These are just a few of the many questions students and parents ask as they begin exploring how to fund a private college education. As daunting as it may seem, don’t get discouraged! There are many resources available to assist throughout the process, and colleges and universities are eager to help. First, it’s important that you and your family understand the costs of a private education and how to make paying for it a reality.
Understand cost of attendance vs. actual cost
When evaluating a college or university’s cost, you want to pay careful attention to the direct costs versus the indirect costs, and school websites often list both. What does this mean? Direct costs include tuition, room, board, and fees, the brunt of the cost of attendance. Indirect costs are items such as travel fees, supplies, and other personal expenses. You may want to consider creating your own budget for the indirect costs associated with college. Are you going to have a car on campus—and all the gas, oil changes, and maintenance costs that come along with it? Will you need to buy a computer before you head off to school? Can you take a short car trip home, or will you need to buy plane tickets? Colleges try to estimate these costs based on their average student, but the cost of attendance will be different for everyone. A college out of state or across the country will invariably cost you more in these indirect costs than a college across town!
As a result of the Higher Education Opportunity Act of 2008, all colleges and universities must have a net price calculator available to students on their websites. This calculator uses your personal information and institutional data to estimate what the college will cost you and your family based on your individual profile. These calculators can be extremely helpful in determining how much various colleges will cost and which schools are within your price range, so take advantage of them from the very beginning of your college search!
Related: 6 Questions to Learn How Much College Will Really Cost
Fill out the FAFSA
To be considered for financial aid, most schools require you to submit the Free Application for Federal Student Aid (FAFSA). The government also uses this form to determine your eligibility for federal grants and loans. The FAFSA generates a Student Aid Index (aka SAI; previously called the Estimated Family Contribution or EFC) based on documents such as W-2 forms, bank statements, and federal income tax returns, along with information about the number of people in your household. The SAI helps colleges assess your family’s ability to contribute to your education and can range from –1,500 to a high number. It is not the actual amount families are expected to pay; colleges use your SAI to determine your eligibility for financial aid.
Deadlines
Students and their families should submit the FAFSA as soon as possible after the form opens prior to the year in which they plan to enroll. While the FAFSA has traditionally opened on October 1 each year, it has been delayed in recent years (for example, to December for the 2024–2025 cycle). Most schools have priority financial aid deadlines, so be sure to check with each college to confirm when you need to submit your FAFSA. Additionally, many financial aid funding sources are limited, so the earlier you submit your FAFSA, the better. Finally, you and your parents will need to create an FSA ID to electronically sign your FAFSA.
Get an early financial aid idea
Luckily, it’s easy to get an idea of your financial aid eligibility before filling out the FAFSA. You can use the Federal Student Aid Estimator to estimate the federal aid you may receive. Colleges also offer Net Price Calculators on their websites that allow you to enter details such as tuition, scholarships offered, and personal financial information to help you get a more realistic picture of the cost of attending a specific school. The Federal Student Aid Estimator is a helpful tool for you and your family when making decisions about which colleges to seriously consider; just remember that it’s a calculator—not the actual FAFSA. Its calculations are not guaranteed, and you still need to submit the FAFSA to be considered for financial aid. Although the FAFSA is the most widely used application for student financial aid, some schools may require additional forms, such as the CSS Profile or their own institutional applications. Be sure to check each school’s financial aid requirements and deadlines to explore all available options.
Related: 5 FAFSA Tips to Get the Most Financial Aid
Types of financial aid
There’s more to financial aid than scholarships and loans. Need- and merit-based aid can take several different forms. When you receive your financial aid offers, you may see many different funding sources listed, including institutional scholarships (merit-based aid), grants, loans, work-study, or outside scholarships.
- Institutional scholarships are usually awarded based on students’ academic or extracurricular achievements in high school and are available to any qualified student regardless of financial need. Be sure to check with the college or university to understand the renewal criteria of the awards you receive. For instance, do you need to agree to participate in a sport or maintain a certain GPA to maintain the scholarship? Understanding the stipulations tied to scholarships will help you financially plan for all four years of college, not just your freshman year.
- Outside scholarships are everywhere, so don’t forget to look for them too. And start your search early! Check with your parents’ employers, your local parish, or any organizations you are a member of to see if they have scholarship funds. When you apply for these awards, pay careful attention to what they can be used for; some may only go toward tuition while others could be used to help pay for books or personal expenses.
- Work-study programs provide an opportunity for students to get on-campus jobs and earn money they can choose to contribute toward their education. Many schools offer either federally funded or institutionally funded work-study to students who have demonstrated need. Most campuses offer a wide array of jobs, from working in the library to assisting in the admission office. The number of hours you work per week will vary depending on the amount of your work-study award. However, funds earned are not automatically applied to tuition; you receive these earnings like regular wages and can choose how to spend them.
- Grants are generally need-based funds that don’t have to be repaid, and most colleges will require you to demonstrate need by filing a form such as the FAFSA or CSS Profile. It’s important to understand the funding source for the grants, as they could be federal grants, state grants, or even institutional grants. Like scholarships, make sure you inquire about the renewal criteria for any grants you receive.
- Student loans are also a reality for most students seeking a college education. The most popular and desirable loans available are offered through the US Department of Education’s Direct Loan Program. These college loans, which are part of a student’s financial aid award, offer a lower interest rate and have more favorable repayment terms compared to private lenders. But there are other loan options available too, such as state loan programs, Parent PLUS Loans, and private loans, so don’t hesitate to ask the financial aid office about these opportunities.
Related: 7 Things You Need to Do Before Filing the FAFSA
Talk to admission and financial aid officers
College and university admission and financial aid offices are there as a resource for you throughout this process. If you have questions, call the school or meet with a counselor for help. There may be other scholarships available, state programs, or additional loan options that aren’t considered with your applications for admission or financial aid. And don’t wait until the last minute to inquire about these additional funding sources; the earlier in the process, the more likely there will be options to explore. You may also want to ask the school about the average student debt and what their career placement rates have been over the last several years.
Many colleges can make a professional judgment regarding your SAI if your family meets certain special conditions or is experiencing a financial hardship. If your family is paying private secondary school or college tuition for your siblings, has suffered the death of a parent, or has experienced loss of employment, colleges may augment your financial aid offer. If your family experiences any other extenuating financial circumstances, be sure to let the financial aid office know and ask if there is any way to have those things considered. Contacting them as soon as any financial changes occur allows schools to adjust aid packages if needed.
Related: How to Talk to Admission Officers in Person and Over Email
Paying for a private college education can seem overwhelming at first, but don’t let the costs keep you from considering any school; you never know what type of merit- or need-based aid is available until you pursue it with tenacity and determination. After scholarships and financial aid have been awarded, many students find the cost of private school is very competitive with other colleges or universities.
Never forget that college is an investment in your future. Price should certainly be a consideration when choosing a school, but it should not be the only factor. You're also looking for a good return on investment, so also consider factors such as graduation rates, job placement, and earning potential after graduation. Even if it does cost you and your family more to attend a private university, there will be many worthwhile benefits. Small class sizes, access to professors, availability of career services, and a faith-filled community are just some of the things that students have recognized as setting a private school education apart from other colleges and universities.
Find more money to help fund your education by searching for awards with our Scholarship Search tool.
