You Can—and Should—Avoid Massive Student Debt

Most students reading this post will already understand the benefits of a college education. Monetarily, the median earnings for a bachelor’s degree are on average 84 percent higher than than those whose highest degree is a high school diploma. However, it’s still a good idea for students to minimize the cost of their college education when possible. Careful financial planning can help students avoid graduating with massive student loan debt.

FAFSA and CSS Profile 

Most students will apply for financial aid using The Free Application for Federal Student Aid (FAFSA) to access federal grants, loans, and work-study opportunities. We recommend filling this out as soon as possible to maximize your chances of receiving aid. 

Many private colleges and universities require the CSS Profile, which is a more detailed financial aid application provided by the College Board. It dives a bit deeper into a family’s financial situation and can award students with additional institutional grants and scholarships. 

University-Specific Scholarships

The only way to know what scholarships are available to you is to do your research. This is why establishing your school list early is so important—many of these scholarships have early deadlines, and they often require essays or lengthy applications. Many colleges provide merit-based scholarships, need-based grants, and specialized scholarships for particular majors, talents, or demographics. If you’re struggling to find these on the school’s website, don’t hesitate to reach out to the university’s financial aid office to ask about scholarship opportunities. 

External Scholarships

In addition to university-specific scholarships, students should explore external scholarship opportunities that are granted by organizations outside of a specific college or university. Students can start seeking external scholarships as early as 9th grade in many cases, but it’s important to make sure you identify trustworthy sources to avoid phishing scams or revealing your personal information to bad actors. If a scholarship requires a processing fee, it’s best to avoid it. 

The College Board has a source for scholarship-seekers called BigFuture, a free online resource that helps students explore careers and finance their college education.  Students can also reach out to their high school guidance counselor to ask what scholarship opportunities exist. The U.S. Department of Labor’s free scholarship search tool is also a great resource that students can use when seeking external scholarships. In addition to merit, students can consider seeking scholarships specific to their identity: race, ethnicity, gender, religious affiliation, or disability. Some other resources include Scholarships.com, Going Merry, Scholly, Raise Me, and Fastweb. 

Weigh Your Options

If you are currently a senior trying to decide what college you should attend, we encourage you to consider your financial situation when making your decision. If you’ve been admitted to a prestigious university without aid and a less competitive college with a large financial assistance package, it can be tough to make your choice. Our advice is to consider the opportunities available at both institutions and explore financial aid opportunities at the selective college before you make your decision. If there are scholarships that you could apply for as a freshman, and you believe the opportunities at this selective college will offer you a better path to success in your career, it’s worth making a four-year plan for both schools to appropriately weigh your options.