Back-to-School Savings That Could Be Worth Thousands
As families prepare for a new school year, most of the focus is on back-to-school shopping, classroom supplies, and extracurricular activities. While finding savings on school essentials is always helpful, there may be an even bigger opportunity on the horizon: scholarships and financial aid that can help reduce the cost of higher education.
With college expenses continuing to rise, planning ahead can make a meaningful difference. As of 2022, the average cost of tuition and fees at an in-state public college or university was nearly $24,000 per year, and costs at private colleges and universities were even higher. Understanding the different types of financial aid available can help families prepare and identify opportunities to potentially save thousands on future education expenses.
Understanding Scholarships
Scholarships are typically awarded based on either merit or financial need. More than 1.7 million scholarships are awarded each year, but only about one in eight students receives one. While that statistic may sound discouraging, there are a wide variety of scholarship opportunities available. Some are highly competitive and offer substantial awards, while others are less competitive and provide smaller amounts that can still help offset educational expenses.
The key is starting early and taking the time to research available opportunities.
Don't Overlook Federal Financial Aid
Scholarships are only one piece of the financial aid puzzle. Students may also qualify for federal student loans, grants, and work-study programs.
The first step in determining eligibility is completing theFree Application for Federal Student Aid (FAFSA). FAFSA is used by the federal government, states, colleges, and other organizations when awarding financial aid.
Families should remember that FAFSA must be completed each year and submitted by the applicable school's financial aid deadline or, at the latest, June 30.
Merit-Based vs. Need-Based Scholarships
Many colleges and universities offer merit-based scholarships to supplement federal financial aid programs. Eligibility requirements vary by institution and can include factors such as:
- Academic performance and grades
- Standardized test scores
- Athletic achievements
- Artistic talents
- Geographic location
- Intended field of study or major
In addition, corporations, foundations, and civic organizations frequently offer merit-based scholarships that may be worth exploring.
Need-based scholarships, on the other hand, are awarded based on a student's financial circumstances. Financial need is generally determined through information provided on the FAFSA. Colleges use this information, along with expected family contribution calculations and other financial aid considerations, to determine the types and amounts of aid for which a student may qualify.
Start Planning Early
Whether you're preparing to send a child to college in the near future or simply keeping an eye on long-term education goals, the financial commitment can feel overwhelming. The good news is that planning ahead creates opportunities to build savings, explore scholarship options, and maximize available financial aid programs.
This back-to-school season, consider adding scholarship research and college funding discussions to your family's checklist. A little preparation today could lead to significant savings tomorrow.
As always, contact our office if you have questions about education funding, college planning, or strategies for helping manage future education expenses.
Additional Resource: College Board College Costs FAQ
https://bigfuture.collegeboard.org/pay-for-college/college-costs/college-costs-faqs
This material is for educational purposes only and is not intended as tax, legal, or financial aid advice. Scholarship and financial aid eligibility requirements vary by institution and program.