7 Ways to Help Finance Your Financial Aid Gap

Have you checked student finance for next semester? If you haven’t checked, now is the time to do so. That way, if you’re facing a financial aid gap, you still have some time to find a way to collect some money. If you waited until the last minute, you may want to consider private student loans. However, we hope that private student loans are a last resort.

So go ahead and check your loan funds for next semester. Do you have enough funds or are you lacking? If you have enough to cover the next term’s fees and other school expenses, great! If you don’t, here are some things you can do to help bridge your financial aid gap.

7 Ways to Help Finance Your Financial Aid Gap

1. Apply for a scholarship.

Scholarships are available throughout the year. Organizations prepare scholarships at different times of the year, each with different deadlines. It is always a good idea to research and apply for scholarships regularly even if you have significant funds from student loans. Scholarship award money is free and you don’t have to pay it back, which makes it a great source of free money for college. Yes, you should spend time researching opportunities and putting together a solid app.

Start by searching for scholarship opportunities online, but don’t stop there. Expand your search by exploring local newspapers, your school’s bulletin board, and even local bulletin boards. Many local companies offer scholarships to help students in their community.

Apply to a mix of major and minor scholarships. Larger scholarships can offer a bigger prize but are also more competitive and harder to win. On the other hand, smaller scholarships are less competitive and easier to win. Small grants can dramatically increase and reduce loan fund gaps over the course of a year. The most important thing is to ensure that all scholarship applications are sent before their respective deadlines.

2. Ask about tuition payment plans.

Many colleges offer tuition payment plans for students who cannot afford to pay tuition fees in advance. These plans allow students to spread tuition costs over multiple payments throughout the year. Cutting costs can take the stress out of paying your college tuition bill in one big payment. This helps you optimize your payments budget while giving you time to collect more money between payments. Best of all, you don’t have to worry about late payment fees if you can’t afford the lump sum.

3. Start a part-time job.

Yes, it can be difficult to juggle work and study but you can do it. All the money you earn means you’ll need to take on less student loan debt. When you graduate with less student debt, you’ll feel glad you worked so hard.

If you are awarded a federal work study, use that money because it comes to cover some of your semester expenses. If you are not offered a federal work study, talk to your school’s financial aid office and ask about part-time jobs on campus. If none are available, look for part-time jobs off campus. Fast food places always require part time employees and this is a great place to start.

Freelancing is another great way to make some money if you run out of loan money for the next semester. With freelancing, you can take on tasks that best suit your strengths and skills. The best part is that you can do as much or as little work as you can handle.

4. Ask for a reassessment of your circumstances.

When you file a FAFSA (Free Application for Federal Student Aid), your financial aid eligibility is calculated based on your family’s financial situation. If your family’s finances have changed since filing your FAFSA, you may be eligible for more federal financial aid. This could be due to several conditions. Parents may have lost their jobs or have decreased income. Divorce or separation also changes your eligibility for financial assistance.

If your family’s finances change, talk to your school’s financial aid office and ask them to recalculate your eligibility. You will need to provide documents that support your application. The Office of Financial Aid will not proceed without proper documentation indicating a change in financial circumstances.

5. Check your eligibility for additional federal student loan funds.

Regardless of family circumstances, you may qualify for additional federal student loan funds. Your school’s financial aid office will be able to assist you with this. Before you talk to them about getting more student loan money, make sure you’ve exhausted all other options, including scholarships and part-time jobs. You do not have to repay money earned through scholarships or work. But you have to pay off student loans with interest.

Even if you qualify for additional federal student loan money, only borrow what you need for your college expenses.

As a last resort, your parents may be able to get a PLUS direct loan. This is a type of federal student loan that only parents can apply for on behalf of the college student. The advantage of these loans is that there is no limit to the amount your parents can borrow. The downside is that these loans carry high interest rates, so use this option wisely. Borrow only as much as you need and no more.

6. Consider asking for family assistance.

Family members are usually very supportive and will be more than happy to help if you prove yourself responsible and reliable. Talk to them about needing more student loan money for the next semester.

It also helps to spread it out and let family members know that you want to receive cash gifts once in a while. This amount can increase or decrease the amount you need to borrow in student loans.

7. Apply for a private student loan.

Finally, private student loans can help you bridge the financial aid gap and secure your funds for the next semester. These loans certainly help but may come with higher interest rates and more stringent terms. You can get a lower interest rate if you apply with a cosigner.

If you are interested in obtaining a private student loan, it is important that you take the time to compare lenders, their rates, and loan terms. These vary widely between lenders and you want to make sure that you are not paying an unnecessarily high rate.