How to Pay for College

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Whether you’re a high school student researching which school to apply to or you’ve already gotten an acceptance letter, it’s never too early to start thinking about cost. College tuition and other school expenses can add up.

There are plenty of ways to pay for school, including filling out the Free Application for Federal Student Aid (FAFSA), and applying for grants and scholarships. The earlier you start to plan, the more time you can devote to things like choosing classes and picking a major.

• How to prepare to pay for college
• Fill out the FAFSA
• Grants and scholarships
• State-based aid
• Submit the FAFSA for next year
• Consider private student loans
• How to pay for college while in school

How to prepare to pay for college

You can prepare to pay for college in a number of ways, including completing the FAFSA, seeking out grants and scholarships, and if you’re a parent, opening a college savings account for your child. It’s absolutely essential to submit the FAFSA — and receive your school’s financial aid package — before turning to private student loans to fill in the gaps.

Apply for aid by filling out the FAFSA

The FAFSA provides details about your family’s financial situation to the U.S. Department of Education. The information is then shared with the colleges you intend to apply to and state agencies where those schools are located.

Why you should fill out the FAFSA

The FAFSA is your gateway to federal, state, and school-based student aid. That includes federal student loans (money you have to pay back), grants (money you don’t have to pay back), and work-study positions (money you have to work for).

Tips for filling out the FAFSA

Fill out the FAFSA as soon as possible after the application window opens on Oct. 1. Many grants and scholarships that are available on a first-come, first-served basis require that you fill out the FAFSA to qualify.

Learn More: 529 Plan: Invest in a College Savings Account Early

Fill out the FAFSA as soon as possible after the application window opens on Oct. 1. Many grants and scholarships that are available on a first-come, first-served basis require that you fill out the FAFSA to qualify.

• You can apply for the FAFSA online.
• Round up all the documents and information you’ll need before starting your application. This includes your personal and financial information (typically your parents’ info, too) like your Social Security number, proof of income, tax forms, and more.

• List every school that you plan to apply to on your FAFSA, so that those schools have the information they need to determine how much financial aid they can offer you.

Apply for grants and scholarships

Scholarships and grants are a great way to pay for college as you don’t have to pay anything back (assuming you maintain any eligibility requirements, such as full-time enrollment). There are a variety of different scholarships and grants available, but it’s important to apply as soon as possible.

When are scholarship and grant applications due?

Scholarships and grants are self-serve — it’s up to you to research and apply for individual awards with different deadlines. Although many scholarship applications are due in January, deadlines for grants and scholarships can fall in any month of the year.

Some scholarships and grants may require that you apply at least a year before the start of the academic year, so it’s a good idea to start looking while you’re still a junior. Here’s a good place to start looking for scholarships.

Read More: How to Find and Apply for College Grants

What can you use scholarship awards and grants for?

This is up to the government, school, or organization that provides it. Some awards will be provided to your school to help you pay tuition, fees, and other expenses. Other scholarships and grants will be paid directly to you, and you might be able to use the money for living expenses.

Applying to college

After filing your FAFSA, it’s time to fill out college applications. Each school has its own deadline for applying, typically around Jan. 1 of your senior year.

It’s important to apply to more than one college, so you can compare several schools that are willing to admit you. Keep in mind that each application will cost you time and money — around $50, on average.

Here are some more tips for applying to college, and the pros and cons of applying for an early decision admission.

What happens if you miss an application deadline?

There are plenty of colleges that accept applications after Jan. 1. Check with any schools that you’re interested in attending as some schools might have openings that they’re eager to fill, and will accept late applications.

Review your financial aid award letters

Financial aid award letters arrive around the same time as admission offer letters. Assuming that you remembered to list them on your FAFSA, every college that offers to admit you should send you a financial aid award letter.

The letter should provide all the information you need to compare the net price of attendance (total cost of attendance minus any gift aid like grants or scholarships) at all the schools you’re considering.

How to compare financial aid award letters

Financial aid award letters can be difficult to compare because some schools don’t provide a total cost of attendance or make clear that loans are aid you have to repay. Here are some examples of how the letters might look and how you can compare financial aid award letters.

What is the deadline for accepting offers?

The deadline for accepting a college’s offer for fall admission and putting down a tuition deposit of $50 to $500 is typically May 1.

If you’ve applied for early decision admission, you can expect to hear whether you’ve been accepted in December. Tuition deposits for students applying for early decision admission are often due before May 1, but check with your school first.

Why you need to put down a tuition deposit

A tuition deposit secures your place at your school of choice and demonstrates your commitment to showing up. Schools need to plan ahead so that they can provide the teaching staff and accommodations each incoming class will need.

Some students will put off their final decision by paying tuition deposits to more than one school, which is considered unethical unless you’ve been waitlisted at a school.

Apply for state-based aid

Just as the federal government offers grants and loans to students in all 50 states, most states have at least one grant or scholarship available to residents — particularly those attending a college in their own state.

• State deadlines can be as early as February or March and money for these programs can run out, so apply as soon as possible.
• Filling out the FAFSA is often the first step for qualifying for these programs, but you still have to apply directly to the agency administering the financial aid program in your state. Use this map to find your agency.

Submit the FAFSA for next year

If you’re relying on federal student loans, grants, or work-study programs, you have to submit the FAFSA every year you’re in college. This is because your financial situation changes from year to year.

Fortunately, if you filled out the FAFSA the year before, you might be eligible to complete a Renewal FAFSA, an online form that pre-fills much of the information you provided the year before. To reapply, log in as a returning user and click FAFSA Renewal.

Consider private student loans

Once you’ve exhausted your federal student loan options and applied for any grants or scholarships, you may still need additional funding. When comparing, consider the interest rates, repayment terms, and fees charged by the lender. You can compare different lenders and rates through Credible.

The companies in the table below are Credible’s approved partner lenders. Whether you’re the borrower or cosigner, Credible makes it easy to compare rates from multiple private student loan providers without affecting your credit score.

Lender	Fixed Rates From (APR)	Variable Rates From (APR)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.59%+10	6.0%+10
Fixed APR: 3.59%+10 Variable APR: 6.0%+10 Min. credit score: Does not disclose Loan amount: $2,001* to $400,000 Loan terms (years): 5, 7, 10, 12, 15, 20 Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: 0.25% to 1.00% automatic payment discount, 1% cash back graduation reward Eligibility: Must be a U.S. citizen or permanent resident or DACA student enrolled at least half-time in a degree-seeking program Customer service: Email, phone Prequalified rates with a soft credit check: Yes Cosigner release: After 12 on-time principal and interest payments Loan servicer: Launch Servicing, LLC
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.99%+1	5.89%+
Fixed APR: 3.99%+1 Variable APR: 5.89%+ Min. credit score: 720 Loan amount: $1,000 to $350,000 Loan terms (years): 5, 10, 15 Loan types: Any private or federal student loan Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay, loyalty Eligibility: Available in all 50 states (international students can apply with a creditworthy U.S. citizen or permanent resident cosigner) Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 36 months Loan servicer: Firstmark Services
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.69%+2,3	5.59%+2,3
Fixed APR: 3.69%+2,3 Variable APR: 5.59%+2,3 Min. credit score: Does not disclose Loan amount: $1,000 up to cost of attendance Loan terms (years): 5, 8, 10, 15, 20 Repayment options: Full deferral, full monthly payment, fixed/flat repayment, interest only, immediate repayment, academic deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress. Customer service: Email, phone Prequalified rates with a soft credit check: Yes Cosigner release: After half of the scheduled repayment term has been completed Loan servicer: College Ave Servicing LLC Learn more about cosigner release requirements. Requesting prequalified rates on Credible is free and doesn't affect your credit score. However, applying for or closing a loan will involve a hard credit pull that impacts your credit score and closing a loan will result in costs to you.
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.24%+	5.36%+
Fixed APR: 4.24%+ 11 Variable APR: 5.36%+ 11 Loan amount: $1,000 to $99,999 annually ($180,000 aggregate limit)11 Loan terms (years): 7, 10, 1511 Repayment options: Full deferral, immediate repayment, interest-only repayment, flat/full repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: Autopay11 Eligibility: Available to borrowers in all 50 states. Must be a U.S. citizen or permanent resident. Customer service: Phone, email Prequalified rates with a soft credit check: Yes Cosigner release: After 36 months11 Loan servicer: American Education Services Min. income: $1
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.8%+8	7.77%+8
Fixed APR: 4.8%+8 Variable APR: 7.77%+8 Min. credit score: 670 Loan amount: $1,001 up to cost of attendance Loan terms (years): 5, 10, 15 Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, forbearance Fees: Late fee Discounts: Autopay, reward for on-time graduation Eligibility: Must be an Indiana resident or a U.S. citizen attending an eligible Indiana school Customer service: Email, phone, chat Prequalified rates with a soft credit check: Yes Cosigner release: After 12 months Loan servicer: American Education Services
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	5.75%+	N/A
Fixed APR: 5.75%+ Variable APR: N/A Min. credit score: 670 Loan amount: $1,500 up to cost of attendance less aid Loan terms (years): 10, 15 Repayment options: Full deferral, interest only, immediate repayment, academic deferral, forbearance Fees: None Discounts: None Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress. Customer service: Email, phone Prequalified rates with a soft credit check: Yes Cosigner release: After 48 months Loan servicer: American Education Services (AES)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.590%9 - 15.49%9	5.54%9 - 15.70%9
Fixed APR: 3.590%9 - 15.49%9 Variable APR: 5.54%9 - 15.70%9 Min. credit score: Does not disclose Loan amount: $1,000 up to 100% of school-certified cost of attendance Loan terms (years): 10 to 209 Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, forbearance, loans discharged upon death or disability Fees: Late fee, non-sufficient funds (NSF) fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident. Also available to non-U.S. citizen students (including DACA students) attending a school located in the U.S. who apply with a qualifying cosigner. Customer service: Phone, chat Prequalified rates with a soft credit check: Yes Cosigner release: Borrowers can apply after graduation, 12 consecutive on-time principal and interest payments, and meeting certain credit requirements. Loan servicer: Sallie Mae
Compare Prequalified Private Student Loan rates. Compare Private Loans Now Trustpilot
Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available. Prequalified rates are not an offer of credit. | 10Ascent Disclosures | 1Citizens Bank Disclosures | 2,3College Ave Disclosures | 11Custom Choice Disclosures |  7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures

Learn More:

• How to Pay for College With No Money Saved
• How To Get In-State Tuition for College

How to pay for college while in school

Once you’ve made your final decision and placed your tuition deposit, you’ll need to start thinking about how you’re going to pay for college while in school. You can get a part-time job or work-study opportunity to pay for classes, as well as taking out private student loans for any gaps in funding, such as living expenses.

Find a job or work-study opportunity

To help cover college costs, you have many choices like work-study programs, on-campus jobs, paid internships, and other off-campus options. Here are some of your best options for jobs while in school.

Research loan repayment plans

Most federal student loans and private loans provide a 6-month “grace period” after you leave school before you have to start making monthly payments.

• If you have federal direct subsidized loans, interest doesn’t start racking up until after your grace period has ended.
• With any other type of loan, interest starts accruing as soon as you take your loans out. So starting repayment as soon as you can will help you pay off your student loans faster.

What are the different repayment options?

There are many options for repaying federal student loans, ranging from the standard 10-year repayment plan to extended or income-driven repayment plans.

If you have private student loans, you picked a repayment plan when you took out your loan. If you decided to defer or make partial payments while in school, your monthly payment might increase. Many borrowers choose to refinance their student loans at lower rates after graduation.

What if you can’t afford your monthly payments?

If you’re having trouble making the monthly payments on federal student loans, income-driven repayment plans can make your payments more manageable by stretching them out over a longer period of time. Income-driven repayment plans might provide loan forgiveness if you haven’t paid off your loan after 10, 20, or 25 years.

You might be able to lower your monthly payments on your student loans by extending your repayment term. Just remember that any repayment plan that stretches out your monthly payments over a longer period of time without an interest rate reduction might increase your total repayment costs.

Check Out: How to Prepare to Pay Back Your Student Loans

Jared Hughes and Jamie Young have contributed to the reporting of this article. 

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