06 Jul 15 Ways to Pay for College Without Going in Debt
Just about anyone can take out a loan to pay for college, but who wants to be in debt for years (and even decades) to pay back those student loans? If you’d like to stay out of debt while attending college, here are 15 ways to pay for college without going in debt.
#1 SCHOLARSHIPS – The most common way to pay for college is through scholarships. There are scholarships available through just about every college, and then there are outside, private scholarships as well. Research scholarships that are available through your parents’ employer, through local businesses, and online opportunities.
Don’t forget that there are unique scholarships out there, too, that are not only given for sports or academics but also for creativity. For example, the Duck Tape company has a scholarship contest which rewards a couple with $10,000 each for creating the best Duck Tape-inspired prom outfits! (No, I’m not making this up!) If you’re a vegetarian, you could be awarded a scholarship from the Vegetarian Resource Group!
Remember, the great thing about scholarships is that you don’t have to pay them back! But you have to apply for them to have a chance to receive them! So start applying!
#2 GRANTS – Like scholarships, most grants don’t need to be repaid. They are awarded by colleges, states, and the federal government. You usually have to meet certain criteria to be awarded a grant, which is determined by your Free Application for Federal Student Aid (FAFSA). Be sure to fill this application out as soon as possible (starting October 1 for the following academic year) as aid is granted on a first-come, first-served basis.
#3 WORK/STUDY JOB – Colleges offer on-campus or near-campus jobs for students so they can earn money to put toward tuition or other expenses. In order to qualify for a work/study job, you have to fill out the FAFSA to determine how much you can be awarded for the year.
#4 COMMUNITY COLLEGE – Instead of going to a four-year institution, consider completing some of your basic classes at a less expensive community college, then transferring if you need to. This can save you lots of money.
#5 LIVE OFF CAMPUS – It can be a lot cheaper to live in an apartment with some friends than to live on campus in the dorms. Explore this option if it’s permitted by your college of choice.
#6 EMPLOYER REIMBURSEMENT PROGRAMS – Some companies like IBM, Chipotle, Starbucks, Walmart, and Chrysler offer employees special perks to help pay for college. Details vary by company, so if you have to work, why not work at a place that will help cover the costs of college?
#7 GET A JOB – This may seem like a no-brainer, but don’t overlook it. When you work a side job while attending school, it can help cover some of your expenses like books, lab fees, or other miscellaneous student costs.
#8 SCHOOL CHOICE – Schools can vary greatly in cost, so do your research and choose a school that’s easier on your budget but that still offers what you need. Some schools offer more financial assistance than others. Ask questions and compare.
For example, there are some very unique colleges out there like College of the Ozarks in which no tuition is charged, all students work on campus, and no loans are accepted.
Remember that public colleges are usually less costly than private colleges, and if you can go to a school in the same state that you live in, you can save money that way too (in-state tuition versus out-of-state tuition).
#9 GET GOOD GRADES – If you keep your grades and GPA up and/or score well on your ACT or SAT, many colleges will give you an automatic discount on tuition—sometimes for your first year only, sometimes for all four years! So keep those grades up!
#10 START A 529 PLAN – The best case scenario is to start a tax-advantaged 529 plan for a young child so the money can grow over time. However, it’s never too late for this option either. Talk with a trusted financial planner for more details about this option. There is no guarantee that the plan will grow to cover college expenses. In addition, depending upon the laws of your home state or designated beneficiary, favorable state tax treatment or other benefits offered by such home state for investing in 529 college savings plans may be available only if you invest in the home state’s 529 college savings plan. Any state-based benefit offered with respect to a particular 529 college savings plan should be one of many appropriately weighted factors to be considered in making an investment decision. You should consult with your financial, tax or other adviser to learn more about how state-based benefits (including any limitations) would apply to your specific circumstances and also may wish to contact your home state or any other 529 college savings plan to learn more about the features, benefits and limitations of that state’s 529 college savings plan. You may also go to www.collegesavings.org for more information.
#11 NEGOTIATE WITH COLLEGE – This may come as a surprise, but colleges (especially private ones) are sometimes willing to negotiate with you if you can demonstrate a real financial need due to a special situation. They want you to enroll, so they may be open to increasing your merit-based assistance, too, if you have the courage to approach them about the subject.
#12 JOIN THE MILITARY – If you join the United States Military, you can take advantage of their college incentives and have college basically paid for in exchange for your service. After a certain number of years of serving, you can attend just about any college with your GI Bill. If you don’t use your GI Bill to go to college yourself, your spouse or children can use it.
#13 CLINICAL STUDIES – This may seem a little strange, but humor me. Companies pay big money for medical studies. Check out local opportunities for participating in a clinical study, and learn about how they compensate participants.
#14 DONATE PLASMA – Again, be open-minded about this. You can help others while you help yourself. By donating plasma as often as possible, you can earn money to make college more affordable. All it costs you is a little bit of time.
#15 CROWDFUNDING – Finally, here is another unique way to help fund your college education without going in debt. You never know how many people will want to help you until you put it out there. And the response may surprise you!
You can check out YouCaring and GoFundMe to help you get the word out easily and quickly. Most people are looking for ways to support those they care about, and this makes it super easy for them to do so.
To wrap this up, keep in mind that you will probably need to use several of these ways to completely pay for college. But think about it. Even if you use only a couple of these ideas, you’ll be better off and have way less debt (if any) than if you just took out loans to pay for everything.
This newsletter was prepared by a third party company to be used on the Russell & Company and Simple Money Tips for Women websites.
