Your first college bill (with charges listed for the fall semester) will arrive in mid-summer and will likely be due in late July or early August. Learn more about what to anticipate on the college bill. Though you may have some time until the bill due date, you should start creating a financing plan early on. Watch our Financial Aid Offers and the College Bill webinar for tips. As well, here are some of the different methods you can consider to cover your college costs. If you are like most families, you will use a combination of resources to pay the balance you owe.
Financial Aid
Financial aid can often provide significant assistance in helping you pay for college, so make sure you submit all financial aid applications required by the college before the deadline and follow up with the financial aid office to make sure you’ve met all requirements.
Private Scholarships
If the student has received any scholarships, report them to the college so they can anticipate receiving those funds. Many scholarship agencies will forward scholarship funds directly to the college billing office. And it’s never too late to search for additional scholarships. MEFA’s resource on private scholarships includes links to different scholarship search engines.
Past Income
Past income includes any savings you’ve designated for college costs, including 529 plans like the U.Fund and prepaid tuition programs like the U.Plan. Your U.Fund and other 529 plan savings are able to cover all qualified educational expenses as defined by the IRS, which include tuition, fees, housing, meal plans, books, supplies, and equipment. You may want to divide your college savings equally over all four years of college, or use more savings early on or later depending on other sources of existing and projected funds. Learn more about how to withdraw your U.Fund and U.Plan savings to pay for college costs.
Current Income
To help you pay for college with income you are currently earning, many schools offer interest-free monthly payment plans that allow you to split your bill into smaller, more manageable payments over several months. You’ll need to contact the college to find out how to sign up for the plan. Plans usually begin before the academic year, in May, June, or July, and can last anywhere from 9 to 12 months. You don’t pay interest when on a payment plan, but there is usually an enrollment fee (somewhere around $50 – $70).
Future Income
If you plan to borrow loans (and use future income) to pay for college, have your student borrow the Federal Direct Student Loan first by filing the FAFSA. Federal student loans have low interest rates, don’t require a credit check or co-borrower, and offer more flexible repayment options than private loans. If you’ve borrowed the Federal Direct Student Loan and still need additional financing, lenders who offer private loans like MEFA can help. Make sure to apply for a private loan at least two weeks before the bill deadline to give the lender and school enough time to process your application. Learn more about private loans and review our borrowing tips before you apply.
Keep in mind once you receive your college bill that you’ll still have some indirect (non-billed) costs to cover, such as travel, extra food, books, and other living expenses. Each college should provide an estimate of what the average student spends in indirect costs. Check the college’s financial aid or student accounting website or do a quick search for the Cost of Attendance on the college’s homepage to get a breakdown of direct and indirect costs.
