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Paying for college can be one of the largest expenses a family can incur. Good thing there are many options available to assist you. Options available to consider:
Government and School Sponsored FundingScholarships and grants are "free money" options that do not have to be repaid. School sponsored work-study programs involve earning money either on or off campus during the academic year. Many scholarships, grants, and work-study programs are typically awarded to students who have demonstrated financial need as determined by the results of their FAFSA. As these options provide a debt-free way of funding all or a portion of your education, you should explore these options first.
Start searching for scholarships and grants using our Scholarship Search, which provides access to over 2.4 million awards worth over $15 billion.
Tuition Payment Plans:Tuition payment plans are an interest and debt-free way to spread tuition payments over several months. This option is best for families who have discretionary income that will cover all of, or a portion of, the gap between the cost of attendance and the financial aid received. When evaluating this option, consider that an enrollment fee or participation fee is often required. Compare this fee to the fee or tax implications of liquidating an asset or the interest associated with a loan.
Student Loans:Federal student loans are low interest, long-term loans for undergraduate and graduate students, which offers attractive repayment options including the ability to postpone payments if you are having difficulty during repayment. The Federal Student Loan program includes loans for both parents and students.
In addition, Citibank offers the CitiAssist ® Loan, an alternative loan designed to assist undergraduate and graduate students afford the school of their choice.
To learn more about the various student loans available, check out our Loan Products information.
Home Equity Loans:Many parents choose Home Equity Loans or second mortgages because they are readily available – assuming they have equity in their home and good credit. Home Equity Loans are tied to the amount of equity a home owner has in their property. The interest accrued and paid is typically deductible on a federal tax return. (Please consult your tax advisor for your individual situation.) Learn more about Citibank Home Equity Loans.
Assets:401K plans, stock portfolios, savings accounts, and IRAs offer a debt-free option for funding education. Before liquidating an asset, consider the earnings that you'll be foregoing as well as any associated fees or penalties. Then, compare the lost earnings to the interest that would accrue on a student loan or the fee on a tuition payment plan.
Credit Cards:This option is typically not the best choice for students or their families as interest rates on credit cards tend to be high. If you have exhausted all other less expensive possibilities to fund your education, Citibank offers a range of flexible and personalized credit and charge cards. Find the Perfect Card for You.
Next Steps:
Free Application for Federal Student Aid (FAFSA)
is the single most important form that is required to initiate the financial aid process.
For the steps required in this process check out FAFSA and SAR.
Expected Family Contribution (EFC) is a term you will hear often when
researching financial aid options. The EFC is how much
your family is expected to contribute toward college costs. The result is based on data
such as income and assets, and the number of family members as provided on
the FAFSA. Check out the Sample Financial Aid Package page
for more information on how your EFC is used by the school.
Financial Aid Options - Financial aid opportunities abound.
The key is, knowing where to look. To explore your options, visit our
Financial Aid Options page.
