Question

Matt wants to attend a university in California and is waiting to hear back from schools where he has applied. He has filled out a FAFSA, which is a federal form that helps the government determine financial need for grant programs.

Matt’s family has limited savings. Also, he wants to avoid taking on a great deal of debt that will have to be paid once he is out of school. Which options would best suit his circumstances?

Which options would meet Matt’s needs? Check all that apply.

getting a work-study job
taking out a private loan
applying for federal loans
applying for federal grants
working at an on-campus job
participating in a national service program

Answer 1

Best fits for Matt (family has limited savings and he wants to avoid taking on much debt):
- getting a work-study job — YES. Pays while in school and doesn’t create long‑term debt.
- applying for federal grants — YES. Grant aid (e.g., Pell) doesn’t have to be repaid.
- working at an on-campus job — YES. Earns money to pay expenses without borrowing.
- participating in a national service program — YES. Programs like AmeriCorps offer living allowances and/or education awards that reduce tuition costs without traditional debt.

Not a good fit:
- taking out a private loan — NO. Private loans usually have higher rates and fewer protections; they increase long‑term debt.
- applying for federal loans — USUALLY NO if he wants to avoid debt. (Federal loans are safer than private loans—lower rates and better repayment options—so they’re an acceptable last resort, but they still create debt.)