By Harriette Halepis, Debt.com Financial Fitness Trainer
Attending college or university is expensive. While you can’t lower tuition rates, you can find ways to pay for college expenses without taking out student loans. Scholarships and grants are both available to all students. The trick is to find a scholarship or grant that fits your current situation.
Unlike a student loan, you do not have to pay back any portion of most scholarships and grants. This is a far better option than a student loan, which requires students to pay monthly loan installments upon graduation.
Scholarship Options
Far too many students are under the impression that scholarships are exclusive. This couldn’t be farther from the truth. Scholarships of all kinds exist, and exploring these options is a wise move. Apply for as many scholarships as you can, and then look for scholarships that are slightly out of the ordinary.
You may be just the candidate that some scholarship boards are looking for. From left-handed scholarships to scholarships offered for those who study paranormal activity, plenty of money is just waiting to be claimed.
Grant Considerations
Grants are similar to scholarships. Unlike most scholarships, grants are usually given to individuals by a non-profit organization. Depending on the country that you currently live in, you may find an array of government grants available. Some grants require that students send a formal report to a grant committee throughout any given school year.
Other grants do not require further communication between a student and a grant board. While most grants are given as gifts, it’s important to read all the fine print that comes with a grant. You may find that some grants come with a large list of things that you’ll have to do in order to keep a grant.
Creating a Budget
In the event that a grant or scholarship is not an option, you can obtain a small student loan. Calculate a loan amount by adding tuition costs, book expenses, and personal monies together. If you aren’t sure about these costs, ask your school’s financial aid department for an estimate (this information is usually readily available).
Even though you may be eligible for a large student loan, it’s best not to take as much money as you can from a lender. Otherwise, you may be battling student loan debt for years (even decades) after you graduate. Using student loan money as a last resort is the best way to pay for college.