Articles - Archived Expert Advice

College Financial Aid

After graduating from high school 30 years ago, I'm now ready to obtain a college degree. I received a financial aid letter from my college of choice, but the amount I've been offered is not enough to cover my expenses. What are my alternatives?

Congratulations on your new endeavor. Alternatives to federal student loans are private student loans, which fill the gap when financial aid is not enough. Private loans are offered by financial institutions, colleges, foundations and state agencies. Although private loan rates are usually higher, they are still lower than most unsecured lines of credit. Creditworthiness is a requirement of private loans, so it's a good idea to address any credit issues before applying. Some lenders use your credit score to determine your interest rate. Your college may recommend private lenders, but you are not required to borrow from them. Shop around.

Consider discussing your situation with a financial aid officer at your college. They may be able to guide you toward options offered through the college. Some colleges offer tuition payment plans, which include deferred payments, monthly plans or prepayment of four years of tuition. If this isn't available at your college, seek recommendations of other companies that provide these services. Some companies may charge, so be certain you understand the plan before signing a contract.

Scholarships are another alternative that can help fund all, or part, of your tuition, books, living expenses or other financial needs. Visit the College Foundation of North Carolina's website at www.cfnc.org and take advantage of their scholarship search tool. Also consider your Credit Union. Each year, LGFCU awards 120 one-year scholarships to graduating high school students and post-secondary students. Applications are available at www.lgfcu.org/plan, and the deadline always falls around the first of February (see application for specific dates).

No matter which alternative you choose, remember you're investing in your future. Obtaining a college degree is an accomplishment that will provide many opportunities for years to come.