Paying For College Formula

Did you know there was a formula for paying for college? Well, here it is. The blueprint.

You + Aid = Paying for College

Let’s break this down.

You

Some may be shocked to see this part of the equation but must realize that college is a personal investment decision: You are deciding to pursue higher education, transform your life and change the trajectory of generations after you. So it’s only fitting that you contribute to this investment. It’s something about knowing you personally paid for something that elevates your expectations. You may not love the T-shirt but it was free. But when you go to the store you are definitely going to buy exactly what you love.

You may say, but I can’t afford to pay. This may actually true. After completing the FAFSA, you get an EFC (Expected Family Contribution). This is the amount based on the financial information provided is the predicted amount that you can contribute to the cost of attendance for the school of your choice. There are many who are reported as being able to contribute $0.

But note, I said this EFC is to contribute towards the cost of attendance. There are a lot more costs outside of that like travel to out of state schools, necessities for living arrangements, food, etc. The money you save can contribute to your preparation and sustainability throughout college. Even small amounts of money are a true blessing for any college student.

Aid

There are two forms of Aid: Free Aid & Burrowed Aid. The main difference? You guessed it, one you have to pay back.

Free Aid is everything from scholarships, grants, and donations. These are powerful and should be a top goal to make up a majority, if not all your associated costs.

Burrowed Aid is everything you have to pay back such as loans (federal - public and private and other private loans ie. Banks) These are offers that you can accept if you need additional funds. It’s important to have a plan on how to pay these back prior to accepting. All loans have interest rates that will cause you to owe more than you accepted.

Paying for College

Paying for College changes every year.

You may be able to contribute more one year than another or receive more aid than another. Even the cost of college can change every year.

One thing is certain, this formula will not change. So now that you know the formula, you can plan, be prepared, be proactive and be persistent.