ON THE MONEY > LIBRARY > LIFESTYLE > PAYING FOR COLLEGE
Budgeting for this Major Milestone
The Basics
Paying for college doesn’t have to mean decades of debt. With a solid budget, smart funding strategies, and good financial habits, you can navigate college costs without feeling overwhelmed. Remember, financial wellness in college isn’t about being perfect; it’s about being intentional. The earlier you start, the fewer “I’m broke-broke” texts you’ll be sending later.
The College Budget
Before you decide on where to pursue higher education, you should know the total cost, including those late-night meal runs and rideshares. Here’s what to factor into your college budget:
Fees and Supplies
Tuition and fees is the biggest chunk of college expenses and varies widely depending on the school and your residency status. With this, you can also spend a pretty penny on your required textbooks and supplies per semester.
Living Expenses
Whether you're living on-campus, off campus, or at home, housing and food can add up fast. Also think about how you will get around. Commuting, gas, parking, or even public transit passes should be included in your budget.
Personal and Social
Personal expenses such as laundry, entertainment, clothes, phone bills, takeout, and more should be considered with your overall budget. As well as any extracurriculars you want to take part in, such as Greek life.
Pro tip: Add a buffer of at least 10% for unexpected expenses. There’s always something; like a surprise lab fee or replacing a broken laptop. If you have a list of colleges in mind, you can start planning your budget by calculating the school’s actual net price. Net price is the amount that a student pays to attend an institution in a single academic year after subtracting scholarships and grants the student receives.
How to Fund College
Once you know the numbers for college, the next step is figuring out how to pay for it. You may end up using a mix of sources, relying on financial aid completely, or paying for it one semester at a time all on your own. The sources you use depend on your personal financial circumstances.
Scholarships
Scholarships are essentially free money. They don’t need to be repaid and are awarded based on things like academic performance, sports, community service, or unique personal traits. Don’t be afraid to apply for as many scholarships as you can. Some of the other ways you can find them are through your high school counselors or local organizations, researching them online, and college financial aid offices.
Redstone Federal Credit Union offers scholarships for students attending its partner schools. Click here to learn more.
FAFSA and Federal Aid
Filling out the Free Application for Federal Student Aid (FAFSA) is your entry point to need-based grants, federal loans, and work study programs.
Grants – Like the Pell Grant, which doesn’t need to be repaid.
Subsidized Loans – The government pays the interest while you’re in school.
Unsubsidized Loans – You’re responsible for interest from the start.
Work-Study – Part-time campus jobs that help you earn money during the school year.
Private Loans and Other Aid
If there is still a gap after scholarships and federal aid, you may consider:
Private Student Loans – Other resources to help cover remaining education expenses.
Parent PLUS Loans – Eligible parents may be able to borrow federal funds to help cover education costs.
Payment Plans – See if your institution offers a plan to spread costs over time.
Part-Time Job – Help cover everyday expenses and reduce the amount you need to borrow.
How to Manage Your Finances During College
Track Spending – Use free budgeting apps like Mint or your Redstone mobile banking app to keep tabs on your money. Review your bank statements regularly so you know where your money is going and where you can cut back.
Find a Flexible Job – Work-study programs or part-time jobs help you earn money without sacrificing too much study time. Side hustles like reselling vintage on Depop or editing TikTok videos for creators can help you cover your weekend activities and build your resume.
Avoid Unnecessary Debt – Sometimes debt is inevitable, but our blog about Personal Finances has some great tips about avoiding or reducing it. Prepare now with a secured credit card in the event you need some emergency cash later so you don’t get caught with a high-rate or fee loan.
Use Student Discounts – Need music to study or focus? Spotify Premium Student is available for $5.99/month and includes access to Hulu (with ads) plan. There are countless other student discounts available just like that. Always ask, “Do you have a student discount?”
Additional Resources
Redstone's Scholarships
Whether you're a high school senior, already in college, or heading back to class, this is your chance to get the support you need.
The Basics of Personal Finance
Mastering your personal finances can be empowering, helping you build a secure future to live the life you want.
Understanding Credit Scores
Your credit score can affect your home buying ability. Learn how to manage and pay down your debt for a smoother experience.