How do students pay for college

Department of Education reports that there are roughly 3, participating post-secondary institutions offering work-study on or off-campus. Borrowing money is also one of the most common methods of paying for college. Federal loans, which are issued by the government, are categorized into two types for undergraduate students: direct subsidized based on financial need and direct unsubsidized loans not based on financial need.

They offer a low fixed interest rate and flexible repayment options. Federal student loans do have annual and lifetime limits, putting a cap on how much you can get through federal loans alone. These are provided by banks, credit unions, and private lenders.

Apply Now. Figuring out how to pay for college will look different for every family. Tip: Only two types of aid actually cut college cost: grants and scholarships.

The other forms of aid, loans and work-study paid employment , must be repaid or earned. Colleges may offer merit aid as an incentive to enroll.

This aid is based on academic performance or other talents, and not on financial need. Other sources of merit-based aid include outside scholarship providers, employers, and service organizations. Merit aid and scholarships can be great ways to pay for college. Tip: Ask colleges about their "outside scholarship" policies. Some colleges reduce the aid they award by the amount of scholarship aid received from outside sources. Look for affordable colleges with track records of generous merit aid, high four-year graduation rates, and low rates of graduate debt.

Tip: The cheapest college is not always the best choice. Always take college fit into consideration. An inexpensive college might not offer the same career or educational opportunities, or have limited classes available which can lengthen the time it will take to graduate. Get inexpensive college credit through AP testing and community college courses. Enroll in public service programs, such as the ROTC, which cover some college costs. Research the process in your home country to learn more.

Both public and private schools offer financial aid for international students. However, the funding availability varies depending on the school and the student's degree level. For instance, many programs fund assistantships or fellowships for graduate students but offer fewer financial aid opportunities for undergraduates.

Many schools offer need-based or merit-based scholarships for international students who meet specific requirements. Research scholarship opportunities through your prospective college or university. International students can research financial aid through their home country.

Many foreign governments offer programs that grant money to citizens pursuing a college degree in the U. In addition, many foreign companies and organizations provide funding to international students. Several international organizations offer financial support for international students. Many prospective students find funding through international organizations listed in scholarship databases like the IIE database of grants, scholarships, and fellowships for international students.

Eligibility requirements and selection processes vary depending on the organization. Many international students also research funding opportunities from organizations in their field of study. Many professional organizations, for example, offer scholarships and grants for students, including international students. International students qualify for multiple scholarship opportunities, including specialized scholarships for international students and scholarships open to all students regardless of their U.

These scholarships can fund a portion of an undergraduate or graduate degree. Private foundations, professional organizations, and businesses offer scholarships to help international students pay for college. Many schools also offer scholarships to admitted international learners. This list introduces some scholarship opportunities available to international students. Many prospective students also look for scholarships to attend college in the U. Some international students pay for college with their own money or with financial support from their family.

These students use college savings accounts and income to pay for their tuition, fees, and living expenses. For example, many students work while in school to help cover their tuition costs. However, student visa rules often limit employment opportunities. Many students who choose to pay with their own money also apply for grants and scholarships to cover the cost of their degree.

However, international students cannot apply for the federal financial aid program. As a result, international students typically rely on private loans to pay for college.

Banks, financial organizations, and schools all offer private student loans. Each lender sets different terms for taking out a loan. Private student loans typically cost more than federal student loans, and they do not offer the same protections and benefits.

Prioritize scholarships and grants and consider private loans last. Before taking out private student loans, carefully research the following concepts to make the best choice:. When borrowers take out loans, they agree to pay interest on the principle or original loan amount. A higher interest rate often adds thousands to a loan. When researching interest rates, calculate how much of the monthly payment goes toward the principle versus paying off interest.

Interest rates on private loans range from 1. Reputable financial institutions help international students pay for college, but scammers often take advantage of students. Look for red flags like a high interest rate, a loan that provides more money than the student needs to pay for school, or a very high monthly payment.

Though securing the funding needed to attend school in the U. By strategically using all the options available, you can find ways to make an American education more cost-effective. Explore Programs. Paying for School. Sure, the financial aid system is complex and tuition gets more expensive every year. But the good news is that parents aren't footing the entire bill themselves. In fact, nearly half of students received some kind of scholarship last year, according to a new survey from Sallie Mae.

For most families, that free money covered a significant amount of the bill. There are three main funding sources families draw on to cover the cost: scholarships, income and savings, and loans. Each source covered roughly one-third of the bill for tuition, fees, and room and board. Luckily, the largest source of money was scholarships and grants -- which do not have to be paid back.