Southland News
How to pay for college
How to pay for college
As we all know, college is expensive! There are several different types of student aid, and the application process can be arduous. Here are the common forms of student aid and the order in which you should pursue them.
Fill out the FAFSA
FAFSA stands for Free Application for Federal Student Aid and it’s your ticket into the financial aid arena for college. Even if you don’t think you’ll qualify for aid, it will put you in the running to receive federal grants, work-study opportunities, student loans, and some state and school-based aid.
Fill out the FASFA first before applying for other forms of student aid. With FAFSA, some colleges award aid on a first-come, first-served basis.
Apply for scholarships
You don’t have to wait until you’re a senior in high school to apply for scholarships. In fact, many scholarships will allow any high school-aged student to apply. Many different clubs, organizations and financial institutions will offer scholarships and you can use a scholarship search tool to narrow your selection.
Speaking of scholarships, Southland is sponsoring Everfi's Financial Literacy Bee! From April 1 – 15, teens ages 13-18 can enter to win college scholarships up to $10,000. Students must complete four financial education courses and submit a short essay to be eligible to win. As an added bonus, Southland will be awarding an additional $1,000 scholarship to local entrants from LA County and Orange County.
Use grants if you qualify
Grants are beneficial because they do not have to be paid back. By filling out the FAFSA, you will be able to receive Pell Grant money if you qualify. The Pell Grant is a need-based financial aid program from the federal government that is designed to help undergraduates from low-income families afford college.
Make sure to submit and renew your FAFSA every year to qualify for Pell Grants.
Tap into your savings
Realistically, you’ll probably have to tap into your savings to cover the expenses of tuition, room and board, and other college-related expenses.
If you or your parents saved money in a 529 plan — a state-sponsored tax-advantage college investment account — access the funds by contacting the plan’s administrator.
Take out federal loans
If you need additional aid to cover your expenses as a student, start with federal loans. Federal loans often have benefits that private loans don’t, like access to income-driven repayment plans and loan forgiveness programs.
As a rule of thumb, aim for student loan payments that don’t exceed 10% of your projected after-tax monthly income during first year out of school.
Borrow private loans
Finally, you can opt to apply for student loans from a private lender. It’s important to to compare your options and shop around for the lowest interest rate and the most generous borrower protections.
Consider Southland your student loan provider! We offer an easy online application and approval process, lower interest rates, flexible repayment options, and zero origination or prepayment fees.