Smart Shopper: Personal Finance Advisor

Dwindling federal and state financial aid, shrinking endowments, and less fundraising are forcing many colleges to raise tuition and cut back on scholarships, loans, and grants, leaving graduates with skyrocketing debt as they join the ranks of the working class in the real world. To deal with this increasing debt, graduates and future graduates will have to use their creative problem solving skills learned in school to find new ways to pay down the cost of their degrees. Here are 10 creative ways to minimize costs and to pay for college with your money or, even better, with other people’s money:

1. Federal Student Aid: The Federal Government’s financial aid for higher education may be shrinking, but there is still plenty of money out there and you only have to fill out one form to be eligible. The F.A.F.S.A. (Free Application for Federal Student Aid) is available online and can be the answer to most of your funding needs. There is grant and scholarship money available as well as low interest loans for students of all backgrounds. This should be your first step in planning how to pay for your education.
2. Private Scholarships: Whether through your school’s merit based scholarship programs or through your community, there is plenty of money out there for those willing to pursue it. Scholarships through your school will be larger, but more competitive, while local scholarships are generally smaller, but easier to win. Research scholarships online, in your local newspapers, with your high school guidance counselor or through your school’s financial aid offices. Be assertive, the money is there for the taking!
3. Employer Tuition Reimbursement: Many companies (like AT&T and FedEx) now offer tuition payment and reimbursement programs. Hey, if you’re slaving away years of your life, you might as well get something more than minimum wage right? Just be sure to read the fine print and know what you’re committing to.
4. Earn College Credit in High School: Whether taking advantage or your high school’s Advance Placement programs or taking classes at the local community college, earning credits while still in high school is a great way to minimize tuition costs.
5. Co-Op Programs: Many schools offer Co-Op programs that require full-time employment as part of the curriculum. In these programs, students generally work full-time for a semester or two at real world jobs (usually paid) that allow them to gain real experience and contacts and also to earn money to help pay down costs while still in school.
6. Transfer Up: Many larger colleges and universities have good relationships with nearby community colleges that allow cheaper credits to transfer easily and fully from the community college to the larger college or university. This is a great way for you to minimize costs while excelling at a less competitive school, but ultimately earning your degree from the more prestigious institution.
7. Go Where They Want You: There are only so many seats at the top universities and colleges, and more importantly only so much scholarship money. So, to help reduce total tuition costs, go to a school that is willing to fight to educate you – fight for you with scholarship money. Excel where you are wanted and you will not only come out at the top of your class, but also with a much smaller debt load (if any).
8. Federal Work Study Program: The program provides jobs for students with financial need and encourages students to do community service and work related to their studies to help pay for school. If you qualify for FWS aid, your total Work-Study award depends on your level of need, the total FWS money that your school has and your application date. Check with your schools financial aid office to find out more about work study programs.
9. Military Service: The U.S. Armed Forces offer several programs that provide students with money to pay for education. Students have the option to serve first and go to school later or go to school first and serve later. Those who serve first can receive up to $50,000 toward school expenses for a tour of active duty. Those who serve in the Reserves can receive up to $24,000 for the one weekend a month, two weeks a year commitment.
10. Loan Forgiveness: The Federal Government has programs that help students reduce or in some cases cancel debt for community and public service work after school, such as service in AmeriCorps, the Peace Corps, Teach For America and other groups. Many states have similar programs.

And if all of these options don’t work for you, you can always just beg, borrow and steal enough money to cover your seven-figure education debt. Or you can wait for that rich old aunt to bequeath your inheritance to you to fund your education.