When people talk about college, there is usually some reference to debt. The sheer cost of college can be really intimidating. There are tuition bills, housing, textbooks, money spent going out, and even more things we often forget about. Because of this, students have to carry unnecessary stress on their shoulders when they should be focusing on doing well academically and making memories. That’s exactly why we wanted to make this article and shine a light on ways you can pay for college without digging yourself into a hole.
Understanding Financial Aid
Many families have come to the conclusion that the only way to get through college is through financial aid, scholarships, or taking on a large amount of student loan debt. While this is a reality for many, there are certain aspects that have gone under the radar that can help alleviate the debt. The most common financial mistake students make happens before they ever start college. They skip or rush through the FAFSA (Free Application for Federal Student Aid). The application process can feel tedious as expected, but many families wrongly assume their income disqualifies them from receiving aid.
That misconception carries a hefty price tag. Data from the NCAN shows that high school graduates leave more than $4 billion in federal Pell Grants unclaimed every year by failing to submit the form. If you don’t know, Pell Grants are direct financial awards that do not need to be repaid. Filling out the FAFSA does more than just open doors to federal aid. Universities use FAFSA data as the basis for awarding their own grants and scholarships.
Unclaimed Money
It’s a shame that not all students go for scholarships. Some just think they wouldn’t qualify, so they don’t even fill out applications. But scholarships exist because who couldn’t use a little help when paying for college? According to Forbes, $100 million in scholarships goes unused each year due to a lack of applicants. Scholarships often have this connotation that you have to have a high GPA, grow up under heartbreaking circumstances, and be able to write a touching story that connects with the person who grants the money. The fear associated with these scholarships is not all it is cracked up to be. It often comes from national programs offering huge rewards where, quite frankly, the chances are slim because millions are applying for them.
The way to do it is to focus locally. For students attending school in Michigan, there are a lot of good opportunities out there. For example, the Michigan Achievement Scholarship awards eligible high school grads attending in-state public universities up to $5,500 per year for up to 5 years. Community college students in Michigan can also get help through the Community College Guarantee.
Beyond these, there are plenty of other scholarships offered by our local community and by regional businesses that attract far fewer applicants. Getting even one of these local scholarships can make such a huge difference when it comes to how much you have to pay in a year.
Managing the Day-to-Day
Getting scholarships to help pay for college is only half of the battle. The other half is managing weekly expenses so personal savings aren’t gone halfway through the year. Budgeting on campus doesn’t require complex accounting. You just need to track your transactions and see where your money is going. Things like activities on the weekend, ordering food, and impulse purchases. Over a semester, those small purchases can add up quickly. If you want to read more about budgeting and achieving financial peace of mind, check out our blogs. Not everything will apply to your situation, but you will be sure to find a tip or two that will help you in the long run.
Why Banking Local Matters
Navigating financial decisions as a young adult is easier when working with a bank that understands your situation. We offer checking and savings accounts for students getting their personal finances in order. With local branches all across Southeast Michigan, students get access to accounts with high-yield savings options. For more information on how to maximize your savings now, check out our current offerings.
Working with a community bank gives students direct access to people who are qualified to give practical guidance on how to set the right budget and prepare for a post-grad life that doesn’t involve a ton of debt. Funding your education is a long process, but it doesn’t have to ruin your finances. By completing financial aid paperwork early and properly, applying for local scholarships, and practicing good financial habits, students can most definitely complete their degree while keeping their financial health in good standing.
DISCLAIMER
The views expressed are those of the author and are intended for general informational purposes only. This content should not be considered financial, legal, tax, or investment advice. Readers should consult a qualified professional before making financial decisions, as individual circumstances vary. Nothing in this article constitutes an offer or recommendation of any specific product or service.