College Funding

Applying to college can be one of the most stressful times for any high school student. It is usually the first time in their lives where they get to make a decision directly affecting their futures. It is also usually the first time most kids get to fill out tons of paperwork and encounter the administrative bureaucracy of the adult world. The application process of gathering all the necessary recommendations, taking the standardized exams, and sending out transcripts is a no small task and can take weeks to complete.

However, no part of the process is as stressful for the students and their parents as what usually follows the acceptance letter, and that is covering the cost of tuition. The price of a good college education is often very substantial and may appear to be unaffordable to many families. However, before one discards a school of their choice because of its price, one should always first examine the available funding options such as college grants and scholarships, and student loans.

College grants and other scholarships can often be very successful way for alleviating some of the financial burden generated by college tuition. While the common belief is that such grants and scholarships are only reserved for the best students, it would be unwise to follow this assumption. While it is correct that the over-achieving students are often the first in line for the general scholarships or the grants given directly by the accepting university, there are plenty of scholarship opportunities currently available to the lower ranked students. These can vary from grants from large private institutions supporting students in specific majors, to scholarships provided by charitable organizations supporting different ethnic groups. Currently, there are plenty of available options, and any college student looking for funding should be able to find several they can apply for.

Another popular way of covering tuition is getting a student loan. However, students loans should always be considered after applying for grants, scholarships and any state or federal financial aid. These loans can range from federally subsidized Stafford loans, offering very low interest rates, to the ones offered by private institutions at high interest, which should be considered the last resort. Before any student decides to apply and eventually accept such loan, they should closely examine all the risks. All loans eventually result in additional interest that has to be covered by the borrower, and if both the loan amount and the interest rate are high, it might prove to be very difficult to pay it back after graduation. Some student loans cannot be defaulted on even in the event of borrower's bankruptcy. The default on such loan can result in the federal government garnishing one's wages to collect on loan debt. However, student loans still serve as an excellent way of covering the substantial cost of college tuition.