4 Tips to Help Pay for College

July 01, 2010, By Taurus Londoño 1 comment

While going to college might seem like a pricey prospect, it's an investment that will eventually pay off. The problem that many guys face is how exactly to pay for that degree in the first place.

Don't put off applying for college just because you're intimidated by how to pay for it. Likewise, don't let worries about student debt distract you from your job hunt. Before you can achieve the successful career you deserve, paying for college is the one bitter pill you're going to have to swallow. Although the cost of your education ultimately falls on your shoulders, these tips might help make paying for college a little easier.

Financial aid ain't free ... or is it? Unless you're a trust fund kid or you make decent money, financial aid is mandatory. While most guys will end up relying on student loans, you might just qualify for grants as well. Grants are a form of financial aid that you don't have to pay back. Depending on where you live, your state might have a variety of student grants available. Not everyone is eligible to receive these grants, which are typically given out based on your income level. Even if your state doesn't offer grants, you might be eligible for a federal Pell grant. The government's official financial aid website is a must for all guys planning for college.

New tax credits can help. Tax credits can ease your tax burden, helping you use that money for college instead. If you're currently enrolled in college, you might qualify for special deductions that will be taken off of your income tax. One new tax credit is the American opportunity credit. As long as you're enrolled at a college, university or in any other post-secondary education, this tax credit can be claimed for up to four years for a maximum of $2,500, but is reduced once you hit $80,000 for a single tax return or $160,000 for a joint return. You might also qualify for the lifetime learning tax credit, which applies to up to 20 percent of a maximum of $10,000 in tuition and costs.

Don't forget scholarships. There are plenty of scholarships that are up for grabs without strict academic requirements, as long as your grades meet the minimum standard. In many cases, a 2.5 GPA might be all you need. The great thing is that you can still apply for and receive scholarships, even if you're midway through college courses. There are a variety of scholarships, from community-based ones to those offered by special-interest organizations and even local businesses. Consider searching for scholarships via Collegeboard.com and other websites, but beware of sites that try to scam you into paying for access.

Your degree and your debt: Now what? Chances are you'll rely on student loans, either federal or private, to pay for at least some of your education. Luckily, there are ways you can deal with debt once you graduate. If you used federal direct student loans, you can create an account at the government's official direct loan website. There, you'll have the option to choose from several repayment plans, including the income contingent repayment option (ICR). This plan annually adjusts your minimum payment according to your current income level, which might make things easier if you haven't landed a lucrative career right out of college. If you find yourself in particularly tough times, you can also choose income based repayment, although you must prove at least partial financial hardship to qualify.