A degree from a four-year university has become a requirement for many jobs. If you’re looking to embark on that journey, you’ve likely already noticed that this degree isn’t going to come cheap. The average tuition for private universities for the 2022 school year was around $35,000 — and that’s just for one school year.
Students paid around $10,000 per year for state schools, but you can expect that number to more than double if you’re coming from out of state. You’ll also have to factor in the cost of room and board, a meal plan, and textbooks and supplies. It’s likely that you don’t have $100,000 lying around, especially if you’re just coming out of high school.
If you don’t have a rich benefactor to lend you a helping hand with this immense financial burden, you’re likely to become one of the almost 43 million Americans with an outstanding student loan. Don’t panic. While carrying debt is far from ideal, it’s important to remember that there are different kinds of debt, and some aren’t as bad as others.
Consider a student loan an investment in your own future. Research suggests that those with any four-year degree can expect to earn, on average, double what their high school diploma-only counterparts earn. Taking on such a lofty investment can be frightening at any age, but there are ways to take some of the pressure off.
One of the most common ways college students can alleviate some of their financial burdens is with scholarships. If you’re fortunate enough to land yourself a scholarship, it’s in your best interest to understand how to use this money responsibly so that you can make the most of it and start your post-college life with as little debt and stress as possible.
Understand what kind of scholarship you’ve received and what you can use it for
Whether you’re fresh out of high school, returning to college while already working in your desired field, or attending university for the first time as an adult, it’s very likely that there is a scholarship out there tailored to your own needs and interests. There are scholarships for extracurriculars and hobbies; some are granted based on gender, race, or ethnicity; and others might be for military service. Take some time to research and browse. You might be surprised at just how much scholarship money is out there.
The most common types of scholarships are merit and athletic-based scholarships: Perhaps you were such an outstanding student or so gifted on the field/court/track that universities might be willing to essentially pay you to attend their institution.
Remember, though, that any type of scholarship is going to come with a set of rules for both how to maintain funding and how you are allowed to spend it. It’s not uncommon for most scholarships, especially those that are merit-based, to require you to maintain a minimum GPA or risk losing your scholarship. Athletic scholarships are obviously going to require you to play the sport you were recruited to play. Be sure to thoroughly research the rules surrounding your
scholarship before accepting it.
Aside from any academic or extracurricular duties required of you, you’ll also want to make sure you understand how exactly you are allowed to spend your scholarship money. While some scholarships might pipe directly to your school’s financial aid or accounting departments to automatically cover tuition or rooming costs, others might simply place money in an account for
you to use at your own discretion.
Are you allowed to spend this money on costs not directly associated with your university, like books, school supplies, groceries, or travel expenses? It’s imperative that you understand exactly what you’re allowed to use your funding for, or you might risk having to pay it back.
Budget your scholarship accordingly
Once you’ve collected your scholarship and wrapped your head around the spending rules, sit down and outline a plan for how you’re going to use it. This might require you to coordinate with your school’s financial aid or accounting departments to set up a line between your scholarship funds and their billing department. Next, begin making a detailed budget to decide when and
how you’re going to spend your scholarship.
●Determine exactly how much scholarship money is available to you per semester or school year.
● Prioritize your expenses. Determine what you will need the most help paying for and use your best judgement to weigh that against the importance of the expense.
● Estimate the cost of these expenses. Certain figures, like the costs of tuition, room and board, and a meal plan, should be easily accessible through your school. Others, like the cost of textbooks, groceries, and school supplies, might require a bit of research and guesswork on your part.
● Keep a record of how you spend your scholarship money. Some scholarships might require you to do so, but it might be in your best interest to keep a physical or electronic record of your scholarship expenditures even if yours doesn’t. Keeping a record of how and when you spend your money is a simple way to hold yourself accountable and ensure you aren’t spending your scholarship funds frivolously.
Plan for upcoming semesters
Consider how much scholarship money you’ll have leftover at the end of the semester or school year. Think back to those spending rules from a little while ago.
Are you required to return any balance that you didn’t spend during the school year? If not, it might tempt to use those leftovers for non-academic purchases. Harness your willpower and self-control. Remember that you likely have several semesters ahead of you before being in the clear. If possible, roll that remaining money over into next year’s budget to give yourself a bit more wiggle room when calculating your expenses.
You’ll likely either need to reapply for your scholarship each year or apply for an entirely new scholarship, depending on your first one. Remember that there are thousands of scholarships out there for many interests, causes, and qualifications. Begin applying as soon as possible to maximize the amount you can apply for.
John DeGregorio
John is a finance writer based in Brooklyn, NY. He studied Journalism & Media at
Rutgers University.
