College tuition costs continue to rise, outstripping the rate of inflation year in and year out. Add in room and board, fees, books, labs and related expenses and the annual cost of a private school education can easily top $30,000 even pushing up closer to $50,000 at select elite schools, far beyond what most families can afford.

The good news is that just like buying a car, the listed price isn’t what you’ll end up paying, particularly if you cannot afford the school. As automakers discount their products, most schools do the same even if they have many more applicants to choose from should you decide to go elsewhere.

But, before you decide to throw up your hands in disgust and consider Plan B, make sure that Plan A has been exhausted. Specifically, you’ll want to do the following:

Fill Out Your FAFSA – The Free Application For Student Aid (FAFSA) form should be filled out by all prospective and current college students to determine whether you’re eligible for student aid. This form is sent to the federal government which issues a Student Aid Report (SAR) which is sent to your college. The SAR will have your Expected Family Contribution (EFC) featured, an amount that can be much smaller than what the going rate is for college.

Get Merit Aid – Families who have too much money to qualify for student aid can still get assistance especially if your student is a high achiever and has a promising academic track record. Top grades means you have much academic potential – some schools recognize ability as an important reason to extend assistance.

Grants, Not Loans – When seeking assistance, you’ll want to get as much grant money as possible (which doesn’t have to be repaid) instead of relying upon loans (which can strap your student down financially for many years). Some colleges and universities are no-loan schools who offer grants to eligible families. This list includes select elite schools including most Ivy schools and private institutions such as Swarthmore and Amherst.

Think Diversity – If you are of an ethnic minority or of an under represented gender, you may find that you could be eligible for aid (or a better aid package) simply for being who you are. Colleges value diversity and will do whatever it takes to populate their student body with as diverse a group of people as possible.

Instead of worrying about how you will pay for college, consider the many ways you can get lop off thousands from the sticker price. Don’t forget to apply for scholarships which can be another way to get the money you need to pay for your education – more than seven billion dollars of college scholarship money is made available each year: get your share and reap the educational rewards!

Tags: college grants, college scholarships, college tuition, FAFSA, Free Application For Student Aid, merit aid, Student Loans

Illinois college students got some very good news over the weekend.

No, it wasn’t the Fighting Illini’s 47-21 Saturday gridiron thrashing of in-state rival, EIU, rather it was the Sunday decision by eight credit unions to join with two state agencies to create a $100 million aid fund for students.

Overcoming The Current Credit Crunch

The fund was established to help students who are currently having difficulty getting credit to obtain student loans in the face of tougher borrowing restrictions imposed by lenders as a result of the current economic climate. As many as 20,000 students are expected to be helped through the fund, especially those with low incomes.

In a prepared statement, Illinois Governor Rod Blagojevick said, “This financing package will enable thousands of students to attend college this year, knowing they can pay their tuition.”

Students who need additional funding assistance can also ask their parents to apply for a PLUS loan or apply for help from Sallie Mae. PLUS loans allow parents to borrow as much as 100% of college costs which includes tuition, room and board, books, and related fees.

Speaking of Football…

Getting back to football, Illinois’ pounding of EIU was just the right medicine the team needed following its 52-42 opening week loss to #6 Missouri.

Last week, Illinois was able to keep pace with Missouri, but they still yielded 549 yards, not quite as bad as the 633 ceded to USC in a 49-17 Rose Bowl drubbing last year, but still a major concern. On Saturday, the Illini still gave up well over 400 all purpose yards to EIU, but with Louisiana-Lafayette next up, the team will have an extra week to pound a weaker opponent, letting Juice Williams rack up additional yardage and scores while giving the defense a chance to get everything right before the team embarks to Happy Valley on September 27th to take on the Nittany Lions.

(Source: State of Illinois)

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Tip – Is a lack of money keeping you from finishing your college education? Consider Federal Pell Grants which never have to be repaid or a work study program offered through your school. Upperclassmen can sometimes find work as a professor’s assistant while private student loans and Stafford loans offer ways for you to borrow money which can be paid off after you graduate.

Tags: credit unions, Illini, Illinois, PLUS loans, Rod Blagojevick, Sallie Mae, student aid, Student Loans