No matter where you are on your educational journey, this roadmap can help you overcome barriers that may discourage you from accessing or completing your academic program.
Gail daMota
President, Education Finance Council
Navigating the college admissions process and figuring out how to pay for it can feel daunting. College is expensive, and not just because of tuition and fees; students must also figure out how to pay for books, food, and other living expenses.
No matter where you are on your educational journey, this article provides a roadmap to overcome financial barriers that may otherwise discourage you from accessing or completing your academic program.
Save a few dollars from every paycheck
Research shows that students from low- and moderate-income backgrounds with savings greater than $500 were five times more likely than their peers to graduate from college. Even if these students had fewer than $500 set aside for college, they were still more than four times as likely to graduate compared to a similarly situated friend with no savings.
The data is clear: Put a few dollars in a high-yield savings account or 529 plan now to use for college expenses later.
File the free application for Federal Student Aid (FAFSA)
The FAFSA is your ticket to financial assistance from the U.S. Department of Education, and it helps states and institutions determine your eligibility for grant and scholarship programs. Combined, the Department of Education, states, and colleges gave over $125 billion to students in the 2023-24 award year.
You may have heard that the FAFSA is complicated, and it is true that the government requests a lot of information from applicants. However, thanks to some recent changes, the FAFSA is now easier to complete. If you need help, college planning organizations in your state can help you free of charge.
One association estimated that the graduating high school class of 2023 missed out on over $4 billion in Pell Grants by not submitting a FAFSA. Don’t pass up free money. File a FAFSA.
Consider low-cost student loan options
Scholarships and grants alone may not be enough to cover all your expenses. About 75% of college students still have unmet needs after accounting for free aid. Even still, these students have some options. They could try to cut back on certain budget items, find work that accommodates their studying schedule, or take out a loan to make up the difference.
Student loans are often the best option, but not all student loans are the same. The Department of Education’s federal Stafford student loans typically have the lowest interest rates, best forgiveness programs, and most flexible repayment options.
If you still need to fill the gap after federal Stafford loans, consider borrowing from a nonprofit or state-based organization. These mission-driven organizations follow a set of guiding principles that affirm their commitment to the consumer, not a shareholder.
You can get help to overcome financial barriers to higher education by working with state-based, nonprofit higher education finance organizations and taking small steps today. College is an investment in your future. With persistence and the right resources, you can achieve your educational goals.
