by Emily Hechler 
College can be a great experience. The degree you choose can help you find a great job. The friends you make can last a lifetime. The time management skills you develop can serve you well in the future. However, a major hurdle for many is the cost of college. In addition to the physical and emotional toll it can take, college costs a lot financially.
Here’s a few examples:
- St. Louis Community College costs up to $7,620 a year in 2026.
- Harris-Stowe State University costs up to $14,250 a year in 2026.
- University of Missouri – St. Louis (UMSL) costs up to $39,510 a year in 2026.
With the cost of college so high, some may question the value of the experience. Considering people can still learn skills, pursue their interests, have a social life, and find a great job without going to college, is it worth the financial investment? After all, the demand for skilled trades jobs that don’t require a 4-year degree is projected to grow 4%-60% depending on the field.
In this guide, we’ll walk you through what need to know before college, while in college, and after you graduate college about your financial options. If you are saving for college as a high school student or wanting to go back to school with an established career, we have tips for you to make the best financial decisions for your situation.
Tips for Parents Saving for Their Kids
My husband and I are both working on graduate degrees. We paid for our undergrad education in different ways too. We want to be able to help our future kids pay for some kind of higher education. It’s never too early to start thinking about how you can help pay for your child’s college costs. Here are some steps you can take.
Start a Little at a Time
Money you save now is money you won’t have to worry about later, even if it’s a small amount. If you have room in your budget to put aside $25 or $50 every month for your child’s future education, start saving. This will add up over time and make a large impact for your child without making a large impact on your finances in the moment. If money is too tight right now to afford saving for your child’s education, contribute when you can with one-off events like birthdays, holidays, work bonuses, or a tax refund.
Open a Coverdell Education IRA
This type of account is designed to be used to only cover education expenses including tuition, books, and other materials. When you open a Coverdell Education IRA, you will list your child as the beneficiary to the money. You can contribute up to $2,000 a year tax-free into the account until your child turns 18. Then, your child can withdraw the funds until they turn 30.
Save Some Under Your Name
Money under your student’s name in a child’s checking or savings account is treated as a student asset in federal financial aid formulas. Student assets are evaluated at a higher rate. As much as 20% of that balance can count against the aid your child qualifies for. On the other hand, assets in a parent’s name are assessed at around 5.6%. This means the same amount of money can have a significantly smaller impact on financial aid if it’s held by a parent. Even simple choices, like keeping savings in your name instead of your child’s, can help preserve eligibility for grants, scholarships, and low-interest loans. Understanding these rules and planning ahead can give your student a meaningful advantage when it comes to paying for college. There are exceptions to this including if your income already disqualifies your student from receiving need-based financial aid. In addition, money your child gets from a paycheck should be kept in their own account.
Tips for High School Grads
Regardless of whether or not college is in your future, high school grads are adults, and adults have bills to pay. With the world at your fingertips, learning how to manage your finances early can benefit you greatly in short term and long run. Check out these tips to start making smart money choices.
Create a Budget
Depending on your situation, you might still live with your parents for a while after graduation. Or, you could find an apartment with roommates. Learning how to create a budget might not seem like a great use of your time if you aren’t financially independent yet. However, how you handle your money now will impact your future decisions. I felt the consequences of not making a budget for over a year after I moved out of my parents’ house. Use this template designed for college students to plan for your situation.
Build Your Credit Score
A high credit score will come with numerous benefits down the road. How do you start building your credit score from nothing? There are lots of ways you can start building your credit score once you reach age 18. Any bill you pay on time can increase your credit score. This includes your car loan, phone, rent, and utilities. Opening a credit card and paying at least the minimum balance in full each month will increase your credit score too. Any amount you don’t pay off will roll over to the next month with interest. Be careful to only use 30% of your card’s limit to get an even higher score.
Save Without Stressing
Maybe you find yourself spending most of your paycheck while waiting for the next one just because it’s there in your account. Or, you have extra money in your checking account after paying your bills and could easily save some each month. With automatic savings, you can use direct deposit to send a portion of your paycheck into your savings account instead of your checking account. You can also schedule automatic money transfers between your accounts ensuring that money is regularly moving into your savings account. With automatic saving, you can save for an emergency fund, college tuition, car down payment, or vacation. Moving money into your savings account allows it to grow interest. This means that you’ll earn money by not spending the money you already have!
Plan for Your Long-Term Future
Saving for retirement doesn’t feel urgent when you’re focused on building your career. But being young gives you a powerful advantage: time. The earlier you start, the more you can benefit from compound interest and long-term growth. Contributing to a 401(k) might feel tough if money is tight, but putting it off can cost you later. Try to save around 10% of your monthly income if you can. If your employer offers a match, take full advantage. It’s essentially free money added to your plan. If you don’t have access to a workplace retirement plan, consider opening a Roth IRA. Contributions are made after taxes, so when you withdraw funds in retirement (after age 59½), your money comes out tax-free.
Tips for Incoming College Freshmen
Congratulations! You’re headed off to college. One major aspect of your life that will continue to impact you after you graduate is money. How are you paying for college?
Some receive financial assistance from their family, as mentioned above. If your parents have promised to help pay for your college, your college will still charge you and not them. Regardless of if you are receiving financial help, here are a few ways you can financially prep for college.
Open Your Own Accounts
If you don’t have your own checking and savings accounts, now is the time to open them. Once you start working a job, that money needs to go somewhere. While this can impact the amount of money you receive in a federal financial, you are likely quickly making up this difference by working a few hours during the week. Plus, with a checking account from Alltru, you can get a debit card for easy spending and manage your account from anywhere with mobile banking.
Save with a High Yield Online Savings Account
Once you open a checking account with Alltru and start making monthly deposits, you become eligible to open a High Yield Online Savings Account. As you let money sit in this account, it will grow with a competitive interest rate and faster than a normal savings account. Since the interest grows as a percentage, the more money in your account, the more interest (free money) you’ll earn. Over the summers when you aren’t paying for college expenses, stockpile your money into this account for maximum growth.
Create a Budget
One of the perks of budgeting while in college is that your expenses can be relatively predictable for a few months at a time. You will usually find out well before your classes start how much your tuition costs, what books and materials you’ll need to purchase, how much you’ll pay for room and board, etc. Since you know how much you will need in each of these areas, you can start budgeting now so you can plan how to pay for these expenses and other everyday needs that arise while in school. Remember to use the template to make the math easy and visualize your income and expenses.
Evaluate Your Savings
If your parents opened a Coverdell Education IRA for you, the funds must be used by age 30. However, these accounts earn interest over time, so the longer the money remains invested, the more it can grow. Before making withdrawals, review how the account is performing and consider using a savings calculator to estimate how much more it can grow if you leave the money in the account instead. This kind of planning can help you decide the most effective way to cover tuition and other education expenses.
Consider a Small Student Loan
When you create your budget and evaluate your savings, you might find that you need more money to cover the costs of attending college. That’s why student loans exist. However, taking out a loan needs to be taken seriously. You can reduce the amount of money you need to borrow by working a job and applying for scholarships. If you think you need a student loan, keep reading for tips on managing your loans.
Paying for College through Grants and Scholarships
Before you jump the gun and apply for a student loan, consider grants and scholarship first. Grants and scholarships are literally free money to you. Sometimes the terms are used interchangeably but they are not the same. Yes, they are both forms of money that you do not have to pay back. The main difference is how you qualify for the awards. Grants are usually awarded based on your financial need. Scholarships are usually awarded based on achievement, such as grades and sports.
Here are a few reasons why you should consider applying for scholarships and grants.
Scholarships and Grants Can Help Reduce Your Need for a Student Loan
While a combination of scholarships and grants likely won’t cover your entire semester’s expenses, they can make a large dent in how much money you have to pay. Winning these types of awards can result in you taking out a smaller student loan or even being able to wait another semester before needing a student loan. With a smaller or no student loan balance, you’ll have a better debt-to-income ratio, making it easier for your to get other loans in the future.
Scholarships and Grants Can Free Your Time
If you are determined not to take out a student loan, you will need to come up with the money to pay for your semester pretty quickly. Many students work at least part-time through a work study job or another job to pay for their expenses. If you receive scholarship and grant money, you can spend less time working to pay for your education since these awards can help cover the costs. (On the other hand, an athletic scholarship will likely take up a lot of your time.) Carefully consider the benefits and time cost of the scholarship before accepting.
Scholarships and Grants Can Grow Your Network
Many scholarships are connected to niche organizations or groups. If you win, it’s because you fit in the group. This community of like-minded individuals can serve as great resources as you finish your degree and work on your upper-level course work. While grants probably won’t connect you to such a niche group, you may be required to attend an event or two with other grant winners at your college. This allows you to meet new people you can grow with personally and professionally.
Scholarships and Grants Can Help You Land a Job
Around 54% of people get jobs thanks to someone they know personally or professionally. In addition to the increased network you can gain from your scholarship experience, you can add scholarships to your resume. This is appropriate for trying to find your first job after graduating and can make you stand out from other candidates. When I was looking for a post-college job during my final semester, I was asked about the awards I listed on my resume. They offered me a job shortly after!
Scholarships in Missouri
Many schools offer scholarships that are unique to the institution. The U.S. Department of Education offers grants that you can use regardless of which college you attend. There are also other scholarships specific to Missouri residents that you can apply for. Here’s a list of a few popular scholarships for Missouri residents and students.
Dual Credit/Dual Enrollment Scholarship
High school students that enroll in dual credit courses can have the entirety of their tuition covered if they meet CPA and financial aid requirements. Plus, you can get high school and college credit for the work.
ISL Midwest Senior Scholarship
This $1,000 scholarship is granted to randomly selected seniors that plan to attend an eligible college the following fall. The deadline to apply is usually in April every year. There are no additional steps to apply, making this an easy application.
Purdy Emerging Leaders Scholarship
The award amount of this scholarship is up to $5,000 and can be renewed the following year. Upcoming sophomores, juniors, and seniors that are enrolled full-time can apply. Recipients have proven leadership, character, and academic performance.
A+ Scholarship Program
This merit-based scholarship provides funds to students that meet specific criteria of attending a specific high school, at least a 2.5 GPA, at least a 95% attendance record, performed unpaid tutoring, and more. While there are a lot of requirements, the scholarship amount can be significant. The amount you receive depends on how much you received from federal grants.
Tips for Applying for Scholarships
Scholarships are competitive, since you can get free money. With so much at stake and high competition, how do you stand out to be a contender?
Focus on Smaller, Niche Scholarships
Big national scholarships often come with large awards, but also huge applicant pools, making them highly competitive. Smaller state, or local scholarships usually attract fewer applicants, giving you a better chance of standing out. Look for opportunities that align closely with your interests, background, or community.
Follow Instructions Carefully
Scholarship applications take time and effort, so it’s frustrating to be disqualified over simple mistakes. Double-check that you meet all requirements, complete every section thoroughly, and include all requested materials before submitting.
Start Early and Avoid Last-Minute Stress
Unexpected issues, like website errors or internet problems, can interfere with submitting your application. Aim to finish a few days before the deadline to give yourself a cushion. That way, you can be confident that you application was successfully submitted on time.
Proofread Thoroughly
Your application should reflect your best self. Spelling and grammar mistakes can leave a negative impression, so review everything carefully. It can also help to ask a teacher, parent, or friend to proofread your work. Even if your writing is grammatically correct, it may not clearly communicate your message.
Research Each Opportunity
Take time to learn about the organization offering the scholarship and review past winners if possible. This can give you insight into what they value in applicants and may even lead you to discover additional, lesser-known opportunities.
Getting a Student Loan
A common way to pay for college is by taking out a student loan. Some use this as their default method, but it doesn’t have to be. While student loans can serve as great tools to help you afford college, the decision to take out a loan should be taken seriously.
Complete the FAFSA
Before you make any financial decisions, your first step should be to fill out the FAFSA. The Free Application for Federal Student Aid is a free application that the U.S. Department of Education uses to determine you need for financial aid. The results from your FAFSA can affect the amount of grants, scholarships, and other financial aid you can be eligible for outside of federal funding.
The FAFSA evaluates you need for financial aid based on your tax returns, checking and saving account balances, and other investments. The FAFSA will also evaluate your parents’ financial status if they claim you as a dependent when filing their taxes.
The results of the FAFSA are not taken lightly. Fortunately, you will resubmit your FAFSA every year, so it accounts for your changing financial situation. The application opens on October 1st and the deadline to apply is typically June 30th, or the end of the academic year, whichever comes first. However, some colleges require the FAFSA to be submitted before the national deadline. Check with your school to make sure you complete it on time.
Consider Alternative Options
To determine your need for a student loan, whether federal or private, you should consider other types of available financial aid. This includes grants, scholarships, and job status. After evaluating how much money you will receive through grants and scholarships, determine how large of a loan you will need to borrow. If you have determined that you will only need to borrow a couple thousand in a semester, calculate how many hours you could work instead. This may change your plan for paying for the next semester.
Research Private Student Loans
Third-party organizations such as Sallie Mae and Earnest offer private student loans. While your loan amount and interest rate may be determined by your FAFSA, you are not borrowing money from the government. Organizations like these can also offer fixed or variable rates. The process to pay back a private student loan will differ depending on your loan terms.
Get a Personal Loan
A Personal Loan from Alltru can be a great alternative to a federal or private student loan. With Alltru, you start paying off your balance immediately and will pay your balance in full by 24 months. This is a great option if you want to be out of debt quickly. Plus, the results from your FAFSA do not determine your eligibility, which is helpful if you don’t qualify for federal financial aid.
Use Your Home’s Equity
Working adults that go back to school may have significant home equity. If this is you, you can use a Home Equity Line of Credit, or HELOC, to borrow against your home’s equity at a low rate. If other major life expenses pop up while you have a HELOC, you may be able to group the funds together and avoid another loan.
Types of Student Loans
A few months after you submit your FAFSA, your school will reach out to you with a financial aid offer. This offer will include grants and loans from the federal government. You can decide to accept none, some, or all the financial aid.
There are three main types of student loans. Whether or not you will be offered any of these loans and how much will depend on the results from your FAFSA and will be included in your financial aid offer from your school.
Direct Subsidized Loan
This type of loan is available from the federal government to eligible undergraduate students that have demonstrated financial need as determined by the FAFSA. Students can borrow a direct subsidized loan up to $5,500 depending on whether or not they were claimed as a dependent.
Direct Unsubsidized Loan
This type of loan is available from the federal government to eligible undergraduate, graduate, and professional students that have not necessarily demonstrated financial need as determined by the FAFSA. Students can borrow up to $20,500 depending on how much they borrowed with a direct subsidized loan.
Direct PLUS Loan
This type of loan is available from the federal government for parents who claim their child as a dependent or graduate or professional students. This is a way that parents can help pay for their student’s education. Borrowers can take up to the amount of the school’s cost of attendance minus other financial aid. This means that they cannot borrow more than what the semester will cost.
Federal Student Loan Forgiveness
Certain College grads may be able to take advantage of student loan forgiveness options if they’ve been out of college for several years already and meet certain criteria.
Teachers may be eligible for Teacher Loan Forgiveness up to $17,500 for their Direct Subsidized or Unsubsidized Loans or their Subsidized or Unsubsidized Federal Stafford Loans. if they have taught in low-income schools for five years. If they do not meet eligibility for the Teacher Loan Forgiveness program, they may be eligible for the Public Service Loan Forgiveness if they have a Direct Loan and have made 120 monthly payments toward their balance.
Government employees, not-for-profit workers, and medical professionals may be eligible for the Public Service Loan Forgiveness if they have a Direct Loan and have made 120 monthly payments toward their loan balance along with other criteria.
Paying Back Your Student Loan
No matter your loan balance, you must start paying off your student loan balance after you graduate. Here are a few steps you can take to pay back your student loan balance.
Determine What You Owe
By logging in to the Federal Student Aid website, you can find your principal amount, current balance, and interest rate. If you have a student loan through a private lender, you will need to check your balance through their system instead. In this portal, you’ll see your minimum monthly payment.
Consolidate Your Loans
For many, consolidating all the individual student loans into one payment makes it easier to keep track of knocking down the balance. This may extend the time it takes for you to pay back your student loan balance. However, your monthly payments will be more manageable. You can also potentially save on interest by consolidating your loans.
Create a Payment Plan
Instead of paying just the minimum amount, calculate how much faster you can pay off your loan by using our online calculator. By paying more than the minimum amount, you can save on interest and start rebuilding your savings too. If you have a target in mind for being debt-free, use our Meet a Debt Payoff Goal calculator to see how much you will need to pay toward your loan every month to reach your goal.
Talk to Alltru
Our financial advisors can help you evaluate your situation to help you consider your payment options. Paying off a loan takes time. But with the right team supporting you, the process will be much easier.
Paying for College Takes Strategy
Going to college comes with many opportunities. Wise money management is just one of those. Taking on the responsibility of paying back a student loan is a major commitment. The consequences of taking on a student loan can affect you for years to come. Hopefully, these tips about student loans will help you determine if you need a student loan, what type of loan to borrow, and your payment options.
Like any good thing, it takes time. It doesn’t matter if your parents started saving for your education when you were young or if you spontaneously decide that now is the time to start saving for next semester. The time and effort you put into making wise financial decisions about saving, grants, scholarships, loans, and payment plans will affect you in the future. Hopefully, these decisions will reward you for years down the road with a college degree and great money management skills, all thanks to your hard work and determination.
