Security Corner Blog

College comes with plenty of exciting milestones — new classes, new friends, new experiences — but figuring out how to pay for it can feel overwhelming. Between tuition, books, housing, and everyday expenses, understanding your options before the semester starts can help you make smarter financial decisions.

Whether you’re heading to college for the first time or returning for another year, here’s what to know about financial aid, scholarships, tuition payments, student loan repayment, and the scams targeting students and families.

Start With Financial Aid

Financial aid can come in several forms, including grants, scholarships, work-study, and student loans. For many students, the first step is completing the Free Application for Federal Student Aid (FAFSA).

The FAFSA is free to complete and can help determine your eligibility for federal, state, and school-based financial aid. Many colleges and states also use FAFSA information to determine aid eligibility. (Consumer Advice?)

Tip: Be cautious of anyone asking you to pay to complete or submit your FAFSA. The FAFSA is free, and you should never give someone your Federal Student Aid account username or password.

Search for Scholarships — and Don’t Stop at One

Scholarships can be one of the best ways to reduce the amount you need to borrow because they generally don’t have to be repaid.

Look beyond the biggest national scholarships. Your school’s financial aid office, local businesses, community organizations, professional associations, employers, and state agencies may all offer scholarship opportunities. Local scholarships can sometimes have fewer applicants, which may improve your chances of receiving an award. (Student Aid?)

When searching, keep a simple list of:

1. Scholarship name
2. Application deadline
3. Eligibility requirements
4. Required essays or documents
5. Award amount
6. Application status

And remember never pay someone simply because they offer you a scholarship.

Understand Your Tuition Bill

Receiving a financial aid offer doesn’t necessarily mean your entire college bill is covered.

Before accepting an offer, look at the difference between your school’s total cost and the financial aid you’re receiving. Your costs may include tuition and fees, housing, meals, books, transportation, and other expenses.

Pay close attention to the type of aid being offered. Grants and scholarships generally don’t need to be repaid, while student loans do.

If there’s still a gap, talk with your school’s financial aid office before turning to additional borrowing. They may be able to explain additional aid options or help you understand your existing offer. (Consumer Advice?)

Borrow Only What You Need

Student loans can help cover education expenses, but they are still debt.

Before accepting a loan, consider how much you need and what your future payments could look like. Federal student loans may offer protections and repayment options that can differ from private student loans. (Consumer Advice?)

A good rule of thumb: don’t borrow money just because it’s offered to you.

If you have leftover loan funds after paying your education expenses, think carefully before treating that money like extra spending cash.

Repayment Doesn’t Have to Be a Surprise

If you have student loans, make sure you know who services your loans, when payments are due, and what repayment options are available.

For federal student loans, borrowers can manage their loans and explore repayment options through Federal Student Aid. If you’re having trouble making payments, contact your loan servicer rather than ignoring the problem. Depending on your circumstances and loan type, options may include different repayment plans, deferment, or forbearance. Keep in mind that interest can continue to accrue during some periods of paused or reduced payments.

If you’re enrolled in federal student loan autopay, you may also be eligible for savings. Federal Student Aid currently says eligible borrowers enrolled in autopay receive a 1% interest-rate reduction beginning July 1, 2026.

Watch Out for Student Aid and Scholarship Scams

Unfortunately, scammers know that students and families are looking for ways to make college more affordable.

A scam may arrive as an email, text, phone call, social media message, or even a letter claiming you’ve been selected for a scholarship or special financial aid program.

Red flags include:

“You’re guaranteed a scholarship.”

Legitimate scholarships don’t require you to pay upfront in exchange for a guaranteed award.

“Pay a processing fee to receive your financial aid.”

Be suspicious of anyone asking you to pay to complete or process your FAFSA.

“Give us your FSA ID so we can help.”

Never share your Federal Student Aid login information. Scammers can use account credentials to access personal information. (Consumer Advice?)

“We can erase your student loans immediately.”

Be especially cautious of companies promising instant loan forgiveness or dramatically reduced payments for a fee. Legitimate federal student loan assistance is available directly through Federal Student Aid and your loan servicer. (Consumer Advice?)

“You have to act today.”

Scammers often create urgency, so you don’t have time to verify their claims. Slow down and independently confirm who is contacting you.

Protect Your Money and Personal Information

When dealing with financial aid or student loans, go directly to official sources rather than clicking links in unexpected emails or texts.

For federal student loans, start with StudentAid.gov. If you have private student loans, contact your lender or servicer directly. The Federal Trade Commission also recommends reporting suspected student loan and financial aid scams to the FTC and your state attorney general. (Consumer Advice?)

Before you pay or share information, ask:

• Is this service necessary?
• Can I get the same help for free?
• Did I independently verify the organization?
• Am I being pressured to act immediately?
• Is someone asking for my FSA ID, bank account, or other sensitive information?
• Am I being promised something that sounds too good to be true?

Make Plan Before the Semester Starts

Paying for college is easier when you know where your money is going.

Before classes begin, review your financial aid, understand your tuition balance, search for scholarships, create a realistic school-year budget, and know what you’ll owe if you’re using student loans.

And when something seems wrong, pause before you pay or share information. Taking a few extra minutes to verify an offer could save you money — and a whole lot of stress.

Remember: If someone promises guaranteed financial aid, instant loan forgiveness, or a scholarship in exchange for an upfront fee, that’s a major red flag. When in doubt, go directly to the official source.

Helpful Resources

• Federal Student Aid: Learn about FAFSA, financial aid, and federal student loans at StudentAid.gov.
• Federal Trade Commission: Learn how to recognize and report financial aid, scholarship, and student loan scams.
• Your school’s financial aid office: Get help comprehending your specific financial aid package and available scholarship opportunities.