R2C Community Story: Methods to Pay for College

I've many userful stuff here about affording university. This is what I understand:

FAFSA Is for Everyone

Anytime after October 1 of your student's senior year of senior high school, parents should file FAFSA to be entitled to Direct Federal Loans, and/or a Pell Grant. An EFC (Expected Family Contribution) number is made whenever you complete the FAFSA. Keep in mind that the EFC is just an estimate, and the amount you wind up paying can vary in the actual EFC you receive.

The decrease your EFC, the less you are able to theoretically manage to pay for college. With a minimal enough EFC a student becomes eligible for a Pell Grant, which is additional money for school that doesn't need to be repaid.

Find a College having a Reasonable Net Price

This is my BIGGEST, FAVORITE tip: The “net price” may be the amount that parents have remaining to pay for after all institutional scholarships or need-based aid has been factored in.

Use an internet Price Calculator

Google the school you have in mind, find their net price calculator, and input your information (usually a state of residence, grade point average, test scores, income, and savings). The calculator will estimate your net price.

It will look nearly the same as the award letter you would receive after being accepted.

Do this prior to visiting or even apply. Eliminate schools you won't be able to afford without staggering debt. The more questions the net price calculator asks, the more accurate the results will likely be.

Negotiate

Try to barter together with your best choice colleges (after your student is accepted, but before they're enrolled). Always request more scholarship money. Always ask. Really. Even if it's already close to affordable using their initial offer.

The closer you're able to May 1st (or decision day), the more generous a college that isn’t meeting their enrollment quota tends to be.

Try Private Scholarships

Apply web hosting scholarships. Just pricier magic here, it can be a large amount of work with the reduced likelihood of getting even a few hundred dollars. If you're lucky, you’ll receive a few thousand.

Applying for many private scholarships is usually Not really a way to bridging big gaps in affording college. Your efforts spent finding colleges with a closer-to-affordable net price to begin with will typically yield far greater dollar amounts.

Consider Other Sources

Here's what some parents do:

  • Borrow against their 401k retirement savings.
  • Take a second mortgage on their own home.
  • Accept the college-offered monthly payment plan–cash-flowing the total amount due each semester. What this means is putting aside cash on a regular basis from income. The most common income source is a paycheck, but rental income or supporting your children (among other things) could be a steady income source too.
  • Put the amount due each semester (or their payment per month plan amount) on the 0% interest charge card and use it to earn rewards points.
  • Some (using the means) simply use their savings or 529.
  • Sell stocks or assets to cover college.
  • Take out a Parent PLUS loan. These require careful research since they have high origination fees and high-interest rates.
  • Take loans with private lenders offering somewhat better terms, such as potential co-signer release options, lower rates of interest, or no origination fees. (Private loans for parents and students are available from banks, lending institutions, assuring agencies, with both fixed rates and variable rates. Generally, you cannot borrow more than your school's total price of attendance. Before applying for private loans, make sure you've requested federal loans. You will find differences between them in repayment terms, rates, along with other features.)
  • Review their household budget and then try to trim expenses, for example: refinancing, reducing takeout, hair appointments, vacations, and reducing 401k contributions. These tactics can free up money for school, however, it's usually not going to be enough on its own for middle-class families. So don't expect a miracle here.
  • Pick up side gigs like driving for rideshare companies, delivering food or packages, starting a home-based business.

Lastly, It sometimes Is effective Be Humble

Generous relatives or wealthier than you (at the moment) family members may also be able to help. For instance, despite the fact that my loved ones isn't rich, when any of us have kids attending college, when we allow it to be known those funds is going to be tight for any semester–almost all of us will pitch in some amount. Many people only think of grandparents in no time of need, but second cousins once removed may be there for you personally as well.