How to Pay for College
6 Min Read | Last updated: May 20, 2026
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Explore ways to pay for college, including scholarships, grants, student loans, and financial aid programs to cover tuition and expenses.
At-A-Glance
- The Free Application for Federal Student Aid (FAFSA®) can help give students access to various types of financial aid opportunities for college.
- Grants, scholarships, work-study programs, and loans can help you to cover college costs.
- You can also lower your costs by starting at a community college, buying used textbooks, and graduating on time or even early.
Paying for college can seem like a daunting task, but it doesn’t have to be. There are many ways to pay for college today, including numerous financial aid options available to students and their families. In this article, we’ll outline various strategies for financing a college education, empowering you to make informed decisions and pursue your academic goals without breaking the bank.
Applying for Financial Aid
To apply for financial aid, you should fill out the Free Application for Federal Student Aid (FAFSA®).
The FAFSA can open doors to a variety of financial aid options and should be the first step you take when looking for financial aid.
When it comes to filling out the FAFSA form, the U.S. Department of Education recommends that you start by creating a StudentAid.gov account. All contributors (that is, anyone who is required to provide information on the FAFSA form) are required to create a Student.Aid.gov account as well.1 When filling out your form, you may need to provide information such as your verified account username and password, parent or spouse contributor name, their date of birth, Social Security number, email address, and income and asset information. The department estimates that it takes most people 30 minutes to fill the FAFSA form.2
Ideally, you’ll want to fill out your FAFSA as soon as it becomes available. It’s best to complete your FAFSA as early as you can to help ensure you don’t miss out on opportunities for financial aid.3
To learn more about deadlines, visit the Federal Student Aid Website, page: Steps for Students Filling Out the FAFSA® Form.
Several of the common types of financial aid that can help you pay for college include:
- Grants
Grants are usually offered based on financial need. If you receive a grant, you don’t have to pay it back.4
With federal and institutional grants, you will be considered for aid when you submit your FAFSA.5 However, you may find additional grants from your state. To find state grant programs, you can visit the Department of Education’s website and use the State Contacts tool to find the agency that distributes each state’s grants. In order to be eligible for grants, most states will require you to fill out the FAFSA, but some states may have a separate form in addition to the FAFSA.6 - Scholarships
As with grants, you don’t have to repay scholarships. Some scholarships are need-based while others are merit-based and distributed based on factors like academic or athletic achievements.7
Some scholarships require you to first submit the FAFSA.8 You may also be able to find additional scholarships by contacting the financial aid office at the school you’re planning to attend or conducting research online.7 - Work-Study
The Federal Work-Study Program provides jobs to qualifying students so they can make money to cover college expenses. Filling out the FAFSA form is the only way to be considered for Federal Work-Study programs.9 - Federal Student Loans
Federal student loans are offered by the federal government. They may come with perks like flexible repayment plans and student loan debt forgiveness programs.10 However, most of them have borrowing limits, meaning you may not receive enough money to pay for your entire college education.11 In order to get a federal loan, you’ll first need to complete the FAFSA form.10 - Private Student Loans
Private student loans come from private lenders, such as banks and credit unions. While you may be able to borrow as much as you need with a private student loan, you may also need to meet certain credit requirements, which may be difficult to do. Private student loans may also have higher interest rates than federal student loans.12
Did you know?
You should start researching and applying for scholarship programs when you’re between your junior and senior years in high school, allowing you to start the financial aid process early.7
Saving for College
If you’re planning ahead for college, you can also take the proactive approach and save for college.
Fortunately, there are a variety of college savings tools available. One option is using what’s known as a 529 plan. A 529 plan allows for tax-free growth and withdrawals for tuition, room and board, books, and other education-related expenses.13 Other options you might want to explore include brokerage accounts and savings accounts. A high yield savings account is another option you’ll want to consider. These accounts typically offer a higher yield than many traditional savings accounts and may help you grow your money faster.14
Ways to Lower College Costs
Even if you have a plan to pay for college, you’ll still want to take steps to keep your costs down. Here are some tips that can help you minimize college expenses.
- Start at a Community College
Community colleges tend to be more affordable than four-year colleges and universities, offering lower tuition costs and often a lower cost of living as well. To save some cash, you can begin your education at a community college.15 After gaining your associate degree in two years, you can transfer to a four-year college or university to finish your degree. Just be sure to check that the four-year institution that you plan to finish at will accept credits from your community college.15 - Buy Used Textbooks
It may be convenient to buy the textbooks you need for your classes at a bookstore on campus. However, you may be able to find more affordable prices by buying them used online or through other students who sell them after they’ve completed the course. - Be Responsible With Student Loans
To save money, do your best to only borrow what you need to cover your college costs and living expenses. Overborrowing so you can upgrade your lifestyle can quickly lead to more debt, so make sure you prioritize and budget carefully while you’re studying. - Graduate on Time or Even Early
Graduating late means you could end up paying more for your overall college education. Try to be as efficient as possible and graduate on time. Even better, consider graduating earlier by earning class credits in advance if this is an option that’s available for you. - Consider Tuition Reimbursement Programs
Some employers may offer tuition reimbursement programs. If you happen to be employed by a company that offers this after you graduate or while you’re still in school, you could be reimbursed for part of or all of your college education.
Did you know?
In addition to looking for ways to keep your costs low, you can also work on building your credit while you’re in college. Having a strong credit history may help you to qualify for financial products, like a car loan or apartment rental, down the road.
Frequently Asked Questions
With subsidized loans, the federal government covers interest while you’re still in college and during the six months after graduation. This offers a measure of flexibility for recent graduates who may be job hunting after graduation and may need additional time before they start making interest payments. With direct unsubsidized loans, you are responsible for paying interest during all periods.11
There are a few tax credits available to help offset college expenses. These include the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC), both of which can help to reduce the amount of tax that you owe.16
To apply for federal grants and scholarships, you’ll want to start by visiting the FAFSA website or looking at scholarships offered by the school that you’re planning on attending.
- For Scholarships: Some scholarships will require you to first submit the FAFSA form. However, you may be able to find additional scholarships by conducting research online. You may also want to contact the financial aid office at the school you’re planning to attend.8
- For Grants: With federal and institutional grants, you will be considered when you submit your FAFSA form. However, for additional grants, you’ll also want to consider local organizations, membership associations, and charitable foundations, which may provide links to available college grants on their websites. You can use the Department of Education’s State Contacts tool to find the agency that distributes each state’s grants.
Make sure you validate the authenticity of scholarships and grants before you apply.
The Takeaway
There are a variety of different ways to pay for college, such as grants, scholarships, work-study programs, and loans. In addition to these financial aid options, you can also take steps to help keep your costs low while you’re studying.
1 “Completing the FAFSA® Form: Steps for Parents,” Federal Student Aid
2 “Federal Student Aid (FAFSA),” Federal Student Aid
3 “3 FAFSA® Deadlines You Need To Know Now,” Federal Student Aid
4 “Federal Grants for College or Career/Trade School,” Federal Student Aid
5 “Free Application for Federal Student Aid (FAFSA),” U.S. General Services Administration
6 “FAFSA® Application Deadlines,” Federal Student Aid
7 “Federal Student Aid - Scholarships,” Federal Student Aid
8 “Get Scholarship Help With These Basics and Tips,” Federal Student Aid
9 “8 Things You Should Know About Federal Work-Study,” Federal Student Aid
10 “Federal Student Aid - Loans,” Federal Student Aid
11 “Federal Student Aid: Subsidized and Unsubsidized Loans,” Federal Student Aid
12 “Choosing a loan that's right for you,” Consumer Financial Protection Bureau
13 “529 Plans: Questions and answers,” Internal Revenue Service
14 “What Is a High-Yield Savings Account?,” Experian
15 “Community College Transfer,” Community College Research Center
16 “Education credits - AOTC and LLC,” Internal Revenue Service
Anna Baluch is a personal finance writer from Cleveland, OH. She enjoys helping people from all walks of life make smart financial decisions. Her work can be seen on Credit Karma, Forbes, LendingTree, Insurify, and many other publications. Connect with Anna on LinkedIn.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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