Where to Get The Money for College

Hello. I'm Emma Gutierrez with Wells Fargo & Company. Today, we’re taking a look at the many ways you can pay for college and other educational costs. Deciding how to pay for a college education is an important financial decision. Since the cost of education continues to increase, you should plan ahead as soon as possible. The amount of money you’ll need for school depends on many factors: The school you choose, whether it’s public or private, whether you'll be completing a 2-year or 4-year program and whether you’re going to be living at home or at school. The total price tag can vary significantly. When comparing schools, you should consider more than money. If one school costs more than another, it doesn’t guarantee the quality of education will be better. Consider other factors, such as which school has the stronger program in your favorite subjects, which one has a better reputation, and which has the kind of environment you think you’d enjoy. Once you choose a school, you can determine how much money you’ll need to pay for the 2- or 4-year degree you want. It’s always a good idea to start saving for college as soon as you can. Parents impact their student’s financial aid in many ways. Their employers can be a source of education aid or scholarships. If parents served in the military, students might be able to take advantage of veterans’ benefit in the form of a scholarship. Most financial institutions across the country offer two U.S. government programs that allow adults to set aside savings for their children or grandchildren’s education. The first is an Education Savings Account and the other is a 529 Plan. Both Education Savings Accounts and State-Sponsored College Savings Plans are different than regular savings accounts. The account holder is actually placing money into investments. Instead of earning interest on their deposits, they make a profit if their investments go up in value. After savings accounts, the next place to look for college funds is grants, scholarships, and student loans – money you’re given, money you earn, and money you borrow. To quality for some types of financial aid, you may need to apply through the U.S. Department of Education with the Free Application for Federal Student Aid – the FAFSA. If you apply for financial aid, each school that accepts you for admission will send you a letter that lists how much of each type of financial aid you’re eligible to receive. The list may include grants, scholarships, a work-study program, and loans. A college degree can be expensive, but fortunately there are a lot of ways to get the funds you need to pay for it.