Houston Bookkeepers Tip: The 4 Ways to Pay for College and How They Matter

With a semester of college costing anywhere from thousands to tens of thousands of dollars, it can be enough to scare any student and parent away, whether graduate or undergraduate. When it comes to family and business bookkeeping, we like to help our readers out as much as possible. However, there are different systems set up to help families pay for college that can greatly reduce the cost of tuition. Each has its own pro’s and con’s, and we review the four most common below.

1. Scholarships –

These are the most sought after forms of paying for school. Not only can scholarships award money well into the tens of thousands of dollars, students who receive them also receive the academic honors that go along with them. However, thousands of students can often apply for the same scholarship, making them increasingly difficult to get. There are also many scholarships that charge an application fee, so only go for the ones you feel you have a decent shot at.

2. Grants –

They are the most common way students pay for school. Grants are awarded to students if they can show need, academic achievement, or a variety of the two. Grants often involve filling out the complex FAFSA form (free application for federal student aid), but every student who qualifies for a grant receives one. Like the scholarship, grants are free money to be used for school that does not have to be paid back. But much like paying your taxes, filling out just the FAFSA will be time consuming and at times frustrating.

3. Work for Study –

It is exactly what it sounds like. Students are accepted to a school and agree to work in an area such as the bookstore or library in exchange for decreased tuition. Another pro of this method is the added work experience to student’s resumes. The downside is that not all schools offer this option. Savvy students and their parents may also be able to find work for cash options that carry less hours and pay better.

4. Student Loan –

The loan option can often give students a large and sudden flow of cash. However, loans do have to be repaid and installments often begin shortly after graduation or immediately if the student drops out of school. Any students considering this option should weigh it carefully, as it is not uncommon to hear of people in their 30’s and even 40’s that are still paying back student loans. In addition, there are many careers that require expensive degrees, have low hiring potential, and low salaries for those who do find a job in their area.

Other Tips for Paying for College

One of the best tips to paying for college is to learn more about all of your options before you decide to enroll in a school. Once accepted, the schools must provide information on how much tuition will be, as well as which financial aid options the student qualifies for. This makes it a good idea to apply to several schools. If, for example, your first choice is going to cost twice as much out of pocket as your second choice, it can be a deciding factor in which school a student attends.