Last minute financing
Don’t panic yet. Even if you haven’t pre-funded a
college education or if you don’t receive enough financial aid
and/or scholarships to cover a college education, there are
other ways to help finance college and defray the costs.
Choose an in-state college
Not only can in-state schools reduce the cost of housing (if the school is the same city as
the parents’ house), but in-state tuition is often two to three times less than the cost of
tuition for non-resident or out-of-state students. This difference is mostly because
state governments often help fund their colleges in order to reduce education costs for
resident students.
Get a part-time job
Part-time jobs can help a student pay for college. Not only does this contribution
help many students to better appreciate their education, but some students even enjoy
greater academic success. A part-time job can leave the student with less time to
"hang out" or party. It is possible for students to find jobs before they move to a
campus area. Contact your school’s career center or student employment office before
classes begin. Many colleges are able to place students in jobs which are related to
particular fields of study. Some employers can help students earn credit through work
experience. Many on-campus jobs are available to students who do not qualify for
work-study.
Earn extra credit
It is possible to reduce the amount of credits that a student may need in order to
graduate. Many colleges have tests which can allow good students to skip some
required introductory courses. Internship programs allow many students to earn upper
division credit while collecting a stipend or even earning regular pay. If a student
took advanced placement or honors courses in high school, the college may apply credit for
similar college classes. Internships and cooperative work-experience programs are
great ways to earn credit while not having to pay for the cost of the related courses.
Another way to save money may be to reexamine the number of credits taken each term.
Many schools offer discounts for taking credits above the minimum full-time requirement.
For example, many quarter-based schools charge little or no difference between taking 12
credit hours and 18 credit hours. Many schools offer reduced rates for taking classes
during the summer. Not only can a student graduate much sooner, but the total cost of
attendance can be greatly reduced.
Shop for discounts
Always compare tuition costs between schools which provide programs of equal quality.
In addition to comparing costs, be sure to ask about possible tuition discounts.
There are various reasons for discounts, which are not uncommon. For example,
discounts may include the following: students above a certain age, returning students,
children of alumni, or students from a particular background. Make sure to ask your
financial aid counselor.
Start at a two-year college
Reconsider the colleges to which you have applied. If a student has higher academic
ranking at a less prestigious school, there will generally be more financial aid and/or
scholarships available. Consider going to community college for the first two years
of a four-year degree. Keep in mind that transferring from a community college can make it
harder to enter the most prestigious schools (unless a student earns top grades).
However, most four-year colleges will apply community college credits towards completion of
a four-year degree. Community colleges are substantially less expensive than four-year
colleges.
Talk to an armed services recruiter
Military service is an excellent way to
pay for part—or even all—of a college education. The Army National Guard will cover much of
your federal loans, plus pay a small monthly stipend, for students who agree to serve a
specified amount of time in weekend and summer training. Well over 2,000 colleges
offer Reserve Officer Training Corps (ROTC) scholarships. The Army, Navy and Air Force
sponsor ROTC scholarships that completely cover the cost of tuition, fees and books.
There is also a small monthly stipend. In return, students serve eight years in
active or reserve duty after graduation. Recently, competition for ROTC scholarships
has begun to grow. There are other armed services’ education opportunities available.
For more information, contact your local recruiter’s office or the department of military
science at your college.
Other loan options
Due to circumstance or delayed financial aid application, many students are not able to get
subsidized loans. Many students who qualify for subsidized loans may require
additional sources of funding. Talk to your college Financial Aid office about other
public and private loan programs that might be worth consideration. Most colleges
offer their own extended tuition payment plans or "emergency loans" for small amounts.
It is rarely possible to extend tuition payment plans and emergency loans beyond an
academic term, so here are some longer repayment options:
Bank education loans
Some banks offer their own educational loans. Notable examples include EXCEL and
SHARE loans; however, such loans do not always offer as competitive rates, or deferrals, as
other educational loans programs. Also, the guidelines for application may be much
stricter than the various guaranteed loans. Like other education loans, bank loans
are not tax-deductible; therefore, consider bank education loans only if you’re not able to
secure a tax-deductible home equity or mortgage loan.
College-funded loans
Many colleges can fund their own loans. This
means that you can apply directly to some colleges for loans that will cover as much as the
full cost of a four-year education. Some schools will also allow students to lock
future costs at the rate of tuition when the student begins. Because schools can
raise the cost of tuition from year to year (in a few instances as high as a 10% increase),
it’s a great idea to lock in current prices and open a line of credit to cover up to four
years of expenses.
State education loans
You may want to ask your high school guidance counselor, or a staff member at the college(s)
you are considering, about state-funded education loans. In addition to the more
common federal education loans, roughly 20 states offer their own low-cost higher education
loans.
Take out a mortgage or home equity loan
Current tax laws leave very little room to deduct the costs of higher education. On
the other hand, the interest paid on mortgages, home equity loans, and home equity lines of
credit, is tax-deductible. Talk to your accountant about the details, but this is an
excellent way to fund a child’s education. This does put your home up for collateral,
so make sure your child is willing to apply him or herself and that you will be disciplined
in paying back the loan. Shop around for the best rates, but check with Northwest
Community Credit Union for our current rates
on home equity loans,
mortgage loans,
home equity VISA cards, and
lines of credit.