Yahoo Finance 3 Things To Do This Summer If You Need Another $5,000 For College in Fall
ScholarshipOwl recently surveyed nearly 10,000 high school and college students to gauge their financial situations before the 2024 academic year. The results show that most students’ financial needs have not been met by a combination of loans, grant and/or scholarship awards.
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Just over half of students — 56% — said they don’t have any money to cover the total cost of attendance this fall. Nearly as many respondents — 49% — indicated they have half or less of the funds they need. A mere 2% of students said they’re fully covered.
College students have a few options when it comes to funding their academic costs. This includes federal or state grants, in-house scholarships, federal loans and federal work study programs. But there are ways to get extra cash, too.
GOBankingRates spoke to a couple of financial experts about what future or returning college students can do to get another few thousand dollars for college this fall. Here’s what they suggested.
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Get a Part-Time Job
The ScholarshipOwl study found that 15% of respondents plan to rely on income from a job to cover the rest of their college funding needs.
For returning students, this could mean getting an internship or other summer job that ties into their intended major. For newcomers, it might mean taking on an hourly gig that can net them a few thousand dollars by the end of the season.
“There’s nothing like having some extra money for textbooks, pizza and other expenses that come with college life,” said Scott Lieberman, the founder of Touchdown Money. “During the summer, if you’re not taking classes, you have plenty of opportunities to build up some savings with a summer job.”
Since summer generally lasts around 10-12 weeks for college students, doing something that can earn around $400 to $500 a week can get them to that $5,000 goal.
Here are a few options Liberman suggested:
Work as an event staff member. “This only works if you’re located near a major city, but you can help out with parking, crowd security, tickets and more at shows,” he said. “This can earn around $30 an hour, so this can really add up for larger events.”
Become a tutor. “You’re in college, so you’ve got knowledge that high school students need. Helping out high school, middle school and elementary school students can earn around $15-20 per hour,” said Lieberman. You’d need to work around 20 hours a week to earn enough money.
Babysit. “Parents of elementary school children still have work obligations during the summer. They also happen to have kids at home, which means they’ve got to figure something out. With an average rate of $20-25 per hour, you can easily top $500 a week,” said Lieberman. Similarly, you can become a pet-sitter for busy parents or housesit for those taking summer vacations.
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Ask for a Family “Loan”
Asking for money from a loved one can be stressful, but if you’re short $5,000, it might be your best option.
According to American Consumer Credit Counseling, an estimated 93% of those surveyed said they’d be willing to lend money to a family member in need. Only 8% of ScholarshipOwl’s survey respondents said they’d be willing to ask their parents or other family members for financial support.
Family “loans” are generally much cheaper than private student loans, particularly when that family member doesn’t charge interest on the amount borrowed. You also won’t have to worry about lengthy applications or credit score requirements to get a loan.
If you do ask for money, be very clear about your terms. Tell your relative exactly how much you need — $5,000, in this case — and what it’s for. Make sure everyone is on the same page about repayment, too.
It’s possible that your family member won’t expect to get the money back, but it’s safer not to assume. If they do want it back, be prepared to work out a payment plan with them that you can realistically follow.
Apply for Scholarships
According to ScholarshipOwl, 15% of high school and returning college students plan to use college or university scholarships to bridge the gap between other funding and their college expenses. Only 11% of respondents said they’re using external or private scholarships, which could be a major missed opportunity.
“Apply to outside scholarships, which are those from community organizations, companies and chambers of commerce,” advised Jack Wang, a wealth advisor/college financial aid advisor at Innovative Advisory Group.
“While a student may not win very many scholarships, the payout on a per hour basis can be good,” Wang continued. “For example, a student may spend 10 hours applying to scholarships and win only one $250 scholarship. That still translates to $25 per hour, which is probably far greater than what they could earn working part time.”
If you haven’t been applying for scholarships from your school, make sure you do that, too. When you’re looking at spending tens of thousands on academic costs — or more — every little bit helps.
Be Aware of Your Institution’s Policies and Aid Limits
Earning extra money in the summers between academic years is great, but only if it doesn’t hinder your ability to get the other financial aid you need. If you get a job, Wang said to watch out for the FAFSA limit.
“A student can earn up to $11,100 before student earnings would negatively impact aid; each $1 above that limit can reduce aid by up to 50 cents,” said Wang. “Earnings are measured on a calendar year basis, so earnings over the summer and during the school year would count.”
Be aware of your school’s financial aid policy on outside scholarships, too.
“Most colleges have a scholarship displacement policy, which means that the more outside scholarships a student receives, the less aid a college will give,” said Wang.
“Some colleges will reduce their own scholarship money while others may reduce loans or a work study requirement. Know the policies so you’re not hurting yourself by applying for outside scholarships.”
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This article originally appeared on GOBankingRates.com: 3 Things To Do This Summer If You Need Another $5,000 For College in Fall
