by Katerina Nikolas

Created on: October 20, 2010

The number of students planning to attend college is falling due to the rising debt burden of student loans, the increased costs of attending college, and financial difficulties within families. Whilst the federal government loan program is available for each student to apply for, students become ineligible if their parents won’t give details of their financial circumstances on the FAFSA application. Both the government and the colleges have a policy of expecting a family with the means to contribute to the cost of their child’s education, and if they refuse to participate in the application process then the student misses out on the opportunity to obtain federal funding.

If the student then turns to private loans as an alternative choice they are unlikely to receive one without a good credit history of a willing co-signer. Thus a growing number of students have to look to alternate ways to fund college or give up their hopes of achieving a college education.

There are other options though to financing college, through student scholarships and grants. States often offer grants to students who attend a college within the state, whilst scholarships are widely available and under utilized. The student should consult with the financial aid officer at their chosen college who will help to assist in tracking down grants which may be applicable to the situation.

Many colleges offer excellent financial aid packages, some paying full tuition. However most still require an FAFSA submission to determine a parents expected contribution.  It is worth researching the financial aid offered directly by the colleges. Universities such as Yale and Harvard do not offer merit scholarships, preferring to focus on financial need as their aid criteria. An unwilling parent may be willing to complete an FAFSA if it meant entrance to such a prestigious colleges. Some private institutions and charitable trusts offer interest free student loans which can be searched for on line.

There are a number of colleges which offer a free tuition package to all their students who in return work at the colleges to cover the cost of their education. Berea College in Kentucky and the College of Ozarks in Missouri both offer students with financial need the opportunity to work, but are popular choices.

Peer to peer financing provides another option for students to raise the necessary finance to attend college. Students can sign up to sites such as Prosper and request a loan, citing

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