Top 5 Ways to Pay for College: College Financial Aid, Explained
Still figuring out how to pay for college? From university scholarships to federal loan programs, here are the most common types of financial aid for undergraduate students.
1. Apply for a Scholarship
Scholarships are typically merit-based. They consider your grades, talent or service. Best of all, you don't have to pay them back.
- University scholarships: Universities earmark scholarship dollars every year for undergraduates. At Saint Louis University, the most coveted award is the Presidential Scholarship — tuition paid in full for four years.
- Private Scholarships: How else can you get a scholarship for college? Some trusted resources include Fastweb, College Board, Sallie Mae or the Scholarship Foundation of St. Louis. A private scholarship might affect the rest of your financial aid package, so notify your university's office of financial services if you're awarded one.
2. Apply for a College Grant
College grants are need-based, and like scholarships, grants don't have to be repaid. So what's the difference between a grant and scholarship? College grants for undergraduates are provided by nonprofit organizations — often the federal and state governments — and are often tax-exempt.
The Federal Pell Grant is the most common at Saint Louis University. It offers undergraduate students a maximum of $6,895 in 2022-2023. What other grants are available? The Supplemental Educational Opportunity Grant (SEOG) is for undergraduate students with exceptional financial need. In Missouri, look into the Access Missouri Grant. And at Saint Louis University, grants are awarded annually to full-time students with financial need through grant programs through the SLU Grant.
3. College Work Study
Work study is a form of federal financial aid that allows undergraduates to earn money for college through a part-time job on campus. Students get a biweekly paycheck working an average of 15 hours a week. At SLU, students can start applying for work study jobs as soon as June 1.
4. Federal Student Loans
The bad news: federal student loans have to be repaid. But you don't have to begin immediately after you graduate college, and most student loans are low-interest. The Perkins Loan and the subsidized Direct Loan, offered by the federal government, are the best student loans for undergraduates, followed by the unsubsidized Federal Direct Loan.
5. Private Student Loans
Private student loans are not federally funded and often have variable interest rates that aren't capped. Translation: Explore other college financial aid options first. If you do pursue this route, look into a Parent PLUS loan or an alternative loan in your own name. Remember to spend wisely. To determine how much you can afford borrow for college, visit finaid.org/calculators.