Tips for Finding Financial Aid through Private Programs

If you’re trying to figure out how to pay for college, the federal and state governments are not your only resources for financial aid. There are also quite a few private programs out there, ranging from grants and scholarships to privately issued student loans.  While you work on getting federal and state aid, here are some tips for finding financial aid through private programs.

1. Apply early and often for grants and scholarships.  The great thing about grants and scholarships is that they don’t have to be repaid.  Conversely, the problem with grants and scholarships is that there are so many options out there (and so many people applying for them) that finding the right ones for you can be an overwhelming task. The sooner you start researching and applying for grants and scholarships for which you might be eligible, the more likely you are to get funding from these sources.
2. Consider enlisting a third-party organization to help you. If time is an issue for you in researching grants and scholarships, there are trustworthy organizations out there that can help you find financial aid through private programs.  These organizations do the footwork for you, evaluating your circumstances and qualifications and matching you with programs for you which you might be eligible. Like any such service, there are some out there that do bad business, overcharging without doing what they claim; however, with a little homework, you’ll find some that are quite helpful, reasonable and reputable.
3. Check with your school’s financial aid office. Many colleges have in-house scholarships and/or grants for which you might qualify, but they won’t necessarily just offer them to you unless you ask about them.  Inquire whether there are scholarships available for your particular major, or for an athletic program, or for academic achievement for which you might be eligible.
4. Only take the student loans you need.  Remember, student loans aren’t free money; they have to be repaid at some point, and the more you take now, the longer it will take to pay back when you get out of school. Take care of as much funding as possible through grants, scholarships and personal contribution, and don’t accept more money than you actually need.
5. Only take private student loans as a last resort.  You can find plenty of financial aid through private programs in the form of private student loans issued by financial organizations and lending institutions.  However, private loans charge a considerably higher interest rate, and taking on too much private debt can bite you in the long run. Exhaust all other alternatives (i.e., grants, scholarships, federal/state aid) before taking private student loans.  Also, shop around for the best interest rate, and consider bringing on a cosigner for a private loan, as this usually increases your qualification and reduces the interest rate.