7 College Funding Myths Debunked

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When it comes to funding your college studies, there are quite a few popular misconceptions that can lead students astray. Don’t let these myths deter you from pursuing a higher education. Below are 7 common college funding myths debunked.

Financial aid is only for low-income students

A lot of people think that financial aid is only available to students from low-income backgrounds. The reality is that 86% of college students use some kind of financial aid to pay for their degrees.

Contrary to what some people think, there is no income cap when it comes to receiving needs-based financial aid, and your savings are barely considered either. Other factors are instead used to determine if you are eligible, such as family size and location. As a result, more people are eligible than they realize.

There is also merit-based financial aid, which includes scholarships and various grants. These may cover some or all of your studies and may not need to be paid back. Private student loans are also an option.

You need a good credit score to apply for student finance

While a reasonable credit history is required for certain types of loans, most federal student aid programs do not require a credit check. This includes grants and the Stafford loan.

Your credit score may be taken into account when applying for a student loan. However, there are private student loans out there that do not require a strong credit score and instead require a co-signer. Take the time to shop around for loans to find these solutions if you have a low credit score.

You’ll graduate with at least $30,000 of debt

A lot of people are put off college after hearing horror stories of students graduating with overwhelming amounts of debt to pay off. Whether you’re going for graduate student loans or any other option, these can seem overwhelmingly expensive. While it’s true that some private universities charge tuition fees totalling over $50,000, there are many options that are much more affordable. There are some colleges with tuition fees of less than $10,000 and even some free options for those who meet eligibility criteria.

Public universities are cheaper than private universities, and you can save even more money by choosing a public university within your state. There is also the option of community colleges and online courses. Then, of course, there are grants and scholarships to look into, which can help partially or wholly cover tuition fees.

It’s always cheaper to choose a public university

Public universities typically charge much lower tuition fees than private universities. But that doesn’t mean that you should avoid attending a private institution just because of the cost. A lot of private universities are known for providing substantial grants and scholarships that are often much more generous than public universities. This could potentially make these universities cheaper than a public university.

To be eligible for this private-university-supplied financial aid, you may need to come from a low-income background or show exceptional merit. It is worth doing your research to see exactly what funding you may be eligible for to determine whether a private university is an affordable option.

Scholarships are only for top students

Another commonly held misbelief is that scholarships are solely for students with perfect GPAs or exceptional talents in sports or the arts. In reality, there are numerous scholarships available for a wide range of criteria. There are scholarships available for certain demographics. There are scholarships for those who do certain community work. There are even employer-sponsored scholarships, which involve an employer paying for your studies under the condition that you work for them when you graduate.

Not all of these scholarships are easy to find, so you may have to do some extensive research. Some of the best college search advice and forum sites have lots of resources dedicated to scholarships. You may also be able to talk to college advisors about where to seek out scholarship funding.

Your parents need to be US citizens to be eligible for student aid

The FAFSA doesn’t ask about whether your parents are US citizens, making it possible to still receive funding. If your parents do not have social security numbers, simply get them to enter 000-00-0000 when the FAFSA form asks.

If you do not currently live in the US, you may find that some colleges also offer unique finance options for students from other countries. You may also be able to still get funding using finance options in your home country – some loans and grants may still cover studies abroad.

You have until June 30th to submit the FAFSA

While June 30th is the final deadline for submitting the Free Application for Federal Student Aid (FAFSA), many colleges have earlier deadlines for priority consideration. If you wait until the last minute to submit your application, you may miss out on first-come-first-serve financial aid options provided by some institutions. This is why it’s better to submit your application as soon as you can.

You can submit the FAFSA as early as October 1st. You’ll need to gather some documents, and ideally will need your parents around, as some of their details may be necessary to complete the form. This post delves into a few more benefits and tips regarding submitting your FAFSA early.

Conclusion

To conclude, you do not need to be on a low income to receive student financial aid, nor do you need to be gifted to apply for a scholarship. There is no credit check when applying for government financial aid, and your parents do not necessarily need to be US citizens. The deadline for your FAFSA application is 30th June, but it’s recommended that you apply much earlier to access more funding options. While tuition fees vary, you won’t necessarily graduate with a ton of debt – it may be possible to save money by choosing a state university, community college or an online course. And even if you have your heart set on studying at a private institution, there may still be grants and scholarships that you can take advantage of.

*This article is based on personal suggestions and/or experiences and is for informational purposes only. This should not be used as professional advice. Please consult a professional where applicable.