IT'S MORE THAN JUST TUITION

      When people typically hear “college costs” they think of tuition and room and board. Of course, these costs differ between colleges. When financially planning for college, many people forget about the cost of other living expenses, such as going out for lunch, buying a college t-shirt, or having a night out. The finances for these other living expenses really goes into savings and budgeting, which is focused on in the other sections Budgeting and Achieving Wealth. Needs and wants really are the core to making sure you have enough money to go out with your friends.

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      Financial aid can be made up of scholarships, grants, loans and/or work study. You can apply for scholarships and grants to the college of your choice and those do not need to be paid back. Scholarships can be based off of two things: merit and need.

 

Merit-based scholarships are given to students who are high-achievers academically.

Need-based scholarships are given to students for families who need assistance in paying for college, since many colleges are really expensive nowadays.

 

      There are university and government sponsored loans which are offered at an interest rate below what you could get at a bank. These do need to be paid back with interest. This is how banks make money: lending money out and collecting more.

 

      Lastly, some universities offer work study programs, where a student can work at the school library, in an office, or checking student IDs after classes so that they can either get cash for living expenses or a reduction in their tuition.

 

      All families are expected to contribute something to their student’s education. There are online programs that can calculate your family’s estimated contribution to tuition, room and board, books, school fees, and transportation.

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      Once you find a school that you are interested in, go on to their website and look for their Net Price Calculator which gives you an estimate of how much your family needs to contribute to that specific college. It’s scary, but it’s worth doing.

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      You can also find hundreds of scholarships online. For example, scholarships.com allows you to complete a quick profile and instant get matched to scholarships you qualify for.

      For example, there’s a scholarship available just for being in the state of Maryland and wanting to pursue a career in education. Scholarships can be achieved by submitting an essay or even just submitting your information into a lottery!

      Getting a scholarship does not mean that you have to be a perfect 4.0 student!

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      With financial aid, everybody here should fill out the FAFSA form when applying for college. FAFSA stands for Free Application for Federal Student Aid. Prospective students use this form to apply for student financial aid. Almost every student qualifies for an unsubsidized Stafford loan regardless of need. 

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For more information about college costs, click on the More Information tab above.

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WHAT IS A 529 PLAN?

   A 529 plan is a educational (college or K-12 tuition) savings plan that has financial aid and tax benefits. 

• Available to investors of all income levels

• Low impact on financial aid

• Tax free investment growth

• Tax free distributions for qualified educational expenses

• Certain states offer a tax deduction

• Can invest in any state 529 Plan, regardless of residency

• 529 accounts are removed from your taxable estate, yet you retain full control over the account including the right to take the money back or transfer to a different beneficiary

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