Top 7 Ways to Pay for College

Paying for college can feel overwhelming, especially as tuition and living expenses continue to rise. For many families, it’s one of the biggest financial challenges they’ll face. The good news is that there are multiple ways to cover the cost of college, and many of them don’t mean taking on debt.

Whether you’re just starting to explore your options or looking to fill in funding gaps, here are seven key ways to pay for college, and how to make the most of each one.

1. Scholarships: Free Money Based on Talent, Need or Interests

Scholarships are one of the best ways to pay for college because they don’t need to be repaid. They’re awarded for all kinds of reasons, such as good grades, community service, athletic talent, artistic ability, financial need or even your background or hobbies.

Types of scholarships include:

• Merit-based (academic or performance-based)

• Need-based

• Athletic

• Special interest or identity-based (such as minority scholarships or scholarships tied to specific majors)

You can find scholarships through:

• High school counselors

• Local community groups or employers

• National databases like HESC’s Scholarship Finder that curates quality opportunities to help pay for school

Pro Tip: Apply early, follow instructions carefully and tailor each essay (if required) to fit the specific scholarship criteria.

2. Grants: Need-Based Aid You Don’t Have to Repay

Like scholarships, grants are free money, but they’re usually awarded based on financial need rather than academic or athletic performance.

• Common grants include:

• Federal Pell Grants

• Federal Supplemental Educational Opportunity Grants (FSEOG)

• State and Local Grants

To apply, complete the Free Application for Federal Student Aid (FAFSA). Some state grants may also require additional applications, like the Texas Higher Education Coordinating Board’s grant programs.

Remember: Most grants require students to maintain satisfactory academic progress, so keeping your grades up is important.

3. Work-Study Programs: Earn While You Learn

Federal Work-Study is a program that lets students earn money through part-time jobs, often right on campus. These jobs are designed to fit your class schedule and help you cover personal expenses.

Jobs may include:

• Campus library or office assistant

• Research lab help

• Tutoring or peer mentoring

• Community service-related roles

To be considered for these opportunities, check the “work-study” box when you’re filling out your FAFSA, then contact your school’s financial aid office to learn about available positions.

Bonus: Work-study jobs give you valuable experience to include on your resume plus great opportunities to grow your network.

4. Student Loans: Borrow Wisely and Understand the Terms

Student loans can help cover gaps in your financial aid package, but they must be repaid with interest.

There are two main types:

• Federal student loans, such as:

  • Subsidized loans: Government covers interest while you’re in school.

  • Unsubsidized loans: Interest starts accruing immediately.

• Private student loans, offered by banks, credit unions and non-profits like HESC.

If you need to borrow:

• Try federal loans first.

• Only accept and borrow what you need.

• Learn your repayment options and who your loan servicer is.

Before you borrow, you’ll be required to complete entrance counseling to understand your responsibilities. How and when you repay loans impact your financial future, so ask questions to make sure you understand the expectations.

Visit HESC’s Financial Literacy Center for more guidance on responsible borrowing and repayment.

5. Savings Plans: Prepare Early and Reduce Future Debt

If you’re getting a jump on future college plans, 529 college savings plans and Education Savings Accounts (ESAs) grow tax-free when used for education. Each plan has different benefits, and it’s possible to open both a 529 and an ESA for the same child. But start early––the sooner you invest, the more time your money has to grow tax free.

6. Employee Perks: Tuition Assistance Benefits

Some employers offer tuition assistance as a benefit to their employees. Check with your or your parents’ employers to see if they offer any type of tuition assistance program. Every employer will have different rules, but look on your company benefits portal for “education benefits” or “tuition reimbursement” or contact the human resources department directly.

After graduation when the job hunt begins, seek out companies that offer this enriching benefit. It can save you thousands later if you decide to go to graduate school or pursue certifications in your field.

7. Financial Aid Packages: Your Personalized Mix of Support

Colleges typically offer incoming students a financial aid package that combines several types of aid, including grants, loans and work-study opportunities, based on your FAFSA and the school’s Cost of Attendance (COA).

When comparing offers from multiple schools, review each package carefully and consider:

• Grants: What portion is free money?

• Work-Study: What portion is earned?

• Federal or Private Loans: How much must be repaid?

If you have special circumstances like job loss or medical bills in your family, you may be able to appeal for more aid. Plus, most colleges offer monthly payment plans, letting families pay tuition in smaller installments over time. Contact the school’s financial aid office for guidance.

Your College Planning Starts Now

The key to paying for college is being proactive and exploring every available option. For most students, no single source of funding will cover it all, but when you combine scholarships, grants, work-study, loans and savings, funding your education can be manageable.

Start early. Stay organized. And always ask for help when needed.

Explore more college planning tips at HESC’s Financial Literacy Center or check out this College Preparation Checklist before getting started.