For anyone who's been looking into colleges, it will come as no surprise that college costs are rising... and rising, and rising some more, to somewhat shocking levels. In light of this fact, I'd like to take this opportunity to add to the information and suggestions from past posts regarding financial aid.
If you've read my previous posts, you might have noticed that I strongly advocate looking beyond California (or whatever your home state is), and beyond public institutions to expand your choices. There are over 4,000 colleges and universities in the United States, and each one has a unique way of calculating costs and financial aid awards. The most important consideration in choosing a college is not the location, the degree programs they offer, the cost.... all of those things are important, but the most important consideration is the fit - how well does the college fit the needs, interests, and unique talents of the student. Cost is, of course, one factor in that fit, and in many cases a major factor. You don't want to get through your dream education just to find yourself shackled to crippling debt for a major portion of the rest of your life. In some cases, it might make financial sense to stay in your home state, in other cases, it might be more affordable to go out of state. A lot of this depends on the aid offered by your state, and whether or not you qualify for that aid.
But first, a note on community colleges. I work with high school students, and often hear "I have to go to a community college because I can't afford to go to a 4-year university." I want to start by saying there is nothing wrong with beginning your education at a community college - it is a great choice for many students. However, it breaks my heart when a student is choosing this option even though it is clearly not their preference, simply because they feel they have no choice. Especially when the student is not planning to live at home, in which case (depending on the family's financial situation) it might not be any less expensive to attend a community college.
OK, enough intro - now let's get down to how to keep college costs under control. Most of the rest of this is focused on California residents - if you are not a resident of California, or choose to attend a school outside of California, skip to "Non-California Residents or attending school out of state" below.
California residents
If you are a California resident, and your family income falls in the low to moderate range, you may be eligible for a Cal Grant that will pay tuition and fees at any California public college or university, and some private schools as well (up to certain limits). There are three types of Cal Grants:
- Cal Grant A: Covers tuition and fees at CSU (up to $5970) and UC (up to $12,192) schools. This means you could go to Humboldt State or UC Santa Cruz, and not have to worry about tuition and fees. You still will need to come up with money to cover living expenses, books, transportation, and personal expenses.
- Cal Grant B: For very low-income students, will provide up to $1,473 for books and living expenses. After Freshman year, it also covers tuition and fees at the same levels as Cal Grant A.
- Cal Grant C: Pays tuition and training costs at occupational and career-technical schools
More information on Cal Grants can be found on the Cal Grants website.
What if you want to start at a community college? How does that affect your Cal Grant?
- Cal Grant A: Your award will be held in reserve for up to two years until you transfer to a 4-year college. As a Cal Grant recipient, community college fees will be waived. Be warned, though, many students take more than 2 years to transfer from a community college - make sure to speak with a counselor early and often at your community college to make sure you are on track to transfer within two years.
- Cal Grant B: You can use the $1,473 living allowance to pay for books and other expenses at the community college, but you will use up some of your Cal Grant eligibility. You are probably better off deferring your Cal Grant until you transfer to a 4-year university
- Cal Grant C: will pay for expenses for technical, career-training programs at some community colleges.
- If you do not initially receive a Cal Grant, or if it takes more than 2 years to transfer, you can also apply for the Cal Grant again when you transfer to a 4-year university.
To apply for the Cal Grant, complete the FAFSA (Free Application for Federal Student Aid) before the March 2 deadline.
In addition to the Cal Grant, some schools have developed their own ways to make college affordable for California residents. For example, the Blue and Gold program at UC Davis guarantees gift aid to cover tuition and fees for all California residents with a family income under $80,000, assuming they have financial need (based on the FAFSA, which will generally be the case as long as the family does not have an exorbitant amount of assets). To qualify, you need to complete the FAFSA by the March 2 deadline.
Non-California residents or students attending schools out of state
This advice actually applies to all students, whether California residents or not:
- Complete the FAFSA early. Some schools award available financial aid funds based on the date of application - first applied, first served.
- Apply for all scholarships and grants you are eligible for - some may be only for $500 or $1,000, but they can add up to a big chunk of aid, and help reduce the amount you need to borrow. Ask the guidance counselor at your school for suggestions on local scholarships. The applicant pool is smaller and you may have a better chance at getting them. If your counselor doesn't have a list, check out the websites of other high schools near you - many of the scholarships listed there are probably open to you as well.
- Look into inter-state agreements and tuition exchange programs (see my previous post on the Western Undergraduate Exchange). If the cost of living is high where you live (e.g. California or New York), you may find it more affordable to attend an out-of-state school that participates in this sort of inter-state exchange program.
- Look at the financial aid/scholarship page for the schools you are applying to. Many schools have their own in-house source of grants and scholarships. Some require a separate application. Check into school-based scholarships as soon as you decide you want to apply to the school - deadlines vary and some are fairly early.
- Don't discount private schools. Many people panic when they see the advertised cost of some private schools. In fact, you won't know what it will actually cost YOU until you complete the financial aid application process and see your award letter. Because some private schools have more gift aid available, it may actually cost less out-of-pocket to go to that expensive private school than it would to go to the "cheaper" public university.
- If you are considering a career in the military, look into ROTC scholarships. The Army, Navy, and Air Force all offer ROTC scholarships in certain academic fields. The scholarship requires participation in the school's ROTC program (so, of course, they are only available at schools with the appropriate ROTC program), and a commitment to active duty (usually 4 or 5 years) after graduation, followed by several years in the military reserve. Only pursue this if you have a true interest in serving in the military - not just to get money for school. By taking this scholarship, you are making a serious commitment to military service - make sure you are ready for that commitment before you apply.
If you do have to take out loans.....
Much of your financial aid offer will probably come in the form of loans. If you are going to take out loans, be sure to take advantage of the subsidized loans first. The main difference between subsidized and unsubsidized loans:
- Subsidized loans generally have a lower interest rate, and do not start accruing interest until after you graduate. You do not need to start paying back the loan until you are out of school - even if you go on to graduate school after you graduate.
- Unsubsidized loans generally have a higher interest rate. Although you don't have to pay back the loan until after you are out of school, the interest DOES accrue during this deferment period, so you will find yourself owing a lot more than you borrowed.
Once you've exhausted your options with subsidized loans, I strongly suggest you look into other financing options before taking on an unsubsidized loan. Generally speaking, the terms on unsubsidized loans aren't too great, and if you do have to borrow further, you may be able to find a better deal with sources of credit you already have available.
In conclusion....
I wish I could tell you that you will probably be able to find financial aid to fully fund your college education, but I would probably be lying. A lucky few do get a full ride scholarship, or combination of gift aid that pays all expenses for college. A lucky few more have enough income and assets that they can pay their own way without any financial aid. Most students fall somewhere in the middle - they qualify for some gift aid, dip into some savings, and take out some loans. By being pro-active in your search for financial aid, applying early, applying for all scholarships you even remotely qualify for, and considering all sources of aid available in your state and at the schools you apply for, you can put yourself in a better position to make college affordable.
