6 Ways to Pay for College That Won’t Put You Into Debt

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Student debt is a crippling start to adulthood. When you’re buried with loans, it can be hard to recover.

But when the tuition and college-related expenses cost between $20,000 to $50,000, how can you help your child pay for college and not go into debt? We have six strategies for paying for college that won’t put you or your college-bound child into debt.

How to Pay for College Without Going Into Debt

I obviously took out student loans to pay for grad school so today’s post is a guest post from Matt Satell. I hope you enjoy another perspective!

1. Start Saving Early

Like a retirement plan, the sooner you and your child start saving for college, the better off you are. Make it a joint effort. Teach your child to save for college, whether they are paying for it or not. It’s never too early to teach your children about the importance of saving and avoiding debt.

A 529 Plan

As soon as your child is born, you can open a 529 Plan in their name. These savings accounts offer tax and financial aid benefits. There are two types of 529 plans:  

• A college savings plan: money can be used for tuition and other college expenses like housing and books. 
• A prepaid tuition plan: money is used for just paying tuition.

Almost every state offers a 529 Plan, and many offer incentives to save money every year for your child.

Open a Bank Account in Your Child’s Name

By opening a bank account in their name, you’re establishing a pattern of saving and budgeting. Teach them young or teach them now. Either way, you need to start the conversation about the reality of college expenses and teach them how to plan for it.

2. Consider College Alternatives for Undergraduate Degree

You can offset an undergraduate degree’s cost by considering alternatives to a traditional four-year university. By leveraging community colleges, online universities, and high school continuing education programs, your child can save substantial amounts of money to complete an Associate’s or Bachelor’s degree.

Community College

Not only are community colleges more economical than a four-year university, but their credits also count toward your child’s degree. Local community colleges generally cost about $3,500 a year for tuition.

I once knew a high school senior who didn’t get into her ideal university because her GPA wasn’t strong enough. She was very discouraged and worried about how to pay for college.

I told her to go to community college, work hard, get her GPA up, and then transfer. 

She found that all her credits from her community college transferred to the traditional university. She ended up earning her Associate’s degree from the community college, saving a ton of money on tuition, and then transferred to her dream university, where she finished her Bachelor’s degree.

Online Universities

Online universities are another way to earn college credits and degrees for a fraction of the cost. Because they are online, they offer more flexible scheduling than a traditional school so you can work and earn your degree at the same time.

High School Concurrent Enrollment and Associate Degree Programs

More and more high schools offer concurrent enrollment programs or Associate degree programs that allow high school students to earn college credit or their Associate’s degree while still in high school. 

When done through a concurrent enrollment program, tuition and class fees are minimal, and the college credit transfers to most universities. Check with your desired university to see which concurrent enrollment classes they accept.

3. Choose a College That’s Affordable

While going to your dream school is ideal, it doesn’t always make the most sense. Some private four-year colleges can cost more than $50,000 annually. Today, employers often care most about your skillset and experience rather than where you received your diploma.

For career paths that don’t require a specific education track, the ROI of an expensive private university education may not be worthwhile.  Consider your options and don’t default to following the conventional wisdom about a traditional four-year degree.

Pick an In-State college Over a Private College

The National College Broad data shows that public in-state college expenses and tuition are half the cost of private colleges. Going to an in-state school can save you $15,000 – $30,000 in expenses every year for the same degree.

4 Apply for Grants and Scholarships

Grants and scholarships are essentially free money – low lying fruit for individuals willing to reach up to get them. There are several tricks to help your child stand out for scholarships. But just finding relevant grants and scholarships opportunities can be tough.  Make sure to do your research and investigate every potential option.

Federal and State Grant Programs

When you apply with FAFSA, you’ll find out if you qualify for individual grants based on financial need. Pell Grants are the most popular federal grants that help college students pay for school. Eligibility for Pell Grants is dependent on financial need, grades, and extracurricular activities. You’ll want to apply early because of aid caps.

Scholarship Programs

There are lots of organizations and individuals who issue scholarships to those willing to apply. Although knowing where to find all the different scholarships you qualify for can be difficult. You’ll want to search and apply for:

• Local scholarships
• National scholarships
• Military scholarships
• School-specific scholarships

A number of sites like Bold and WiseGeek have compiled lists of easy scholarship opportunities that students can quickly apply for.  Often times it can be a numbers game, so the more scholarships you apply to, the more you are likely to win.

You can also talk to your high school counselor or college counselor for more information on where to find the best scholarships. Each of these opportunities could be free money for college tuition and expenses.  If you treat scholarship hunting like a job, it will pay off in the end.

5. Work Hard for that Money

While this may sound like a no-brainer, the best way to earn money is to simply get a job. Have your child work as much as they can. Work part-time during school and all summer long. Not only will it teach them a solid work ethic, but it will also teach them valuable time management. Both skills will serve them well in college and as an adult. 

Work Part-time While in College

By working during college, you’ll save for the next semester and offset living expenses so that your bank account won’t drain. There are lots of jobs that are study friendly. Many on-campus jobs have flexible schedules that will allow balance.

Become a Tutor

Tutoring is a great gig. There are plenty of benefits of becoming a tutor, such as building self-esteem, becoming knowledgeable about different subjects, and improving work and study habits. And tutoring is a flexible on-campus job that often pays well.

6. During College, Make Smart Money Choices

There are many ways to save money during college:

• Plan to graduate within four years: Make every credit count by making a plan to get your degree as quickly as possible. 
• Pick the most affordable meal plan: Meal plans are more expensive than groceries. Teach your child to cook for themselves instead of using the cafeteria.
• Borrow, rent, or buy used textbooks: New books can be a huge expense. Check your college library or on Amazon to rent or borrow the books for much less. 
• Use free or discounted campus resources: Gyms, IT services, stores, counseling, and other student services are available to students for free or for small fees.
• Maximize your student discounts: On and around campus, many businesses offer discounts to college students. Find ways to make these discounts work for you.
• Walk, bike, or carpool: Use local transportation rather than taking a car to school. Having a car adds a lot of costs, such as parking, gas, and insurance.
• Live within a budget: Budget how much you need and have for each month and then live within your means.
• Cut back on extravagant events and excursions: If missing front row seats at a concert means no student loans, skip the concert.
• Apply for Free Application for Federal Student Aid (FAFSA) every year. There is $2.3 billion in federal grant aid, but you won’t get any if you don’t try.

By living frugally during college, your child will learn to be budget savvy and financially responsible. And always remember being thrifty isn’t a dirty word. Debt is.

Consider Living at Home

While it is great to be out on their own, living at home can save substantial amounts of money for college students. Housing is the most significant college expense after tuition. By living at home, you can cut your college expenses significantly.

You Can Pay for College Without Going Into Debt

By following these strategies, your child can go to college without going into debt. The sooner you create a plan and start saving for your child’s college expenses, the better off they will be. Work as a team and be honest about how much college costs. Your child will thank you for teaching them about how to work and save money.