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Self-Financing
Self-financing includes money that you have saved or have available to pay for your
education. This can include education savings accounts that have been set up by your
parents or grandparents, or money that you or your family has set aside for you to use for
college. Self-financing is an excellent option that will enable you to graduate without
debt.
Government Loans
A loan is money that you borrow that needs to be paid back. The US government has a
program called “Title IV” that manages the distribution of student loan funds. Unlike
private loans, which use credit score and income requirements as factors for approval of
the loan, the government loans are available to almost everybody at low interest rates.
Interest begins accruing on the money you borrow after you graduate, if you meet low-
income criteria. It may begin while you are in school, if you don’t meet low-income
criteria. To find out if you qualify for government sponsored student loans, you will need
to complete the Free Application for Federal Student Aid (FAFSA).
Government Grants
The US Department of Education awards over $150 billion dollars every year in grants and
work-study money to low-income students who qualify. A grant is money that does not
need to be repaid and will not increase your debt. Work-study is a program that allows
you to work at your college and receive a paycheck that you can use to help pay for
school or other expenses. Not all colleges participate in work-study, so you should check
with your college. To find out if you qualify for grant funds, you will need to complete the
Free Application for Federal Student Aid (FAFSA). The government also has grants
available for active military personnel, veterans, and their spouses.
State Funds
State college funds are usually grants that do not need to be repaid. Even if you do not
qualify for federal financial aid, you might still be eligible for a grant from your state. You
should contact the state grant agency where you live, to determine if your state has a
program to assist you in defraying your college expenses.
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ection 8 – Responsible Borrowing and Budgeting