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Time English (United States) Language 2 Action
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You have to take out student loans. All financial aid is free money.
00:09
There aren’t many options to pay for college.
00:11
If you live in the US or are attending an American school,
00:14
you may have heard things like this when it comes to funding your college education,
00:17
and it can be hard to know what’s true and what’s not.
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Hi, I’m Erica Brozovsky and this is Crash Course: How to College,
00:23
a Study Hall series presented in partnership with Arizona State University.
00:26
Today? We’re talking money.
00:29
[INTRO MUSIC PLAYS]
00:36
No matter what kind of school you’re considering,
00:38
understanding the costs can make the process of paying for college more manageable.
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Fortunately, on their website all schools will have the total cost of attendance,
00:45
which is an estimate for all the expenses a student will have to pay for each academic year
00:49
including both direct and indirect costs.
00:52
Direct costs are all the expenses you pay directly to the school,
00:55
like tuition for the credits you need to complete your degree,
00:58
which can cover a wide range of things. You'll probably have to pay
01:01
building maintenance fees, technology fees, wireless fees, fees for health services–
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a lot of schools even charge you to support the athletic program.
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And depending on what you choose, your direct costs can
01:12
also include your dorm room and meal plan.
01:13
Most colleges require you to pay these costs before you can attend classes.
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Just remember: if you don't live on campus, you generally don't get a meal plan!
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But there are also indirect costs,
01:24
which are pretty much everything else you need to be a student,
01:26
like books, internet service, and software programs.
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Depending on where you live, these can also be travel expenses, like gas,
01:32
vehicle maintenance, and parking or public transportation fees.
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In case that’s confusing, there’s an easy way to keep track of it all:
01:38
direct costs are the things that will appear on your bill from the college,
01:41
and indirect costs are everything else!
01:42
As we mentioned in earlier episodes,
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some schools require freshmen and sophomores to live on campus,
01:47
in the dorms, while juniors and seniors have an option of where to live.
01:50
If you're an adult, returning student,
01:52
you often are given an exemption to living on campus, even if you're an under-classman.
01:55
For whatever reason, if you're not living on campus,
01:58
you need to be prepared to cover your living expenses.
02:00
These will include housing, food, utilities, and, if you have kids, childcare–
02:05
although check with your college for help on that last one.
02:08
Many offer before and after-school childcare to help parents stay in school.
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And to help you make sense of it,
02:12
here's a brief overview of how costs compare between living
02:15
on and off-campus at different kinds of colleges.
02:17
You may be surprised to learn that, in most cases, students who live on campus pay less
02:22
for additional expenses like transportation, entertainment, and personal care
02:26
than students who live off-campus.
02:27
The numbers depend on where you live and whether the school is public, private, or for-profit.
02:31
And while these expenses vary based on your own unique situation,
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these figures can give you an idea of what to expect.
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After all that budgeting and spreadsheeting,
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that total cost of attendance can look like a really big number.
02:42
But there are so many ways to find financial aid to help pay for college
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[-- and none of them are even following every rainbow you see to find a magical pot of gold!]
02:46
First off, we can consider federal financial aid, which is kind of an umbrella term
02:50
for several different options funded by the US government.
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For instance, federal financial aid includes need-based federal grants,
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which are awarded based on financial need and don’t need to be repaid.
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Federal financial aid can also include federal work study,
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which is a government funded part-time job designed
03:04
specifically to help both part-time and full-time students pay for school.
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While most federal work study jobs are on campus,
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some jobs are off-campus at organizations the college partners with.
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If you plan to enroll as a distance learner or online student and want to know
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whether a federal work study job is an option for you,
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check with the college you’re interested in.
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To receive a need-based federal grant or be eligible for federal work study,
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you have to complete a Free Application For Student Aid,
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otherwise known as a FAFSA.
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You’ll need to complete the FAFSA for every year that you’re enrolled in school
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and want to receive federal financial aid.
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Lots of students don’t complete the FAFSA because it requires a lot of information
03:36
from you and often your parent or guardian,
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but it also opens the door to so many other ways to pay for college…
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and is the only way to qualify for federal grants and loans!
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For instance, loans are money you borrow to pay for a product or service up front
03:50
with the expectation that you will repay the loan at a later date.
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And if you complete the FAFSA, you may be eligible for federal student loans
03:57
which often come with lower interest rates than private or bank-based loans.
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These include subsidized loans, unsubsidized loans, and graduate PLUS loans.
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Each one has its own benefits and requirements.
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Like with subsidized loans,
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the federal government pays your interest while you’re in school,
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which can save you money over time.
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On the other hand, the interest rate on an unsubsidized loan builds up over time.
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Parent PLUS Loans can also help students pay college costs.
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Although not required to,
04:22
parents can apply for this loan option if the financial aid that has already been awarded
04:26
does not cover all your costs.
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If they do apply and are denied, you’ll be eligible for unsubsidized loans
04:32
to cover additional expenses.
04:33
Private loans are also an option for paying for school
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and are based on your credit history rather than financial need.
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However, it’s important to note that private loans often come with higher interest rates
04:42
than federal loans and may require you to have a cosigner.
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Some private loans, like those offered by credit unions, are more affordable.
04:49
We often hear about student loans and how difficult they can be,
04:52
but there is no shame in taking out a loan to pay for college.
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And if you stick with us here on Study Hall,
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we’ll help you succeed throughout college so you can graduate,
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get a job, and hopefully not struggle to pay off those loans.
05:01
And in addition to federal financial aid and loans
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you can also round out how you’re paying for college with scholarships,
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which are another type of financial aid that you don’t have to pay back.
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Some scholarships are need-based,
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which means the amount for which you are eligible is dependent
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on your or your family’s economic status.
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Others are merit-based, which means they’re awarded based on your academic achievement.
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And there are also scholarships granted
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based on socioeconomic or demographic circumstances,
05:26
like income-based scholarships or scholarships meant to encourage people
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of underrepresented identities to go to college.
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Scholarships are amazing opportunities for you to earn money
05:34
for school that you don’t have to pay back.
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But that also means that you have to plan ahead to earn them
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so that you can submit a well-rounded application and stand out from the crowd.
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The same is true for institutional aid,
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which is any money the college gives you directly
05:47
whether that’s merit-based or need-based aid.
05:49
You can get institutional aid by applying,