Student loans are becoming increasingly expensive as tuition increases, especially at private institutions like Carnegie Mellon. The amount of money required to fund a single semester exceeds the cost of four years at some state schools! This adds up to a daunting figure that must be paid back upon graduation. From my experience, here are some of my best recommendations to maximize your financial assistance while in college.
1. Understand your FAFSA & how much assistance you receive
This is one of the most important recommendations that I can make. Many students do not realize how much aid they are eligible for or how much they will end up paying after graduation. Personally, I was one of the students who did not understand my FAFSA until I was already entering my senior year. I did not realize how much I would need to put toward my loans each month. Had I paid more attention to my financial package, I would have made more attempts to save money and find work during my time at CMU.
2. Apply for scholarships
Although this is a more obvious suggestion, many will downplay the significance of local scholarships. It may only be a few hundred dollars here and there, which may not seem as helpful when you attend a school like Carnegie Mellon, but that money quickly adds up! I would advise students to apply for as many scholarships as they are eligible for in high school, especially since the money will be added to your financial aid package. I applied to every scholarship that I could, which was a pain, but ultimately saved me a lot of money. It was well worth my time!
3. Negotiate additional aid
I was surprised to find out how many of my peers enrolled at Carnegie Mellon without negotiating their financial aid package. Negotiating the amount of assistance that you get is similar to any negotiation. It helps tremendously if you have a better deal from a comparable school so that you have some leverage, but it never hurts to ask anyways. In my case, the financial aid package that I received from Case Western Reserve University was significantly cheaper than Carnegie Mellon’s. I sent in my information to the financial aid office and responded with a deal to match the offer from Case Western. This is an excellent way to earn additional financial aid with minimal effort on your end!
4. Apply for (more) scholarships
This is something that I wish I would have researched more while still in school. There are plenty of scholarships available to undergraduate students, but they are more difficult to find. I would highly recommend looking for available scholarships to apply for, as these are typically for more money than the local ones from high school. You could even talk to your advisor or the financial aid office to find out if they have any contests going on to win university scholarships.
5. Take out a private loan with a lower interest rate
Depending upon how much aid you received from the government after filling out your FAFSA, this could be beneficial. Some private loans have lower interest rates than those through the federal loan service. I was able to take out a private loan for a significant portion of my tuition at an interest rate around half as high as my federal loan! When you attend a school like Carnegie Mellon, this is extremely important. As tuition increases, so does the amount of interest you will accrue, thus making a lower interest rate highly desirable.
Carnegie Mellon University has an exceptional reputation as a premier academic institution. That being said, earning a degree from such a prestigious university comes at a high cost. It is crucial to look into all options to reduce the amount of money you will owe back upon graduation. If you are like me, you want to be out of debt as quickly as possible! Most of these recommendations will not require an overwhelming amount of effort, but can be financially beneficial in the long run.
Matthew Remaley is a 2014 honors graduate from Carnegie Mellon’s Tepper School of Business. He holds a Bachelor’s degree in Business Administration with a concentration in Finance as well as a minor in Biomedical Engineering.