Financial Planning for College

As you or your child embarks on the journey toward higher education, one of the most crucial steps is to create a solid financial plan for college. With tuition, books, and living expenses adding up, having a clear financial strategy can make all the difference. Here are some key ways students and parents can effectively plan for college expenses, ensuring a smoother transition into this exciting new chapter.

1. Explore Scholarships and Grants

Before taking out loans, exhaust all available scholarship and grant opportunities. Unlike loans, scholarships and grants don't need to be repaid, making them an ideal way to cover college costs. Start early by researching scholarships related to your intended field of study, community involvement, or unique skills. Many websites aggregate scholarship opportunities, allowing you to search based on criteria like location, academic performance, and more.

For parents, it's wise to encourage your child to apply for as many scholarships as possible. Each small award can add up to substantial savings over the course of four years.

2. Apply for Financial Aid

The Free Application for Federal Student Aid (FAFSA) is a critical tool in securing financial aid for college. By filling out the FAFSA, students can qualify for federal loans, work-study programs, and grants. Even if you believe your family might not qualify for need-based aid, it's still worth applying; many colleges use FAFSA data to award merit-based scholarships and other financial incentives.

Parents should stay involved in this process, helping to gather necessary financial documents and ensuring the application is submitted on time. Missing deadlines can significantly reduce the amount of aid available.

3. Start Saving Early

If you're a high school student, now is the time to start saving. Whether it's from a part-time job, birthday money, or summer work, every dollar saved can reduce future debt. Consider opening a savings account specifically for college expenses to keep your funds separate and focused.

At First Seacoast Bank, we offer a variety of savings accounts tailored to meet your needs. Our Kasasa Saver® account is an excellent option, providing competitive interest rates and no monthly fees, which can help your savings grow faster. Additionally, pairing a Kasasa Saver with a Kasasa Cash® checking account allows you to earn even more rewards, making it a smart choice for students who want to maximize their savings.

4. Understand Student Loans

If you need to take out loans, make sure you fully understand the terms. Federal loans typically offer lower interest rates and more flexible repayment options compared to private loans. It's important to borrow only what you need and consider how much debt you're willing to take on before signing any loan agreements.

Parents and students should have open conversations about the impact of student loans on long-term financial health. Understanding the repayment process, interest rates, and deferment options can prevent future financial strain.

5. Create a Budget

Once you've determined your sources of funding—whether through scholarships, savings, or loans—create a budget that outlines all expected expenses. This includes not just tuition, but also books, supplies, housing, food, and personal expenses. Having a budget in place can help you avoid overspending and ensure that your funds last throughout the school year.

Parents can assist by reviewing the budget with their child and discussing any areas where they might be able to cut costs. It's also a great time to teach valuable financial skills like tracking expenses and managing credit responsibly.

6. Open an Account with First Seacoast Bank

Having a reliable bank account is essential for managing your college finances. First Seacoast Bank offers a range of accounts that are perfect for students. Our Kasasa Cash® account, for instance, provides high-interest rates on balances up to a certain amount, no monthly maintenance fees, and nationwide ATM fee refunds—ideal for students studying out of state.

Opening a savings account alongside your checking account can help you set aside funds for future needs, whether it's a new laptop, textbooks, or an unexpected expense. With online and mobile banking, you can easily manage your money from anywhere, giving you peace of mind as you focus on your studies.

Financial planning for college is an ongoing process that requires careful consideration and proactive steps. By exploring scholarships, applying for financial aid, saving early, understanding loans, and budgeting wisely, students and parents can create a strong financial foundation for college. First Seacoast Bank is here to support you every step of the way, with accounts and services designed to help you achieve your educational goals.

Visit our website or stop by one of our branches to learn more about how we can help you plan for college with confidence.