by Emily Hechler 
No matter if you’re in the middle of a semester or waiting to start taking classes until next spring, someone needs to pay for your tuition and fees. One way to help relieve an immediate financial burden is to apply for a student loan. As the name implies, a student loan requires borrowing money from the government or a third-party to pay for your education now, and then you pay the loan back later.
How do you know if you even need a student loan? Before taking out a student loan, consider these alternatives to student loans.
- Grants. This type of aid is free money to you! Students are eligible for grants based on criteria that vary across grants. They all have one thing in common. Grants are awarded based on financial need. If you’re in a tough position financially, your application will note that, and that can boost you in the running for receiving a grant. Money given through grants does not have to be paid back to anyone.
- Scholarships. Scholarships are similar to grants because the recipient doesn’t have to pay the money back. More free money! The main difference is that scholarships are usually academically or athletically based. Scholarships can be awarded for meeting a certain high school or college GPA, or being part of a specific academic program. Colleges and third-party organization.
- Work-study. These programs allow students to work specific part-time jobs on campus. Instead of receiving a paycheck, the money you make for working goes directly to your tuition costs. Work-study programs are great opportunities for students who do not have a car to commute to work.
Your financial eligibility for grants and student loans are based on the information you provide through the FAFSA. The Free Application for Federal Student Aid considers your tax returns, checking account balance, and savings account balance. It also considers your parents’ financial information if they claimed you as a dependent when filing their taxes last season.
The deadline for submitting your FAFSA is usually at the end of June. If you want some kind of federal aid for the 2025-26 school year, submit your application by June 30, 2025. However, your college may require your FAFSA results sooner. My college required the FAFSA to be submitted by the end of January each year. Take a look at your college’s deadline so you don’t miss out on getting free college money!
Unfortunately, if you’ve been saving some money over time and continue earning money that you want to use to pay for your college, that means there is likely more money in your bank accounts. This can negatively impact your eligibility to receive a grant.
If you have made it through the alternatives and don’t have enough funds to pay for your semester, you might need a student loan. Fortunately, even if you aren’t eligible for grants as determined by your FAFSA, you can still be eligible for a federal student loan.
If you take out a federal student loan, you don’t start paying back your loan and interest until after you graduate. This means you can spend less time working a job to pay the balance while you are in the thick of your college journey and more time focusing on your education and the friendships you’ll make along the way.
A federal student loan isn’t the only option. Private student loans through third-party organizations also exist. Your timeline and interest rates will vary depending on which provider you choose.
If you want to consider another loan option, look into a personal loan from Alltru. With loans up to $20,000 and a variety of payment terms. If you are in your last year of college and would rather pay a little as you go and a little after you graduate, this is a great option. With a personal loan, we can walk you through a fast and easy application and approval process.
You can also use a personal loan from Alltru to consolidate your existing loans into one, larger loan. This way, you are only making one monthly payment instead of several smaller payments. This can also help reduce the overall interest you pay, which will save you money in the long run.
Whatever your financial situation, we are here to help you make the best decisions for you now, and for future college-grad you too.
