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5 Alternative Sources for College Financial Aid

The average cost for a year of in-state public college tuition and fees for 2014-2015 is $22,410, according to the College Board. For students attending a private school, the cost more than doubles, with expenses averaging $46,272.

When you see those numbers, it's not surprising the national student loan debt balance has reached $1.32 trillion.

Filling out a Free Application for Federal Student Aid is the first step most families take to help pay for higher education through government loans, but for students and parents looking for additional funds to offset college costs (and graduate with as little student loan debt as possible), efforts shouldn't stop there.

Here are a few financial aid alternatives to explore that will help you avoid a pile of hefty loans:

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1. Local Scholarships

Scholarships are a great (and free) way to be awarded for your achievements and get extra money for college, but with scholarship websites and organizations boasting a seemingly endless supply of awards, applying can easily become a daunting and discouraging task.

Plus, with a mass of students applying for the same national scholarships you are, the odds of securing those awards may be stacked against you. Instead of looking for national awards where your application will be up against hundreds -- if not thousands -- of students across the U.S., see what's offered locally in your hometown.

Organized groups such as your local Kiwanis club, Elks Lodge or high school booster club may have a handful of scholarships for eligible local college-bound students. Other places to check for awards may include your city government or niche societies, like a National FFA Organization chapter, if you're interested in a specific area of study.

2. University Scholarships

Once you've exhausted scholarship opportunities at a local level, check out the financial aid options your college or university may offer.

Some schools may grant students academic merit scholarships upon acceptance, but if your academic record disqualifies you or your school doesn't have a big merit award program, you may still have other opportunities for free money.

Depending on your year in school, ethnicity or field of study, you may be eligible for a variety of funds. Again, the more niche places you apply, the better your chances.

If your school offers a scholarship and you meet the qualifications, apply. And, if you don't apply or win the scholarship this year, you can always try again next year once you have a little more college experience under your belt.

3. Campus Employment

FAFSA-awarded work-study packages give students a specified amount of money if they work on campus once they get to school. However, not all FAFSA applicants are eligible for the Federal Work-Study Program, and not all schools participate.

If you're not offered a traditional work-study package, don't rule out campus employment as a way to make a little extra cash. There are many employment options on college campuses that don't correspond with federal financial aid and can still help reduce your education costs or pay for essentials or entertainment.

You could be an on-campus resident assistant, a tutor or a campus tour guide for prospective students. Some of these positions may reduce overall costs by offering free on-campus housing or reduced-cost meal plans.

Part-time campus jobs are also more likely to work around your class and finals schedule. Another bonus: They'll be close to your classes and activities compared to an off-campus job.

4. Peer-to-Peer Lending

Thanks to the Internet, peer-to-peer lending services for student loans are on the rise as investors look to break into the student loan market. Companies such as CommonBond and SoFi connect offer lending options, such as fixed rates and repayment deferment, similar to those provided by private banking institutions and the federal government. If you're trying to avoid the traditional private student loan route, this could be a flexible option.

5. Crowdfunding

If "money for college" has been at the top of your birthday and holiday present wish lists for a while, consider taking your donation requests one step further. Create an online fundraising page, and share it on your social media channels to connect with good-hearted people who might be willing to donate to your cause.

Hey, if a guy can raise $55,000 to make potato salad, maybe you can raise a little bit to put toward your education.

Sienna Kossman is a reporter for CreditCards.com, a site dedicated to helping people make smart decisions about obtaining and using credit. You can follow her on Twitter at @siennamerrittk.



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