Navigating College Costs with Loans and Scholarships

The average cost to earn a college degree in the U.S. is over $500,000 according to National Center of Education Statistics, which is no small amount of money. Many students turn to private student loans and specialized scholarships to help cover the funding gaps left after savings and federal student aid. Here’s where to find those funding sources and what to look for as the school year approaches.

Start with Scholarships
Did you know that scholarships and grants cover around 35% of most college costs? And get this – 87% of that free money comes from colleges and universities, while 75% comes from private organizations and 65% from state programs, according to CNN Money.

There are some great sources for finding scholarships. and   offer millions of dollars in scholarship matches for students. Also, consider seeing if your employer, church, city, or state offers scholarships. Apply Montana, part of the Montana University System has a unique online application and scholarship information tool for in-state residents.

According to the U.S. Department of Education, only 71% of families apply for federal student aid with the FAFSA® form. If you haven’t filled yours out for the coming school year, do it now. This is the best way to be considered for federal, state, and school financial aid programs, such as grants, scholarships, work-study funds, and loans.

Consider Private Student Loans
If you still need help paying for school after receiving Federal Student Aid and Scholarships, turning to private student loans can help.

Many, but not all, private student loans require you to start making payments while you’re still in school and interest begins to grow the minute you accept the loan. Finally, most private loans do not qualify for forgiveness programs. Remember to investigate the details so you’re prepared to meet the loan terms.

Clearwater has partnered with Student Choice to offer a private student loan option*. With Student Choice, you apply once and have a line of credit available for the duration of your education, and loan repayment begins six months after you complete or exit school.

Every year, Clearwater Credit Union awards thousands of dollars in scholarships to graduating high-school seniors. In 2024, we awarded 11 scholarships totaling $23,500. If you or someone you know is a high school senior planning to attend college in the 2025/26 school year, visit clearwatercreditunion.org/scholarships in February 2025 to learn more. If you have questions about private loans to fund your college education, we’re always here for you.

*All loans are subject to approval.