With all of the media attention around the student loan crisis, it can feel taking out loans to pay for school is the norm. Some may even consider it an (expensive) rite of passage!
For the more fiscally minded student, there is good news: there are ways to pay for school without going into debt. The only downside is that they require an earnest time commitment and a little detective work.
For those who want to learn how to pay for college without student loans, here are eight ways to make it happen.
How to pay for college without loans
1. Employer reimbursement
Many businesses are now offering tuition reimbursement to both full and part-time employees. Big name brands such as Starbucks, Home Depot, IBM, and Coca-Cola now offer tuition reimbursement/assistance to make themselves more competitive, while helping employees defray college costs.
Scholarships are a given factor in the “how to pay for college” equation, but with stiff competition and lengthy application processes, many students get discouraged from seeking them out.
Our advice? Keep going. Thousands of dollars in scholarship money is left on the table each year – either because the application criteria is too stiff, or kids don’t want to take the time to apply.
And yes, it does take a lot of time to fill out scholarship applications. But the longer the application, the less competition! Students should view applying for scholarships as a part-time job and remember not to snub smaller awards. Every little bit you win – even $500 – is less money you have to take out in loans and eventually repay.
Think scholarship money gets left on the table? A reported 2.9 billion in federal Pell Grants – which also don’t have to be repaid – went unused in 2014.
Why? Many eligible students didn’t fill out the FAFSA (Free Application for Federal Student Aid) or didn’t complete it on time.
Aside from federal grants, there are also many private grants available to eligible students. Scholarships and grants are similar; they’re both sources of free money students do not have to pay back. However, grants are usually awarded based on need, while scholarships can be based on a student’s merit.
4. Work study
Students who qualify for federal aid may also qualify for a school’s work study program. These programs place students in an area related to their field of study and allows the money they earn to be used for tuition and other college-related expenses.
5. Join the military
The GI Bill allows those who serve in the military to receive a free college education, plus free housing while in school.
There are some stipulations: the GI Bill only pays $17,500 per year for private universities, for example. You also must have served on active duty with an honorable discharge. But for those who want to serve their country, a 100 percent free education afterward is a nice incentive.
With all of the hype around the college experience and the money schools invest in marketing to potential students, it isn’t very glamorous to talk about picking a budget-friendly school. Still, making the more fiscally sound decision now could have long-lasting benefits, such as more money in your savings, freedom and flexibility in your career, and less stress from debt payments.
Aside from those gifted a free education by their parents, students who graduate without student loans are often the ones who made sacrifices. Consider attending a state school instead of a private university, opting for your second choice school because you received more financial aid, or attending the school where a parent works in order to pay for college without student loans.
If you truly want to avoid student loan debt, you may have to decide on the school that isn’t your first choice.
7. Save early and get creative
There’s nothing stopping you from getting a part-time job while in high school and saving money for your college education. It may also be to your benefit to get a side hustle, such as babysitting or freelance writing, that you can take with you into college to help you pay as you go (see blow).
For the really creative types, you can create products, start blogging, or launch a crowdfunding campaign to help cover college costs.
8. Pay as you go
Those wondering how to pay for college without taking on student loan debt often ignore the most obvious choice – going to a nearby school and paying as they go. It might mean taking longer to graduate or having to balance full-time work with full-time studies. Even so, for students who want to graduate with zero debt, working your way through school one of the best ways to get it done!
Need a student loan?Here are our top student loan lenders of 2018!
|1 Important Disclosures for CollegeAve.
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
2 Important Disclosures for Discover.
3 Important Disclosures for Ascent.
Before taking out private student loans, you should explore and compare all financial aid alternatives, including grants, scholarships, and federal student loans and consider your future monthly payments and income. Applying with a cosigner may improve your chance of getting approved and could help you qualify for a lower interest rate. Ascent Student Loans may be funded by Richland State Bank (RSB) or Turnstile Capital Management, LLC (TCM), which are not affiliated entities. Certain restrictions and limitations may apply. Ascent Student Loan products are subject to credit qualification, completion of a loan application, verification of application information and certification of loan amount by a participating school. All loan products may not be available in certain jurisdictions. Other terms and conditions apply. Ascent is a federally registered trademark of TCM and may be used by RSB under limited license. Richland State Bank is a federally registered service mark of Richland State Bank.
* Application times vary depending on the applicants ability to supply the necessary information for submission.
* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.
4 = Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.
5 Important Disclosures for PNC.
PNC Bank is one of the nation’s largest education loan providers. For over 40 years, PNC has been committed to helping students and their families make possible the adventure of college.
6 Important Disclosures for SunTrust.
Before applying for a private student loan, SunTrust recommends comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. To view and compare the available features of SunTrust private student loans, visit https://www.suntrust.com/loans/student-loans/private.
Certain restrictions and limitations may apply. SunTrust Bank reserves the right to change or discontinue this loan program without notice. Availability of all loan programs is subject to approval under the SunTrust credit policy and other criteria and may not be available in certain jurisdictions.
SunTrust Bank, Member FDIC. ©2018 SunTrust Banks, Inc. SUNTRUST, the SunTrust logo and Custom Choice Loan are trademarks of SunTrust Banks, Inc. All rights reserved.
7 Important Disclosures for LendKey.
Additional terms and conditions apply. For more details see LendKey
8 Important Disclosures for CommonBond.
A government loan is made according to rules set by the U.S. Department of Education. Government loans have fixed interest rates, meaning that the interest rate on a government loan will never go up or down.
Government loans also permit borrowers in financial trouble to use certain options, such as income-based repayment, which may help some borrowers. Depending on the type of loan that you have, the government may discharge your loan if you die or become permanently disabled.
Depending on what type of government loan that you have, you may be eligible for loan forgiveness in exchange for performing certain types of public service. If you are an active-duty service member and you obtained your government loan before you were called to active duty, you are entitled to interest rate and repayment benefits for your loan.
A private student loan is not a government loan and is not regulated by the Department of Education. A private student loan is instead regulated like other consumer loans under both state and federal law and by the terms of the promissory note with your lender.
If your private student loan has a fixed interest rate, then that rate will never go up or down. If your private student loan has a variable interest rate, then that rate will vary depending on an index rate disclosed in your application. If the interest rate on the new private student loan is less than the interest rate on your government loans, your payments will be less if you refinance.
If you don’t pay a private student loan as agreed, the lender can refer your loan to a collection agency or sue you for the unpaid amount.
Remember also that like government loans, most private loans cannot be discharged if you file bankruptcy unless you can demonstrate that repayment of the loan would cause you an undue hardship. In most bankruptcy courts, proving undue hardship is very difficult for most borrowers.
9 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|3.69% – 10.94%1||Undergraduate, Graduate, and Parents||Visit CollegeAve|
|3.97% – 12.97%3||Undergraduate and Graduate||Visit Ascent|
|4.34% – 12.99%2||Undergraduate and Graduate||Visit Discover|
|4.12% – 10.98%*,4||Undergraduate and Graduate||Visit SallieMae|
|5.03% – 11.23%5||Undergraduate and Graduate||Visit PNC|
|4.00% – 13.00%6||Undergraduate and Graduate||Visit SunTrust|
|4.72% – 9.81%7||Undergraduate and Graduate||Visit LendKey|
|3.72% – 9.68%8||Undergraduate, Graduate, and Parents||Visit CommonBond|
|4.19% – 12.06%9||Undergraduate, Graduate, and Parents||Visit Citizens|