Still figuring out how to pay for college? From university scholarships to federal loan programs, here are the most common types of financial aid for undergraduate students.
1. Apply for a Scholarship
Scholarships are typically merit-based. They consider your grades, talent or service. Best of all, you don't have to pay them back.
- University scholarships: Universities earmark scholarship dollars every year for undergraduates. At Saint Louis University, the most coveted award is the Presidential Scholarship — tuition paid in full for four years.
- Private Scholarships: How else can you get a scholarship for college? Some trusted resources include Fastweb, College Board, Sallie Maeor the Scholarship Foundation of St. Louis. A private scholarship might affect the rest of your financial aid package, so notify your university's office of financial services if you're awarded one.
Explore SLU Scholarships
2. Apply for a College Grant
College grants are need-based, and like scholarships, grants don't have to be repaid. So what's the difference between a grant and scholarship? College grants for undergraduates are provided by nonprofit organizations — often the federal and state governments — and are often tax-exempt.
The Federal Pell Grant is the most common at Saint Louis University. It offers undergraduate students a maximum of $6,895 in 2022-2023. What other grants are available? The Supplemental Educational Opportunity Grant (SEOG) is for undergraduate students with exceptional financial need. In Missouri, look into the Access Missouri Grant. And at Saint Louis University, grants are awarded annually to full-time students with financial need through grant programs through the SLU Grant.
3. College Work Study
Work study is a form of federal financial aid that allows undergraduates to earn money for college through a part-time job on campus. Students get a biweekly paycheck working an average of 15 hours a week. At SLU, students can start applying for work study jobs as soon as June 1.
Learn More About Work Study
4. Federal Student Loans
The bad news: federal student loans have to be repaid. But you don't have to begin immediately after you graduate college, and most student loans are low-interest. The Perkins Loan and the subsidized Direct Loan, offered by the federal government, are the best student loans for undergraduates, followed by the unsubsidized Federal Direct Loan.
5. Private Student Loans
Private student loans are not federally funded and often have variable interest rates that aren't capped. Translation: Explore other college financial aid options first. If you do pursue this route, look into a Parent PLUS loan or an alternative loan in your own name. Remember to spend wisely. To determine how much you can afford borrow for college, visit finaid.org/calculators.
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FAQs
Grants, work-study, loans, and scholarships help make college or career school affordable.
What is the best method to pay for college? ›
Here are the six best ways to pay for college that might be relevant to you and your family.
- 529 College Savings Plans. Families can save for future college costs using a 529 plan. ...
- Federal Financial Aid. ...
- Grants and Scholarships. ...
- Cash From Savings and Work. ...
- Work During School. ...
- Private Loans.
- Fill out and submit the FAFSA. ...
- Search for scholarships. ...
- Choose an affordable school. ...
- Use grants if you qualify. ...
- Get a work-study job. ...
- Work for an employer that pays for college. ...
- Take out federal loans if you have to.
Grants, work-study, loans, and scholarships help make college or career school affordable.
What is the best way to borrow money for college? ›
For most students and families who decide to borrow, federal student loans are the best option. Repayment on federal student loans doesn't start until after you leave school, and with fixed interest rates and payment plans, monthly payments can be manageable.
How do people actually pay for college? ›
In the 2023 Sallie Mae and Ipsos survey: 72% of families surveyed reported using parental income and savings to pay for college. 58% said they used a parent's current income to pay for college. 30% relied on funds saved in a college savings account, like a 529 plan, to pay for school.
What is the best way to pay for college 5 points a federal student loans b scholarships c work-study d credit cards? ›
The best ways to pay for college include federal student loans, scholarships, and work-study programs. Federal student loans are loans provided by the government that offer low interest rates and flexible repayment options.
How to maximize FAFSA aid? ›
Basic Principles
- Reducing income during the base years.
- Reducing “included” assets. ...
- Increasing the number of family members enrolled in college and pursuing a degree or certificate at the same time.
A college 529 savings plan offers a tax-advantaged way to pay for college. Many schools offer tuition payment plans that allow you to make monthly payments for college. Federal and Private loans are designed to help you pay college expenses not covered by Financial Aid or savings.
When it comes to paying for college, your best option is? ›
Scholarships are an excellent way to pay for college without the burden of repayment. Free money will always be at the top of the list when looking for the best ways to pay for college. Researching scholarships should be at the top of your college to-do list. There are many scholarships, and not all are merit-based.
Look for scholarship resources that are available from your state government or from statewide organizations with which you may have been involved. Research companies in your state that are related to your planned field of study. National scholarships can be more competitive, but don't let that keep you from applying.
How does financial aid work for college? ›
The amount of aid offered can range from zero to the full cost of attending college. It will be broken down into three categories: free money you don't have to pay back, earned money (via work-study or non-work study), and borrowed money (either from federal or private student loans).
Do you pay back financial aid? ›
You are generally required to repay your student loan, but in certain situations, your loan may be forgiven, canceled, or discharged.
Which loan is better financially for a student? ›
A subsidized loan is your best option. With these loans, the federal government pays the interest charges for you while you're in college.
What is the best repayment plan for college loans? ›
Best repayment option: standard repayment. On the standard student loan repayment plan, you make equal monthly payments for 10 years. If you can afford the standard plan, you'll pay less in interest and pay off your loans faster than you would on other federal repayment plans.
How can I pay for college without my parents helping? ›
8 Tips for paying for college on your own
- Plan ahead. ...
- Consider all your post-secondary education options. ...
- Use your personal savings and income for college. ...
- Apply for scholarships. ...
- Apply for financial aid. ...
- Compare and evaluate your financial aid offers. ...
- After savings and free money, consider student loans.
Financial aid can come from federal and state governments, colleges, and private organizations. Some help comes in the form of loans, which have to be paid back. Grants, scholarships and work-study programs do not have to be repaid. Broadly, there are two types of financial aid: need-based and merit.
Is it better to pay for college without loans? ›
Grants, not student loans, are arguably the best way to pay for college education expenses. Unlike loans, grants don't need to be paid back and are therefore an excellent source of funding for college.
