Running out of financial aid is the last thing you want to worry about or plan for when you’re getting a college education. Still, it happens to many students during the course of their college careers.
Simply put, there isn’t enough money earmarked for financial aid to go around. Only certain people qualify for Pell Grants and there are federal student loan limits , which means it’s all too possible to run out of money.
If you’re reading this because you ran out of financial aid mid-semester, there are a few steps you can take to get back on track and make sure you have enough money to cover your remaining college costs.
Steps to take if you run out of financial aid:
Your first step should be to contact your school’s financial aid office as soon as you realize you won’t have enough funds to cover the rest of the semester. It’s okay if you’ve already maxed out your student loans or run out of financial aid; they can help you figure out the best option.
They may suggest you look into:
Unlike student loans, scholarships and grants do not need to be paid back. They’re free money designed to help college students pay for tuition or other education-related expenses. Here are some steps you can take to explore your options:
Keep in mind that many scholarships have application deadlines, lengthy review processes, and likely won’t be helpful in a pinch because it may take too long to receive money if you win one. Regardless, you should still apply for as many scholarships as possible in case one comes through during a future school year.
Juggling a full course load and a part-time job isn’t ideal, but getting a job or enrolling in a work-study program could help you offset some of your expenses.
See if you can find any job openings on campus or search local businesses nearby to see if any are hiring. Consider other revenue streams like freelancing online, tutoring, or picking up a side gig.
>> Read More: How to make money in college
No one likes asking for money, but if you’ve maxed out your student loans, run out of financial aid, and can’t afford your tuition, then you may need to consider this option.
Borrowing money from family or friends allows some flexibility because you can define repayment terms and avoid the high interest rates often associated with personal loans and credit cards.
If you decide to go this route, here are some tips to help you ask friends or family for money:
If all else fails, your final option would be to apply for a student loan to cover your remaining costs. Even though you’re in a bind, it’s important that you take the time to learn about how the loan will work and what it will cost you in the long run.
If you haven’t already maxed out federal student loans, you can likely still get one as long as you filled out the FAFSA before the semester started.
You may also consider a federal Direct PLUS Loan. If you are an undergraduate, you can ask a parent to apply for a Parent PLUS Loan. If you’re a graduate student, you’re eligible to apply directly for a Grad PLUS Loan.
As a last resort, you could look into private student loans. Private loans aren’t ideal because they typically have higher interest rates and carry fewer benefits than federal loans. However, you can most likely take one out in the middle of the semester if you’re eligible.
You will most likely need a cosigner with a good credit score to qualify, but you might be able to find some student loans without a cosigner.
You can learn more about how private student loans work and compare the best student loans with our guide.
The post What to Do When You Run Out of Financial Aid appeared first on LendEDU.
