by Chelsea Springli 
If you or your child is getting ready to start college, you’re probably feeling a little lost on how to navigate the world of financial aid and what your financing options are. You’re in luck! February is Financial Aid Awareness Month, so the higher education community will be providing crucial information to students and families so that you know how to borrow smartly.
An Overview of Cost
Tuition costs can be drastically different from school to school, so be sure to take these costs into consideration when sending out applications. On average, the tuition of public colleges in Missouri cost $10,248, and $24,159 for private colleges in Missouri. If you receive scholarship offers, be aware of what exactly is included and what you will still be responsible for. Scholarships are frequently for set dollar amounts, or cover tuition only. This leaves the student responsible for all other associated costs, such as housing, meal plans, books, and additional university fees.
An Overview of Financial Aid
Financial aid is available so that students can attend college even if they can’t pay their tuition ahead of time when scholarships and assistance from family members are not enough. There are many ways students can get financial aid for college, including:
- Being financially qualified to receive it based on income
- Performing well academically
- Being a first-generation college student
- Playing well in sports
- Planning to pursue a degree in a specific field
- Serving in the military
- Agreeing to work in particular locations or certain fields after graduation
- Having a special need or disability
Even if you think you will not qualify for financial aid, you should still fill out the Free Application for Federal Student Aid (FAFSA). This is used not only for financial aid, but to determine eligibility for federal and state student grants, fellowship programs, work-study opportunities, and federal loans.
An Overview of Loans
Along with federal loans, student loans are also available as financial aid to college students. These loans will help close any gaps between your built-up savings and the cost of tuition. It’s important to understand that the funds in student loans are borrowed and must be repaid with interest. At Alltru, we offer loans with low interest rates and flexible terms on Personal Loans. Homeowners can also use a Home Equity Loan or Home Equity Line of Credit for a low-interest option. Make sure to find a loan that aligns with your budget. With your budget in mind, you can realistically pay off your loan within its terms. We encourage you to explore your options early to find the right loan for you.
An Overview of Budgeting for College
As a college student, it’s essential to create a budget before you commit to borrowing any type of loan. I made the mistake of not making a budget and had to pick up more work hours in the middle of a busy semester! By estimating your expenses and income, you can determine roughly how much money you’ll need to borrow. In some cases, you may be able to delay borrowing student loans for a few semesters or pay off your HELOC balance shortly after your term ends. Here’s a budget template for college students that uses the zero-based method. This guarantees that every cent of your income and expenses have a place in your budget. You can also reset your budget every semester to make sure that your spending and income are up to date.
Find the Right Financial Aid Options
Remember, Alltru is always here to help. If you have any questions or need assistance, please don’t hesitate to stop by one of our branches or set an appointment to meet with a Certified Credit Union Financial Counselor.
