No Money Saved? Here Are 6 Ways to Pay for College

Are you concerned about the cost of college? Don't worry. You can make getting a degree more affordable.

From grants, scholarships, and student loans to attending community college, many options are available to help make college more affordable. Here are six ways to pay for college if you don’t have money saved.

1. Apply for Scholarships
   Scholarships are an excellent option because, unlike loans, the money doesn’t have to be paid back as long as you meet all the obligations. Schools offer a variety of scholarships, including those based on merit, athletics, financial need, and other factors. Most scholarships require an application, an essay, or other materials. Some scholarships offer a full ride if you meet the qualifications, meaning they pay for the entire cost of earning your degree.

   You can also explore scholarships offered by cultural, professional, and religious organizations in your area. These can sometimes be small, but every bit helps.

2. Apply for Financial Aid
   Your next option is to apply for financial aid, including federal and state grants. Like scholarships, grants typically don’t have to be paid back.

   Depending on their financial situation, college students may be eligible for several types of federal grants. Undergrad students who demonstrate financial need might qualify for a federal Pell Grant.

   To apply for federal aid and determine what you’re eligible for, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA®). After you submit the FAFSA, you will receive a copy of your Student Aid Report (SAR) listing what financial aid is available to you. The colleges you apply to use the information you provide in the FAFSA to calculate your Expected Family Contribution (EFC), the amount your family is expected to contribute to the cost of your education.

   People rarely consider it, but negotiating with your school for more financial aid is another option to help reduce how much you pay. It never hurts to ask.

3. Consider Student Loans
   If grants and scholarships don’t cover the costs of attending school, you can look into taking out a loan. Consider federal student loans backed by the U.S. Department of Education, which offer benefits such as low-interest rates, income-driven repayment options, and student loan forgiveness programs. You must fill out the FAFSA to be eligible for federal loans.

   If you still need more money for college, you can look into private student loans. These loans can be used for tuition, books, housing, and other expenses. Unlike federal student loans, private student loans require a credit check, and you’ll likely need a co-signer who will guarantee the loan. A co-signer can also help you get a lower rate.

4. Take a Different Approach
   Think about starting your pursuit of a degree at a local community college. You can fulfill many basic education requirements at a lower cost while living at home and save on the room and board expenses at a four-year college. Some community colleges have transfer agreements with four-year schools. Learn how the transition works from the beginning, or you may waste money and time.

   After transferring those credits to a four-year school, consider taking a heavier class load each semester so you can finish sooner to save on tuition costs. Another option is to take a lighter class load that lets you pay as you go.

5. Earn While You Learn
   Grants and loans aren’t the only types of financial aid available. Federal work-study programs offer you the option of part-time work while you are enrolled in school to earn while you learn. You will make at least the federal minimum wage, possibly more, and every dollar helps. You’ll need to fill out the FAFSA to apply.

   If you don’t participate in a work-study program, think about an on-campus job to help pay expenses, and consider working over the summer.

6. Create a Budget and Cut Expenses
   Creating a budget is a great way to save money, especially when funds are tight.

   Look to reduce expenses where possible, like buying used books instead of new ones, sharing books, or opting for digital editions. If you choose a school close enough to commute to, you'll skip the costs of on-campus dorms and meal plans.

   The goal is to trim expenses, stay within your budget, and start saving when possible.

Understanding your options helps you to make decisions that fit your situation. With your budget in place, open a First United Bank savings account and put money away for your college goal. Schedule an automatic monthly transfer from your checking account to your savings account. Your savings will grow with little attention from you. Contact a First United relationship banker if you need more information or would like help planning for college.