The holidays are over and the new year brings a new semester. For many students, that means a new round of bills and education expenses. That means it’s a perfect time to evaluate your finances and make sure your budget is in the right place.
If you attended college in the fall, you may have relied on financial aid to help cover your education expenses. With a new semester about to begin, you may want to reconsider your options. Many students still owe a balance from fall semester. Meanwhile, others just realized they may need additional funding to help pay for the upcoming semester. Use this time to take stock of your financial resources and make a plan to ensure everything is covered.
Do you still owe a balance on outstanding charges from your fall semester?
You may be required to fully satisfy outstanding charges before you can complete your enrollment for the next semester. Make sure you take care of the previous balance as soon as possible. That way, you avoid any potential delays with your upcoming enrollment. If you didn’t have enough financial aid or personal resources to pay your prior semester’s bills in full, consider a private loan to help cover what you still owe.
Did you apply for financial aid either before or during the previous semester?
It’s always a good idea to apply for financial aid by completing the Free Application for Federal Student Aid (FAFSA®) form, even if you don’t think you’ll qualify. Not everyone qualifies for grants or other “free” money. But, you may qualify for federal student loans, like unsubsidized loans, which are not based on financial need. You can still complete the FAFSA form, even after the school year has started. It’s free and doesn’t take much time, so it’s worthwhile to submit. That way, you’ll know you’re not missing out on any financial aid programs.
What are your education expenses going to be in the upcoming semester?
By January, you should have an idea of your direct college expenses are for the upcoming semester. These education expenses including tuition, books, housing, and other costs. Do you have financial aid that pays for everything, or do you still have a gap where additional money is needed? Make sure you look at your full semester and anticipate all of your expenses. Set a budget so you’ll know exactly what your expenses are. Make sure to keep track of what types of income or financial resources can cover those expenses. Use all the financial aid resources available to you, including federal loans, to help pay your costs of attending college. If you still find yourself in need of additional money, you can explore the possibility of a private student loan and find a solution to help cover your college expenses.
When should you apply for next school year’s financial aid?
In case you missed it, you can now complete the FAFSA starting on October 1 for the following school year. You may only be halfway through this school year, but it’s already time to submit your FAFSA form for the next. With the earlier submission date for the FAFSA, it’s critical to get your application in as quickly as possible so you don’t miss any priority deadlines for state grant aid or other types of aid that may not be available if you apply too late.
Remember, now is the time to make sure you have everything in order for the current semester and for the next school year.
Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.