Paying for College in 2021
By Jody Bell
Leaving home for college has always been difficult.
Beneath the excitement of additional freedom, growth, and new opportunities, is a young adult who is making one of the biggest decisions of their life.
But now, with a raging pandemic, financial hardships, and daunting unemployment rates, the decision to attend college is made even more difficult. Whether you chose to attend college this coming fall is a decision that only you and your family can make. That being said, if you’re anything like me you have a raging passion inside of you, and questions about yourself and your place in the world that you know college will help answer.
So, if you know that college is right for you, despite the craziness of 2020, here are our tips on putting together the beginnings of a financial plan that will have you prepared this coming fall.
Where Do I Even Start?
Completing the FAFSA should always be your first stop to financially tackling your college education.
FAFSA stands for “Free Application for Federal Student Aid” and is a system of allocating government aid towards students in need of financial support. Based on your application and financial need, you will most likely receive a combination of loans, work-study programs, and/or grants. Outside of this, many colleges will require you to complete the FAFSA to be even eligible for their institution-specific aid (including merit-based scholarships).
You will need to complete the application with your parents/guardians ‒ inputting their income tax returns, W-2’s, and other information about your families’ earnings.
The FAFSA application is already open, and while it isn’t due until June, aid is given out on a rolling basis ‒ so start as soon as possible!
Are Loans the Right Option?
While it may be scary to go into debt ‒ especially following the hardships of 2020 ‒ historically low-interest rates make it a great time to take out a loan for college.
Once you have filled out the FAFSA, you will most likely qualify for some form of federal loans ‒ subsidized, unsubsidized or a combination of the two. For unsubsidized loans, interest accumulates directly after you receive the payment; in subsidized loans, there is a delay in the accrued interest to account for your time studying. If you financially qualify, opt for a subsidized loan because you will end up paying less over time.
The interest rate on both loans has dropped to 2.75% for the 2020-2021 school year (compared to 4.53% from the previous year). So, if you hope to go to college but are reliant on loans, now is the best time to lock in these low-rates and take advantage of the unexpected opportunities that 2020 has brought forth.
How Do I Take Advantage of My Institution-Specific Aid?
One pro-tip is to make a connection with the regional admission officer in your area right after you have been accepted.
These officers will be more than happy to speak to you, so try to schedule a student financial aid interview. Explain that the school is your #1 choice and interview for their merit scholarships.
Many students think the process has stopped once the admission letter arrives ‒ truthfully that’s exactly where the journey starts.
Schools are now getting creative with work-study programs, scholarships, and other innovative ways to customize a financial aid package for you; once you speak to an admissions officer, they can make recommendations on your behalf to the financial aid office.
With just a little bit of additional work and creative thinking, your ticket to additional funds could be a zoom call away.
What Do I Do If the FAFSA Doesn’t Provide Enough Support?
If you are looking at your FAFSA package questioning how you’re going to piece together a payment plan for college, don’t worry ‒ there are other options!
It’s important to note that the FAFSA uses income information from the previous year ‒ for the 2021-2022 year they will be collecting 2019 information. For many families, 2020 brought many changes that might not be shown and thus reflected on your FAFSA package. Colleges and universities are aware of this and have various appeal processes that will allow you to make your institution aware of your circumstances. Usually, these appeals are also partially merit based, and they are looking for unique students who are distinguished from their peers. Programs like Girls With Impact, and the projects/businesses you’ve created in the program, should most definitely be highlighted in your appeals.
Contact your financial aid office to discuss how their process works, as it is usually institution specific.
Outside of this appeal process, there are thousands of scholarships available to students who are in need. These range from departmental scholarships at your institution, to grants that are offered by third-party organizations simply aiming to support students.
While this is truly just a starting point, there are plenty of resources out there that can help you create a more detailed plan. Hopefully, these steps give you the motivation to know that despite all the craziness, attending college this coming fall is within reach if you employ the right resources.
Jody Bell (19) Girls With Impact’s Chief Editor and a program graduate. Girls With Impact is the nation’s only online, after-school, entrepreneurship program for teen girls, turning them into tomorrow’s business leaders and innovators.