At National University, we’re committed to making higher education accessible for every adult learner. This guide, “How to Pay for College,” walks you through the full range of financial aid options, helping you discover the resources and support you need to fund your education and reach your goals.
Key Takeaways: How To Pay For College
- College costs are rising, and student debt is high, so planning early matters. Aid is meant to bridge the gap between what school costs and what you can pay.
- Start with the FAFSA every year; it’s the gateway to federal aid and often required for institutional and state scholarships too.
- Prioritize “free money” first: grants and scholarships don’t need repayment and can dramatically lower total costs.
- If you borrow, lean on federal loans before private because they usually offer fixed rates, stronger protections, and flexible repayment/forgiveness options.
- Stack every eligible resource, military benefits, employer workforce partnerships, and advisor support, to reduce out-of-pocket costs and keep debt manageable.
The Cost of Education
College costs have climbed steadily over the years, with reports saying tuition has risen as much as 84 percent since 2000. College loan debt has grown, too, surpassing car loans and credit cards as the largest source of personal debt. Along with higher costs, many public colleges and universities are spending less per student today than they have in many years because of decreased education funding by other sources. Even severe cuts to per-pupil spending are not enough to make up for the drop in school funding, so tuitions have skyrocketed.
College enrollment has declined correspondingly, but not because people do not want to go to college. The fact is that many families cannot afford the increased cost.
In 2025, Americans owed over $1.81 trillion in student loan debt, and about 1 in 7 adults ages 30–44 (approximately 14%) were paying off student loans.
Benefits of a College Degree
The value of a higher education is undeniable. Earning your college degree can increase your earning potential, improve your job prospects, and set you up for a more secure future. In fact, 87 percent of college graduates find their college education worth the money they put into it.
Based on recent studies and the latest 2025 data, bachelor’s degree holders are likely to earn about $1.19 million more over their lifetime than peers who only completed high school. This estimate can vary, but comprehensive analyses place the figure between $1.19 and $1.2 million in today’s dollars, reflecting both wage growth and career longevity for graduates compared to non-graduates.
A college degree provides job security, too. The unemployment rate for workers with bachelor’s degrees is almost 40 percent lower than those with a high school diploma, according to the latest 2025 BLS data. During the recent recession, the group that suffered the greatest job loss was those with no postsecondary education. The group that was impacted the least: college graduates.
College grads experience benefits of their education far into the future. According to the Lumina Foundation, bachelor’s degree holders are more likely to have health insurance, contribute to a retirement plan, and rely less on government assistance. College grads also have a greater impact on society through volunteerism and philanthropic contributions.
Financial Aid Basics
Most college students pay for their education with grants, scholarships, loans, or a combination of the three. The purpose of financial aid is to bridge the gap between educational cost and a student’s resources. Here is a quick overview of the differences between grants, scholarships, and loans. The following details will give you a deep dive into each financial aid option.
Watch: How to Pay for College, Financial Aid & Scholarship Tips
In this short video from National University, you’ll learn how to budget for total college costs, the differences between grants, scholarships, loans, and military benefits, and where to start with the FAFSA, plus how NU advisors and workforce partnerships can help you lower out-of-pocket costs.
Financial Aid Options
| Grants | Grants are essentially free money awarded to students based on financial need. Typically, grants come from the government, your college, or a nonprofit organization. Here’s the best part: you don’t have to pay them back. | Cost to you: Free |
| Scholarships | Scholarships are usually awarded based on merit or other specific criteria, such as minority status, athletic ability, or academic achievement. Scholarships, like grants, do not need to be repaid. | Cost to you: Free |
| Loans | Scholarships are usually awarded based on merit or other specific requirements, including minority status, athletic ability, or academic achievements. Scholarships, like grants, do not need to be repaid. | Cost to you: That depends on the amount you borrow, when you pay it back, and the interest you accrue. |
Grants
Grants are a great way to fund your education because, unlike loans, most do not have to be paid back. Each grant is awarded on a need basis and will have unique qualifiers that must match your situation. To learn more about federally issued government grants, including eligibility requirements, visit studentaid.gov.
Scholarships
Scholarships are usually awarded based on merit or other specific requirements. Sometimes those requirements may be based on minority status, athletic ability, or even awarded to students who win academic competitions. Scholarships, like grants, do not need to be repaid.
You can learn about scholarships in many ways, starting with contacting the admissions office at the school you plan to attend. Another good place to find scholarship information is the U.S. Department of Labor’s scholarship search tool. Remember that you do not have to pay any agency or individual to find scholarships or other financial aid opportunities.
Student Loans
Loans come in all sizes and varieties and differ from grants and scholarships in that they must be paid back. Some loans may be subsidized by the U.S. Department of Education, while others are offered unsubsidized. The difference is that the U.S. Department of Education pays the interest on a Direct Subsidized Loan while you are in school, and you are responsible for paying the interest on a Direct Unsubsidized Loan.
For a full list of Federal student loans, interest rates, and criteria for eligibility, visit studentaid.gov. You do not need to pay an agency or individual to find scholarships or financial aid for you.
Who Qualifies for Federal Student Aid
Generally speaking, you must demonstrate financial need for a majority of the federal student aid programs. This need is typically defined by the difference between the cost to attend a school and your expected contribution to the cost.
If you do not meet the citizen eligibility status, there may be options through the U.S. Department of Labor or your country’s embassy or consulate that may afford you aid. Ask the college or career school you plan to attend whether they offer any aid for students in your situation.
For a complete list of eligibility criteria, visit studentaid.gov. You can also speak with a financial aid advisor at the school you are interested in for answers about specific criteria.
General Eligibility for Federal Aid
- Be a U.S. citizen or an eligible non-citizen
- Have a valid Social Security number
- Have a high school diploma or General Educational Development (GED) certificate
- Be enrolled or accepted into an eligible degree program at an accredited institution of higher education
- Be registered for the Selective Service if you are a male between the ages of 18-25
- Complete and submit a Free Application for Federal Student Aid (FAFSA)
Your 10 Step Financial Aid Checklist
A college degree is one of the best investments you can make in your future. Although figuring out how to pay for college may feel overwhelming, there are many resources available to help you succeed. Use this checklist to stay organized and make the most of every financial aid opportunity available to you.
Step 1: Apply for FAFSA
Start with the Free Application for Federal Student Aid (FAFSA), it’s the key that unlocks most types of financial aid, including grants, scholarships, and loans.
- Visit studentaid.gov to complete your application.
- You can apply before choosing a specific school
- Apply online for the fastest response.
- Once submitted, you’ll receive a Student Aid Report (SAR), which outlines your eligibility for federal aid
Tip: Many grants and scholarships require a completed FAFSA, so submit it as early as possible.
Step 2: Choose Your College and Degree
Connect with an admissions advisor at your chosen university. They can help you:
- Find a degree program that matches your goals
- Determine if previous credits can transfer
- Outline your total cost of attendance (tuition, fees, books, and living expenses)
Once your FAFSA results are available, a financial aid advisor can help identify the best combination of grants, scholarships, and loans for you.
Step 3: Understand Your College Costs
Before you plan your financial aid, understand all your potential college expenses, both direct and indirect.
Direct Costs
- Tuition and course fees are paid directly to your university.
Indirect Costs
- Textbooks, supplies, technology, and equipment
- Housing, transportation, and other living expenses
- Unexpected costs like travel or equipment rentals
Tip: Create a realistic budget early. This helps you plan for surprises and focus on earning your degree.
Step 4: Seek Free Money First (Grants & Scholarships)
Free money should always come first! Grants and scholarships do not need to be repaid and can significantly reduce your costs.
Grants
Based on financial need or merit.
- Common examples include:
- Federal Pell Grant
- Degree-specific or merit-based grants
Scholarships
Based on academic performance, field of study, community involvement, or affiliation.
Tip: National University offers scholarships to supplement federal or state aid.
Use the U.S. Department of Labor’s Scholarship Search Tool to discover more opportunities.
Step 5: Review Loan Options Carefully
If you need to borrow, make informed choices and borrow responsibly.
Federal Student Loans
- Offer fixed, lower interest rates than most private loans.
- Do not require credit checks (except PLUS loans).
- Help you build a positive credit history.
Private Loans
- May fill funding gaps not covered by federal aid, but often have higher interest rates.
- Compare carefully before borrowing.
Managing Your Student Loans
- Consolidate multiple loans into one if it simplifies repayment.
- Postpone payments if needed through deferment or income-based repayment plans.
- Ask about forgiveness programs if you work in education, public service, or healthcare.
Tip: Use studentaid.gov to manage, consolidate, or estimate your student loan payments.
Step 6: Explore Military Benefits
If you are active duty, a reservist, Veteran, or a military family member, you may qualify for special financial aid options.
Active Duty & Reservists
- Eligible for reduced military tuition rates at NU.
- May receive E-book and course fee waivers.
Spouses & Dependents
- Also qualify for NU’s military tuition rate.
Veterans
- May receive benefits under the Post-9/11 GI Bill or Montgomery GI Bill, which can cover up to 100% of tuition, plus housing and textbooks.
Step 7: Check for Workforce Partnerships
If you’re employed, your company may partner with National University to offer employee tuition scholarships or discounts.
Popular NU partners include:
- Amazon
- Easterseals
- American Medical Response
- Public Safety and Law Enforcement Agencies
Tip: Ask your HR department if your employer partners with NU, and you could automatically qualify for discounted tuition.
Step 8: Connect with Financial Aid Advisors
Don’t navigate financial aid alone. NU’s financial aid advisors can help you:
- Review your FAFSA results and eligibility
- Identify all available aid programs
- Create a realistic budget for your studies
- Track important deadlines
- Understand repayment options after graduation
Step 9: Make Sure Any Debt Is Reasonable
Whether you go with a federal or private loan, ask your school’s financial aid advisor for the starting salaries of recent graduates in your field of study to get an idea of how much you are likely to earn after you graduate. You can use the Department of Labor’s career search tool My Next Move to augment that information so you can consider your debt-to-income ratio before taking on debt.
Step 10: Use Free Financial Aid Resources
Here are a few trustworthy links to help you explore and apply for aid:
Final Takeaway
Financial aid is more than just paperwork, it’s your pathway to achieving your educational goals. Take advantage of every opportunity available, from grants and scholarships to military and workforce benefits. With the right plan and support, you can afford your education and invest confidently in your future.
About National University
National University is a San Diego-based nonprofit founded in 1971 by retired U.S. Navy Captain David Chigos. As the largest private nonprofit university in San Diego, we are committed to providing accessible, achievable higher education to adult learners. To help reduce the cost of education, we accept all federally funded financial aid programs, including grants, loans, and scholarships. We also award tuition scholarships and grants to eligible students.
Here are just a few of the benefits of enrolling at NU:
- Over 150 associate, bachelor’s, and master’s degrees, plus certificates and credentials
- Four-week and eight-week classes offered online or in person
- Locations across California
- Accredited by the WASC Senior College and University Commission (WSCUC)
- Named a Best Value College by Money Magazine
- Yellow Ribbon school with tuition discounts for military personnel and their dependents
- Over 250,000 alumni around the globe
To learn more, contact our financial aid team at [email protected].
