Pay For College In Alternative Ways
- Think creatively when paying for school
- Open a 529 Saving Plan before college
- Take the time to research scholarships
- Consider an employer who’ll pay off your loans
- You can get money through social networking
- Private Scholarships. It seems like there’s a scholarship for everything these days, for anyone from those who study industrial automation engineering to Chinese food lovers. And, if you qualify (and take the time to apply), there’s a chance that you’ll get money to pay for school. Additionally there’s a huge range to how much you can get per scholarship. We’ve heard of anything from $100 to the entire cost of school. For example, a scholarship for bug collectors can be $300 but a scholarship given by the Hispanic Scholarship Fund can be thousands of dollars. To seek them out, be patient. We recommend using online scholarship search sites like fastweb.com, a scholarship aggregator, or speaking with your college or high school counselor for a list of more targeted scholarship sites or local opportunities.
- College Sponsorship Programs. Much like scholarships, but tougher to find, college sponsorship programs ensure that your entire education is paid for (yes, all of it). Corporations, organizations and universities are willing to cover the costs of college for different reasons; you may be going into a career where you’re in the minority and an organization wants to increase diversity, for example. Start doing your research by approaching the different organizations that you are a part of or asking around to friends and family. For college sponsorships there is often a lengthy application process, so don’t take yourself out of the running by not allocating enough time to prepare.
- Employer Paying Your Loans. Committing to a post-graduate career like teaching kids from low-income neighborhoods via Teach for America will entitle you to have part of your loan payments paid for by the organization. Typically, you’ll be required to sign up for a several-year commitment. Making your career decision shouldn’t be based on joining programs that will help pay off your college debt, but it can be a viable option if you’re interested in trying a certain career path or working with a non-profit organization. Other organizations that partake in loan forgiveness include: AmeriCorps, PeaceCorps, and Volunteers in Service to America.
- 529 Saving Plan. The 529 Saving Plan is an education plan and an easy way that you (or your parents) can save to pay for education. Think of this as a type of savings account where you get special tax benefits for putting away money that is later used towards education. If you set up a 529 you can use it in several ways, including a savings plan that works similar to an IRA contribution or a prepaid plan where you can pay costs ahead of time. After opening the account, it will function like an investment account without too many complicated details or hidden fees. And since taxes can take away a substantial part of income, using a 529 plan to save for college is always a good deal. However, if you choose to withdraw money without using it for education, your savings will then be taxed as income.
- Alternative Loan Programs. Programs like TuitionU are some of the newest ways that you can finance your education. TuitionU provides private loans via a credit union as well as peer-to-peer loans, which can feel like a great alternative to dealing with large banking institutions. There is a $5 fee to become a part of the credit union or you can go through microfinance company GreenNote.com (which was acquired by TuitionU) to get your loans directly from small lenders.
