advances can be tempting, but usually come with a higher interest rate.
Take action
- Find out how you can pay off your student loans faster at StudentLoanRebates.com.
- Learn how to manage your money, student loans, budget, and credit cards at YouCanDealWithIt.com.