While Junior’s busy writing a captivating college admissions essay and filling out stacks of applications, Mom and Dad bite their fingernails, wondering how they’re going to pay for it.

Paying for college can be a complicated and intimidating journey, but with some helpful advice and plenty of resources, it’s not so bad.

How much will it cost?

When figuring out how much it’ll cost Junior to attend College A vs. College B, don’t forget about all the other costs that add up: room and board, student fees, books and personal expenses.

To accurately assess the cost of a college, you need to know the direct and indirect costs associated with each institution.

Direct costs typically include tuition and fees and room and board. Tuition and fees will vary by school — public or private, in-state or out-of-state? Get details from each college or university’s financial aid office. Room and board also will vary — on campus or off campus? Compare the price of dorms with apartments and compare meal plans with buying and cooking your own meals.

Indirect costs include things associated with attending school like textbooks and trips back home.

* Textbooks and supplies: Costs vary greatly from course to course. Students can save money by buying used books, buying online or sharing with classmates. Some classes require more supplies (e.g. lab goggles or a camera) and others may have printing or copying charges.

* Computer: Check with admissions to see if the school requires students to have a personal computer. If Junior has his own computer, don’t forget about the costs of a printer, software and an Internet connection. Remember that colleges often have several computer labs on campus for students’ use.

* Off-campus living: Rent, utilities, furniture and groceries — they all add up and fast.

* Transportation: Whether it’s by city bus or subway or car, commuting to campus has its cost. Remember to factor in car insurance, gas, maintenance and parking. And if Junior wants to come home for Christmas, add in the cost of a couple-hour car ride or a plane ticket.

Free money? Where?

“Free” money is available to students as scholarships and grants from a variety of sources including governments, businesses and service organizations. Some scholarships and grants are awarded based on financial need while others are awarded for achievement, religious affiliation, ethnicity, memberships or hobbies.

Scholarships

There are countless scholarships out there for Junior’s taking — he’s just got to find them! Students should start diligently searching for scholarships early. The Internet is a great place to start, with several Web sites offering free scholarship searches.

Some of the best are:

* allscholar.com

* collegeboard.com

* fastweb.com

* finaid.com

* scholarships.com

* ncaa.org (for high school athletes)

Junior’s guidance counselor probably has a list of local and national scholarships, too.

Grants

There are a handful of grant programs out there, but here are the big ones:

* Federal Pell Grant: This one’s based on financial need. The U.S. Department of Education determines your eligibility based on your Free Application for Federal Student Aid (we’ll get to that later). Awards are up to $4,050.

* Federal Supplemental Educational Opportunity Grant (FSEOG): This is also based on financial need. Your college financial aid office determines your eligibility from your financial aid application. Awards range from $100 to $4,000.

Consult each college’s financial aid office for more information about the grants for which your family might be eligible.

Can I borrow money for this?

If your savings, grants and scholarships still don’t cut the mustard, your family should consider any of several loan options.

Federal loans

Federal loans often have more favorable terms than private loans including lower interest rates, interest paid by the government while you’re in school and longer repayment terms.

There are three widely-used federal education loans:

* Stafford loans (subsidized): The federal government pays the interest while you’re in school at least half time and during the authorized deferment and grace period. You are responsible for the interest at repayment. You may qualify for a subsidized loan if you have financial need, which is calculated from the FAFSA, cost of school and other financial aid.

* Stafford loans (unsubsidized): You are responsible for the interest as soon as the loan is taken out. You can pay the interest as it accrues or defer it until after graduation.

Note that Stafford loan limits vary depending on your student status (independent vs. dependent) and grade level.

* Perkins loans: A Perkins loan is a low-interest (about 5 percent) loan for students with exceptional financial need. The Department of Education allocates a certain amount of funding to each school and the school determines which students demonstrate enough financial need for a Perkins loan from their FAFSA.

* PLUS loans: PLUS loans are low-interest, federally funded loans for parents of undergraduate, dependent students. PLUS loans are available regardless of income or financial need.

Private loans

Private loans are designed to supplement federal loans and can be obtained from private financial institutions. Each lender has different terms, so shop wisely.

Wait, there’s more?

There are a few other things Junior can consider when it comes to paying for college. Don’t forget to look into:

* Federal Work-Study

* military service

* community service (e.g. Americorps or the Peace Corps)

Plus, anytime Junior can earn college credits while he’s still in school — by taking Advanced Placement classes or taking the College-Level Examination Program (CLEP) exam — that’s a step in the right direction.

Now what is this FAFSA you keep mentioning?

The FAFSA (Free Application for Federal Student Aid) is the form the federal government uses to determine financial need. Your family should fill it out using your most current tax information and send it in as soon as possible after Jan. 1. Fill out the application online at www.fafsa.ed.gov. (You’ll need a Department of Education PIN number first, so don’t forget to leave enough time to sign up for one.)

Overwhelmed yet? Just take a deep breath; it’ll be fine. Start early, don’t give up and use all the resources available.

This entry was posted on Wednesday, November 29th, 2006 at 9:43 pm and is filed under College Loans, Education, Student Loan. Tags: College, Education, Financial Aid, Grant, Loans, Scholarship, Student, Study. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.