What are the (best) financial options for paying for college?

Madeline,
This is an excellent question and please know that I too wondered the same thing when I started college many centuries ago. I hope that I can provide you some really good information that you can use to help you through your process. I hope this does not overwhelm you and if you have any question, just reach out I am happy to help. I wish I had someone break down this stuff for more I probably would have been faced with less debt and more knowledge in picking and choosing where to go to school.

There are several things that one must consider when making a decision to go to college. When it comes to money, I think most everyone wants to ensure that they have a good return on investment. I know I hate to sound all business like, but you want to ensure that you are getting an education that will work for you especially given the price for education out there today. Here are some things to consider when looking into schools before reviewing costs.

1. 
   

   Accreditation – When you are shopping around the countless opportunities for education, you want to make sure that the college(s) that you choose are accredited. Now you will likely be encountered with several different types of accreditation that include regional, national, national faith-based, and programmatic accreditations. One is not necessarily better than the other, but a good place to start would be regional. Think of accreditation as a certification of sorts, where a school that carries a regional accreditation with one of the following accrediting bodies has met the rigorous standards set forth by these organizations with regard to its academics and program offerings. There are six regional accrediting bodies in the United States and here are the following: (I will provide you some research tools at the and you can always reach out and let me know more of your questions):
   a. Accrediting Commission for Community and Junior Colleges, Western Association of Schools and Colleges (ACCJC-WASC)
   b. Middle States Commission on Higher Education (MSCHE)
   c. Higher Learning Commission (HLC)
   d. New England Association of Schools and Colleges, Commission on Institutions of Higher Education (NEASC-CIHE)
   e. Southern Association of Colleges and Schools, Commission on Colleges (SACSCOC)
   f. WASC Senior College and University Commission (WSCUC)

   
   


2. 
   

   Community Colleges – I think that this is a great idea for students fresh from high school. The costs are generally much lower than that of a four-year. Furthermore, smaller classroom size means you have more one on one attention. I know you mentioned that you have some difficulties with math and science, but you have a sincere passion for something within the medical field. I am not sure what route you plan to take, but it may be most beneficial for you to consider this option so you can develop those skills you feel a bit shaky on. Also, do not be discouraged; math and science were my worst subjects in high school, but I blossomed in a community college environment. Although I did not go into the medical profession I am pretty proficient in statistical analysis and I have my college algebra teacher Mrs. Bayes to thank. Without her, I would have probably been lost in advance math classes…it was due to the small classroom size and individual attention that I was able to prosper. What I would say is that if you decide to utilize this option to help cut costs significantly research the community colleges you are interested in and ask them about the following:
   a. Articulation Agreements – An articulation agreement is a documented agreement between one or more colleges and outline transfer policies and processes from one program at say, the community college to another university that typically has a four-year program offering (bachelor’s degree). You can talk to any community college counselor that should have more working knowledge on the articulation agreements that exist. Feel free to reach out to me to I will do what I can to help.

   
   

I could go on and on with suggestions, but I know the basis of your question was funding, how to pay for it, and where to find more information. I hope you find this useful as well and reach out with your questions.
Now the hard-core stuff: All about paying for school –

1. the federal grants, federal loans, and private loans and that private loans have higher interest rates.

Federal grants and loans are pretty typical for students, but did you know there is an actual aggregate loan limit for how much you can borrow for your undergraduate education? If you choose to utilize financial aid which is also known formally as the Title IV program, students obtaining an undergraduate education may not exceed a total loan amount of $57,500 in his or her undergraduate education.

In addition, students may not borrow the entire $57,500 all at once to pay for all of his or her education. In the world of financial aid, students are awarded based on academic years that make up a certain number of courses in a year. This varies and your financial aid department of your school of your choosing can help break down things a little better for you. However, another way that students are awarded in undergraduate programs is based on dependency status. In order to find out your dependency status you will likely need to fill out your FAFSA which is also known as your Free Application for Student Aid (www.fafsa.ed.gov).

If you are a dependent student the following amounts are what you may be eligible for each year (again, status of dependency can be answered by filling out the FAFSA…if you are graduating in May of 2016 you will likely need to fill out the 2016-2017 FAFSA for next school year that will be set to begin in late August early September. You would need your taxes (if that is applicable and you are required to file) and your parents’ taxes (if they file separately I believe you would need both of them). Nonetheless, I can always assist with your questions just reach out.

1st year dependent student max loan limit for the academic year - $5500.00
2nd year dependent student max loan limit for the academic year $6500.00
3rd year and beyond dependent student max loan limit for the academic year $7500.00

For an independent student it is the following:
1st year independent student max loan limit for the academic year - $9500.00
2nd year independent student max loan limit for the academic year $10500.00
3rd year and beyond independent student max loan limit for the academic year $12500.00

Interest Rate and Fees

Generally speaking, there are two types of fees that students are aware of when they are borrowing for his or her education. One, you have interest for your loan and two you have origination fees from the service (e.g. – Navient) – I can explain what services are in a later post.

For direct loans the current interest rate for loans that are disbursed between 7/1/2015 and 06/30/2016 for undergraduate students is 4.29%. The origination fees for these loans is slightly above 1% of the total loan balance. So in example, let’s say you are a dependent student, first year in college, and you are utilizing the financial aid direct loans program. Well when your loan is sent for disbursement you will have what they call a gross award amount which if we look at the information above would be $5500.00, but you will be given a net award amount of about 5445.00 because they took out the 55.00 of origination fees (5500.00 x 1%) = 5445.00. The 5445.00 is what you would have to pay for courses for the academic year. Does this make sense?

I know that this may have been overwhelming and I have more information to provide you, but do not want to overwhelm you. I am happy to help if you have any questions. You may need to take some time and do some more additional research, but I have seven years of experience working with undergraduate, graduate, and doctorate students as well as years of financial aid, student advising, and admissions experience. Let me know what I can do to help make your college goals a reality. If I do not have the answer I will be happy to do some research for you. I hope that you found this post really helpful.

Thanks for giving me the opportunity to help,

William Hodde
Passionate Scholar and Education Professional

Hi Madeline, great question. Congratulations on getting accepted Early Decision. You have received a lot of great advice so far. There are a lot of options out there from Financial Aid, Grants and Scholarships. There are many websites now that aggregate scholarships for you based on criteria that is specific to you. A Google search will easily pull up several of these sites. There are hundreds of scholarships out there that are not even applied for.

Here are two things that helped me:
1. After I was accepted into undergrad, I called my school's financial aid office and asked them if there was anything else they could do. It was literally a 10 minute call and they found an additional $1,000/semester. Every bit helps.

1. Starting my sophomore year, I became an RA (Resident Assistant). Most schools have RA's that live on each floor or each wing of a residence hall. Not only is it typically one of the best paying jobs in college (many will cover the cost of tuition and some may even cover all or part of room and board) but it is a great leadership opportunity. As a RA, you will gain leadership skills such as communication, event planning, and time management. It is not for everyone but an option to keep in minds.

As far as work study goes, they are not all equal. Try to keep in mind some of the benefits they might have such as free time to study. You essentially have a job on campus such as in the library, in the dining hall or working with a professor in a department. Look around to see what is available and what the time commitment is. My freshman year I worked in the dining hall. It was very busy but I did save on my dining plan as I was able to eat for free while working. My roommate worked an early shift in Writing Center and since mornings were very slow, he was able to get all of his homework done while being paid.

Madeline, I am so sorry that it has taken me this long to get back to you. I have been caught up with starting my new term for class and preparing for visitors this next weekend. Nonetheless, you are so very welcome...I wish I would have gotten this information from someone when I started school ions ago.

First, know that the United States government is the one that decides how much funding you are approved for, for an academic year. Secondly, schools that participate in the Title IV program (financial aid) are required by law to provide a total cost to its prospective and current student body on the amount it costs to take coursework and earn a degree from the institution. These outlined costs are formally known as COA which stands for cost of attendance.

Generally, when looking at costs you have two fundamental components (indirect and direct costs). Think of direct costs as though you would see directly on your ledger if you attend a university (tuition, fees) and indirect costs would be those costs that you do not see directly billed to your university ledger (room and board, books and supplies). So...what I would recommend you do is conducting some research on the schools you are interested in and then reach out to each schools financial aid office. Talk to a representative about the COA to attend and what financial aid options are available.

Remember that financial aid is more than just loans and it includes scholarships and grants. Under the Title IV (financial aid) program there are loans and there are grants. I went over the loan portion, but when you fill out the FAFSA you are provided what they call an expected family contribution number which is an extensive calculation the government has created to determine students eligibility for different financial aid options. Types of grants that are found under the Title IV program include the Pell Grant and types of state grants as well. If you ever have questions related to your application for student aid you can contact the Federal Student Aid Information Center (look the number up online I do not have it in front of me at the moment, it is in my office). Representatives can address many of your questions.

Regardless, I would say that you should do some research on your options when it comes to college expense. Have a budget and do not waiver from that....everyone has a price tag. If you want to get a range of costs for different types of schools check out the College Scorecard at (https://collegescorecard.ed.gov/) and for budgeting use the Net Price Calculator (http://collegecost.ed.gov/netpricecenter.aspx). The Net Price Calculator is a good tool when you are finalizing your options...it can help you budget.

I know this may be all so confusing and believe me it can be overwhelming so take it one step at a time and reach out with anymore questions. I hope that you are doing well Madeline and do not get overwhelmed, always here to help and guide.

All the best,

Will

Madeline,

I would visit www.saltmoney.org. They have a number of resources to help you understand the financing of college. Hope this helps.

Best,

Tom

There are many options, and the best one may be best for you, but not best for someone else. A good place to start would be to go your local community college, as they can provide a good education without having to accumulate large education debt and they many times offer special programs that can be tailored to your special situation. Everyone has a situation that is somewhat different. Also, community colleges can provide such programs as coop, internship, and shadowing that are priceless and can ease your entry into employment after attaining your education. It would help me to help you further if you were to provide more pertinent information about your situation and your aspirations. Good luck! Looking forward to hearing further.