Lazarius Miller deserves an A in dodging debt.
The first-generation college student, who’s cut living costs as a resident assistant and scored multiple scholarships, is on track to graduate debt-free from Michigan State University next year.
“I really wanted to not restart the cycle of poverty,” says Miller, who comes from a low-income background. “If I can find a way to not take out any loans, period, then I’m going to try.”
Miller is not alone among low-income students when it comes to his debt aversion. “I do think we scare our low-income families with the student debt conversation,” says Nicole Hurd, founder and CEO of College Advising Corps, a nonprofit program advising low-income, first-generation and underrepresented students to and through college. “In reality, they’ll have all sorts of scholarship and grant opportunities.”
While there’s nothing wrong with attending a low-cost school, students should know that their low-income backgrounds don’t have to close the door to pricier, more selective institutions. In fact, those students may qualify for federal, state and institutional need-based aid not available to their more affluent peers.
Here are three tips students from low-income backgrounds should keep in mind in order to strategically fund college.
[See which colleges and universities claim to meet full financial need.]
— Apply, apply, apply: Filling out the required aid paperwork is a necessary — if cumbersome — hurdle for low-income students. “Anything involving an application process is a barrier,” says Rachel Fishman, senior policy analyst for the Education Policy Program at the New America Foundation, a policy think tank.
But filing the right forms is a crucial step for securing most kinds of aid, from need-based grants to federal loans, typically starting with the Free Application for Federal Student Aid.
For example, families earning less than $60,000 per year have a shot at landing a federal Pell Grant, says Sandy Baum, a senior fellow in the Income and Benefits Policy Center at the Urban Institute. But in order to earn this money, which doesn’t need to be repaid, they must file the FAFSA. “You have thousands of dollars on the line that you’re leaving if you don’t fill it out,” says Baum.
One thing to watch out for: companies charging for help filing the FAFSA or finding scholarships. “We have a lot of snake oil in our space,” says Hurd. Instead families can head to the federal FAFSA help line or the institution at which they’re applying for advice at no cost.
[Know your risk factors for delaying graduation and accumulating more debt.]
— Look beyond sticker price: Schools with a hefty sticker price may soften the financial blow with their own need-based grants, scholarships and other financial resources available to low-income students.
“People hear that some colleges are really expensive and think, ‘I can’t afford that,'” says Baum. “The reality is that more expensive colleges are more likely to give more of their own money to help students pay.”
One way to get an estimate of how need is met at an individual institution is to use a net price calculator, which should be available on every college’s website. From that starting point, students can get a sense of whether their financial background qualifies them for any need-based assistance.
[Check out more ways to save on college costs.]
— Consider other variables: Of course, price is a huge factor, especially for low-income families. But don’t make it the only piece of the college decision process, say experts.
Many students say, “‘I’m only going to College X because I’ve looked at the price, and that’s the most affordable college for me,'” says Fishman, of New America. But knowing that money is available based on need “introduces choice,” she says.
Students may want to weigh the academic options and cultural offerings of a range of schools. They might reconsider transferring from a two-year college to a four-year university if the costs are the same for both, after aid. And they should analyze any aid packages or scholarships to ensure that the funds will cover four years of costs, not just one.
One important factor to weigh is graduation rate, which points to how successful a college is at getting its students out the door in four years. Graduating on time reduces borrowing and speeds a student’s entry into the workforce.
While low-income students will have to do some extra legwork to negotiate the cost of college, it can pay off. Miller, the Michigan State student, gives this advice to college-bound students from low-income backgrounds: “Reach out to the people that you don’t normally see on campus,” he says. “Go to the financial aid office.”
Trying to fund your education? Get tips and more in the U.S. News Paying for College center.
More from U.S. News
Weigh the Benefits, Drawbacks to Living at Home During College
Why Public School May Not Be the Cheapest College Option
Students Speak Up About Their College Jobs
What Low-Income Students Need to Know about Paying for College originally appeared on usnews.com
