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Your 1-2-3 approach to paying for college

When you're planning for college, the first question is often which school to choose. But equally as important is the question of how you'll pay for it. That's why we've partnered with Sallie Mae® to bring you their 1-2-3 approach to paying for college. If you're not sure how you'll pay for college or what you can afford, taking it one step at a time can help.

1. Start with money you won’t have to pay back

College Savings

Begin with any college savings you or your family have been put aside for college.

Scholarships

Scholarships are offered by colleges and universities, federal and state governments, religious groups, professional associations, employers, and other companies. Get the most free money possible. Scholarships aren't just for straight-A students or athletes, but they can be awarded for a number of criteria:Ìý

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• Ethnic, religious, or nationalÌýbackgroundÌý

Apply for scholarships—the earlier, the better, since many have deadlines.

Grants and Work-study

Grants and work-study are generally federally funded, so be sure to submit the Free Application for Federal Student Aid (FAFSA®) to apply for them. The FAFSA® is also used to apply for most state loan, grant, and scholarship programs.

• Pell Grants, the largest federal grant program, are based on financial need; unlike a loan, a Pell Grant doesn’t need to be paid back.¹Ìý
• Work‑study programs are offered by federal and state governments, as well as schools. They offer part‑time jobs that let students earn money to help pay education expenses.

2. Explore federal student loans.

There are several types of federal student loans, including Direct Subsidized Loans, which are based on financial need and Direct Unsubsidized Loans, which are available regardless of family income.

• You can apply for both by filling out and submitting theÌýFAFSA®.
• They’re issued in the student’s name and the student is responsible for paying themÌýback.
• They’re eligible for income‑driven repayment plans that link monthly payments toÌýincome.
• Federal loans may be eligible for loan forgiveness programs, such as the Public Service Loan Forgiveness Program for borrowers who are employed by a qualifying public service organization.

3. Consider a responsibleÌýprivate student loan.

If you still need more money for school, a private student loan can help. Private loans differ from federal student loans in severalÌýways:

• They’re originated by banks and creditÌýunions.Ìý
• They’re credit‑based: the lender reviews your credit score, history, and other information to determine if you qualify. A cosigner—parent, guardian, or other adult—may improve the chances of approval. Some lenders offer a cosigner releaseÌýoption.Ìý
• Your interest rate is based on several factors, including yourÌýcreditworthiness.Ìý
• Private student loans may offer different features, terms and options, and benefits that can help reduce your interest rate and/or total loanÌýcost.

Senior Year Checklist

Note: Timing for acceptance and school-specific financial aid information can vary by school.

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