Applying for the Free Application for Federal Student Aid (FAFSA) is the first step any American student should take in his college payment process. The FAFSA enables a student to apply for federal aid; he can decline accepting and applying for federal student loans and instead request work-study funding or grants---both of which don't need to be paid back.
When filed, the FAFSA will determine a student's estimated family contribution (EFC), which is based on income and parental status. If the student's family doesn't have the means to fund his education, the FAFSA lets colleges know that the student needs financial help in the form of scholarships and grants.
According to American Public Media, community colleges are a reasonable option for students who can't afford high loan prices. Community and state colleges are usually a low-cost alternative to higher-priced private schools; many community colleges will even help students find creative ways to pay for tuition. Students can discuss payment plans with the financial aid office at each college.
A student who's facing payment difficulties should always talk to the financial aid department at his college. If the student is currently enrolled in school, or even before he enrolls, he should sit down with the financial aid director or a student adviser and discuss the possibility of obtaining grants. Colleges often have grants for students in need; grants are usually awarded based on academic merit or financial need.
Combining a scholarship with a grant and an affordable payment plan may help cover the price of a modestly priced college. Scholarships are available both from schools and private resources. A student can ask a college financial aid officer about scholarships at that particular school; scholarships are usually given to students based on academic merit, nationality, major-based interests and need, among other criteria.
Scholarships are awarded to students who apply through the school itself or privately. Fastweb.com is one such site where students can browse through a list of potential scholarships.
A student who attends a modestly priced college may opt to pay for tuition out of pocket so that she doesn't have to pay off loans in the future. When filing the FAFSA, she can request work-study funds. According to Fafsa.ed.gov, the federal work-study program provides jobs to students, allowing them to earn money that they can use to pay educational expenses. The college receives the money from the government and pays the student for working an on-campus job. The student can ask for the payment to be put directly toward her tuition.
A student can also get a job outside of school, since other jobs may pay higher salaries than those found on campus. The student can then set up a payment plan with the college and pay for her tuition out of pocket instead of paying off loans.