To pay for college, submit the FAFSA to access grants, scholarships and work-study before taking out student loans.

When paying for college, some forms of financial aid are better than others.

Money that you don’t have to pay back should take priority — like scholarships, grants and fellowships — followed by income from work-study programs, or even employer assistance if you can work while enrolled.

To keep college costs manageable, exhaust free financial aid before taking out student loans when planning how to pay for college.

1. Fill out and submit the FAFSA

Fill out the Free Application for Federal Student Aid to receive federal aid like grants, work-study opportunities and even federal student loans. You can also qualify for state-level and school-based aid.

Be as thorough as you can when filling out the FAFSA. The federal government uses this to gauge what resources you and your family have to pay for college. For example, if you or your parents saved money in a 529 plan — a state-sponsored tax-advantaged college investment account — you’ll be expected to tap into this to cover your costs.

Submit the FAFSA as soon as possible because some colleges award both need- and merit-based money on a first-come, first-served basis. In addition to the FAFSA, some schools also require you to complete the CSS profile to be considered for aid.

» MORE: How many colleges should I apply to?

2. Search for scholarships

You don’t have to wait until you’re a senior in high school to start your scholarship search. In fact, it could pay to start earlier. For example, the Evans Scholars Foundation awards full-ride scholarships to hundreds of golf caddies each year. But you have to be a caddie for at least two years to qualify, which means you’d have to start caddying during your sophomore year in high school at the latest to be eligible by the time you apply at the beginning of your senior year.

Scholarships, unlike student loans, don’t have to be paid back. Thousands are available; use the Department of Labor’s Scholarships Finder to get started. While many scholarships require that you submit the FAFSA, most also have an additional application.

» MORE: How to get a scholarship

3. Choose an affordable school

Paying for college will be easier if you choose a school that’s reasonably priced for you. To avoid straining your bank account, consider starting at a community college or technical or trade school.

» MORE: Is college worth it? How to do the math

If you opt for a traditional four-year university, research the school’s net price — the cost to you after grants and scholarships. This will show you your out-of-pocket cost instead of solely focusing on the sticker price.

For example, if a $28,000-a-year school doesn’t offer you any aid, and a $60,000-a-year college offers you $40,000 in aid, the school with the higher sticker price could be a better option because of it’s lower net price.

Schools have net price calculators on their websites to help you estimate the amount you’ll have to pay out of pocket.

» MORE: Why college students take on loans they can’t repay

4. Use grants if you qualify

The high school class of 2023 forfeited more than $4 billion in federal Pell Grant money by not completing the FAFSA, according to a study released in 2024 by the National College Attainment Network. 

Don’t make that mistake. As long as you submit the FAFSA and renew it each year you’re enrolled in school, you’ll receive Pell money if you’re eligible for it.

In addition to the need-based Pell program, the federal government offers several other types of grants, which also don’t need to be paid back in most cases. Many states have grant programs, too. Use the Education Department’s state education contacts and information locator to find the agencies in your state that administer college grants. Then look up and apply to state grant programs you may qualify for.

» MORE: Guide to grants for college

5. Get a work-study job

A college job checks multiple boxes: It provides an income, work experience and potentially valuable connections. The federal work-study program funds part-time jobs for college students with financial need.

To apply for work-study, submit the FAFSA. If you qualify, you’ll see “work-study” listed on your financial aid award. However, just because you’re eligible for work-study doesn’t mean you automatically get that money. You have to find an eligible work-study job on your campus and work enough hours to earn all of the aid you qualify for.

6. Work for an employer that pays for college

Nearly half of employers offer undergraduate or graduate tuition assistance, according to a 2022 survey by the Society for Human Resource Management, the latest research available.

A company can help you afford college by covering a percentage of costs, a flat amount, or even 100% of tuition. For example, you have access to more than 250 business-aligned programs from more than 40 schools, colleges and universities if you work at Target.

Employer tuition assistance programs can come in the form of tuition reimbursement — where you’re reimbursed for tuition you already paid — or the company can pay the school directly. Employer student loan repayment can help you pay off your student debt faster.

When applying to jobs, research what educational benefits they offer. And if you’re already employed, connect with the human resources department to see what is available for you.

» MORE: 11 jobs that will pay for college

7. Take out federal loans if you have to

You don’t have to say yes to all the aid you’re offered — especially student loans. As a rule of thumb, aim for student loan payments that don’t exceed 10% of projected after-tax monthly income your first year out of school.

If you need to borrow to pay for college, take out federal student loans before private ones. Federal loans have benefits that private loans don’t, including access to income-driven repayment plans and loan forgiveness programs. 

» MORE: What are your odds of getting student loan forgiveness?

8. Borrow private loans as a last resort

If you do need to use private student loans, compare your options before you choose a lender. Shop around to find the lender that offers you the lowest interest rate and the most generous borrower protections, such as flexible repayment plans or the option to put your loans in forbearance if you’re struggling to make payments.

It is also harder to qualify for private loans. Unlike federal loans, most private loans take into account a potential borrower’s credit score and finances. Borrowers with strong finances or those who have a co-signer with strong finances stand to get lower interest rates and more favorable loan terms. There are also private student loans designed for borrowers with poor or no credit.

» MORE: How is a student loan different from a scholarship?

Remember: After you leave school, you’ll have to pay back any money you borrowed. Many student loans — all but federal subsidized loans — accrue interest while you’re in school, which means you’ll have to pay back more than you originally borrowed. You can use a student loan calculator to see how much you’ll owe later based on what you borrow now.