Paying for college without familial support

Getting into a good college is demanding, but paying for it is worse. In the United States about ¼ of college tuition costs are covered by parental contributions. While the other ¾ come from different sources. The ¾ is what families usually focus on; a strong combination of scholarships, state-based grants, and loans can make paying student debts elementary. However, some students are put in the unfortunate position of not having contributing parents. If you fall into that category, don’t worry. There are viable solutions and alternatives at your disposal. First, understand how your parent’s income and assets factor into the calculation of your expected family contribution (EFC).

Parents influence on college

The first step is filling out the FAFSA. It takes into consideration your family’s income and assets to determine your family’s expected contribution towards college. This calculation is important because it determines how much aid you can expect. With a high EFC, don’t count on the aid too much help, but if you have a low EFC, you might qualify for the Federal Pell Grant and Direct Subsidized Loans from the government. However, this method is slightly flawed because it doesn’t take into account parents that are unwilling to contribute. You can become financially independent from your parents and seek out a low EFC, but it’s slightly unrealistic to do so. The criteria are as follows:

  • At least 24 years of age
  • An orphan
  • A veteran
  • A graduate or professional student
  • Married
  • A parent

If you don’t qualify for any of these criteria, then you will be considered dependent. This is a major downside since students who are independent can borrow $4,000 more on average. If you’re a dependent student whose parents aren’t willing to finance college, you’ll have to turn to other methods of doing so.

Paying for college without parents

The first essential item on our checklist is filling out the FAFSA. It doesn’t force parents to pay for college, but it allows you to demonstrate your qualification for certain programs and loans. It’s a great place to start to see what resources you have at your disposal. Even if you do qualify for certain programs, it’s still crucial to set your sights on a realistic school that can provide considerable amounts of aid. Cost should be at the top of your priorities when constructing a college list. You can use the DoE’s College Scorecard to compare colleges.

Secondly, it’s important to utilize all available resources and apply for any possible need- and merit-based aid. With a high EFC, you’re going to be primarily applying for merit-based; with a low EFC, you’re going to be primarily applying for need-based grants and loans. It’s vital to attempt to receive the most gift-aid (no need to pay back) because it will lessen the burden down the road.

Another peculiar strategy is taking a legitimate loan from your parents. There are firms that formalize these types of agreements; you can set your own terms for the loan and the interest rate. Another solution is making an informal agreement with your parents. You can promise to pay back the Federal Parent PLUS Loan in their name, but if you struggle with the payments, then their credit score will suffer.

A riskier solution is taking out private loans. Exhausting your federal loans and merits before turning to private loans is a rule of thumb. But what if your parents aren’t willing to be the cosigners? In order to secure a loan, you must have a good credit history, but this is unrealistic for an 18 year old. You can find a cosigner who is not your parent, but this is riskier. You should speak to your parents on finding a good fit.

Find the right payment plan and college

At the end of the day, it’s important to find a payment plan and a college that fits you. Many families and students make the mistake of forgetting cost when applying to college. They make commitments to pay back loans that they will struggle with in the future. Don’t set yourself up for failure, make sure to contact PlanKidsFuture to discuss strategies with professionals that tailor to you. There are a variety of methods that can ensure that you graduate with as a little as debt as possible!