Paying for School

College students and their families rely on money provided by state and federal government, colleges, and private sources to pay for school. While the upfront cost is significant, the payoff can be great. The Pew Research Center estimates that the typical college graduate earns an estimated $650,000 more than the typical high school graduate over the course of a 40-year work life.

The Cost of College

The cost of college can include tuition, fees, room and board, books and supplies, and transportation. Ultimately it depends on the type of school you select, where the school is located, and where you choose to live. A comparison of college prices in Minnesota shows that technical and community colleges are the least expensive options, while private colleges and universities are the most expensive.

Explore the tuition and fees for higher education institutions in Minnesota to find out what fits your budget.

Sources of Financial Aid

Financial aid comes in many forms, including:

• Grants and scholarships – This is financial aid that you don’t need to repay. Grants are needs-based and are often awarded to students with the greatest need. To apply for a grant, fill out the Free Application for Federal Student Aid (FAFSA). On the other hand, scholarships are awarded based on achievement, cultural or religious background, or special skills and talents. Most scholarships are offered directly to students from colleges. Other organizations provide scholarships too. Many colleges, high schools, and libraries have scholarship search tools that you can use free of charge.
• Loans – This is financial aid that you need to repay. There are many different types of loans, and can be used if you don’t qualify for or need to supplement the scholarship or grant money you received.
• Work study, community service, or military education benefits – This is financial aid that you earn. It might include working a set number of hours on campus, be involved in a community service role, or be a benefit from military service.

Students may need a combination of all types of financial aid in order to pay for college. In fact, Minnesota undergraduates and their families received $3.4 billion in financial aid to help pay for postsecondary education in (fiscal year) 2011, according to a new report (pfd) from the state’s Office of Higher Education. Minnesota undergraduates received $1.5 billion in grants, $1.7 billion in student loans, $161 million in parent loans and $46 million in federal and state work study earnings.