Some of you are looking forward to family vacations, final weekends with friends before going to different campuses in the fall, or enjoying some casual down time (or maybe all of those things). But the summer also brings with it the college bill.
The College Bill – Here’s What You Need to Know
- Know what you owe. Each college bill looks a little different. Read carefully to be sure you understand how much you owe now and how much you will have to pay back in the future. Scholarships and grants are “gift aid” that you don’t have to pay back. Loans and work study (if listed) are “self-help” aid that you’ll earn as you go or pay back later. Your amount due is what’s left after both kinds of aid are subtracted from your total cost. There’s a variety of options for covering this gap, including savings, outside scholarships, and private student loans.\
- Borrow smart. If borrowing, it may be a good idea to borrow the amount needed for the full year – not just the billed term. Why? If you apply for funds in the fall and again in the spring, you’ll get hit with multiple hard credit pulls, which can impact your credit score. When you apply for funds for the full year, the college will set up how much to have disbursed for each term and when those disbursements should happen. And don’t worry, interest won’t accrue until the funds for that particular disbursement have occurred.
- Understand the due date. If you’re paying your bill with a credit card, check, or funds transfer, make sure you pay by the due date set by the college. If you are using a private loan to pay the bill, the college will likely want to receive certification from your lender by the due date. During certification, the school will set the disbursement date(s). On average, it can take around two weeks from the point of applying to a loan being sent for certification. You will want to account for this timing to avoid any potential late fees from the college. If you have a loan application or method in process and you are approaching the due date, simply notify the college so they are aware of your intended method and potential completion timeframe.
Find more helpful tips on planning and paying for college from our partners at Granite Edvance at www.graniteedvance.org.
