One of the biggest factors in higher-ed planning is determining how to pay for college without loans.
Here are some of our top tips for decreasing the out-of-pocket cost of higher education.
9 Ways to Pay for College Without Loans
As you begin researching ways to purchase school, remember that there are a variety of common misconceptions about debt-reduction strategies. Many of them have to do with the assumptions parents and students make about how scholarships are awarded, the function of grades and test scores in lowering college costs, along with a school's actual sticker price.
1. Choose Your College Wisely
The price of tuition, bills, fees, and textbooks can differ wildly among schools. Generally, public schools are cheaper than private ones, in-state tuition is cheaper than out-of-state, and community colleges are cheaper than four-year universities.
According to survey results from U.S. News, the typical price of tuition and fees for that 2023-2023 school year at a public college is $10,338 per year for in-state students, compared to $22,698 per year for out-of-state students. The 2023-2023 average cost for a private university is $38,185.
And yes, while a community college or in-state public school is usually more affordable than the usual private university, it's not always true. For example, some schools offer excellent financial aid packages to out-of-state students with higher grades. In some cases, students can qualify for more merit scholarships at a private college than they would reach a public one.
2. Find Merit Scholarships
Scholarships can produce a big dent within the total cost of school. Merit scholarships are awarded with different student's achievements or excellence in academics, athletics, music, or other areas.
Merit scholarships may be offered by the federal government (e.g. the nation's Merit Scholarship), state, and/or the university itself. There's also many private (merit) scholarship awards provided by charities, religious groups, community centers, and professional organizations.
The Army, Navy, and Air Force Reserve Officer Training Corps (ROTC) offer scholarships as well. Not all ROTC candidates be eligible for a scholarships, but many do. Students who pay a ROTC scholarship must serve in the military after graduation.
Generally, probably the most merit aid will come from the school itself. To determine what schools are the most generous with merit scholarships, try an online tool for example College Insights.
3. Find Colleges That Offer Need-Based Scholarships
Need-based scholarships are sometimes called grants. Recipients are usually chosen based on financial need, so many of these awards visit students from middle- to lower-income families.
Grants might be provided by state or local governments, religious or social groups, charities, and universities themselves. Remember, it is possible to negotiate a school's initial educational funding package to obtain more funding.
4. Determine if Your earnings Qualifies You for Authorities Grants
Federal educational funding is available through student education loans, but there are also grants. Unlike an education loan, a grant doesn't have to be returned.
Common examples are Pell Grants, that are based on financial need, and TEACH Grants, which are available for college students who plan to teach in a high-need field following graduation. There are even some grants that exist to international students.
The TEACH Grant Program provides qualifying students with grants up to $4,000. The maximum Pell Grant award changes annually. For instance, it's $6,495 for that 2023-2023 school year. Pell Grant recipients are only able to receive this grant “for no more than 12 terms or the equivalent (roughly six years),” according to studentaid.gov.
To be eligible for authorities grants, your student must complete and submit the Free Application for Federal Student Aid (FAFSA). This type can be obtained around the studentaid.gov website, and it is free to apply. After your child submits the FAFSA, the federal government will calculate their EFC: Expected Family Contribution. This is actually the number that schools use to find out eligibility for financial aid.
Be conscious that unless your EFC-specifically the amount of money the government thinks your loved ones are able to afford to put toward your student's higher education-is at or below a specific amount, you will not be entitled to Federal Pell Grant.
5. Apply for State and Local Grants
Federal college grants could be the most well-known, however, many states and communities offer grants to local students. Some states make use of a student's FAFSA leads to determine eligibility for grants while others possess a separate application process.
Local governments offer grants to students with outstanding performances in athletics or academics. Could also be programs that award students who have returned for their community through service projects or volunteering. Local libraries are great resources on local and state scholarships and grants.
6. Ask About College-Specific Financial Aid
Many colleges their very own grants and scholarships, and it is easy to earn multiple awards. Based on the College Board, undergraduate and graduate students received a total of $71.1 billion in institutional grant aid in the 2023-2023 school year.
There are a few universities that offer automatic merit aid to students who've high GPAs and/or standardized test scores. There may also be scholarships available for outstanding athletes, musicians, and even entrepreneurs.
Some colleges provide need-based student aid too, that is usually based on financial eligibility requirements.
If your child is a member of an underrepresented group (e.g. first-generation university students), there may be additional grants available.
7. Research Tax-Deductible College Savings Plans
It's never too soon to begin saving for school. One of the best ways to develop a college fund is by using a 529 savings plan. The program allows you to put away money for school tax-free.
You can begin and contribute to a 529 arrange for your child, and it's also possible for your child to contribute to their own 529 account. Grandparents can make and contribute to a 529 for a grandchild too.
There are some important tax policies surrounding 529 plans, so you may wish to work with a CPA or financial advisor to look for the best savings strategy. The cash in this kind of checking account must be reported on the FAFSA, therefore it can affect your EFC and eligibility for financial aid.
8. Apply for Student Jobs
Not a lot of students can or want to rely on their own families for help with college costs. Earning their very own income can help cover the cost of higher education.
For an undergraduate student who would like to cover their own college expenses, if you don't take out an education loan for thousands of dollars, the best choice is to work. Students may want to have a gap year or two after senior high school to operate full-time and conserve for school.
Another option is to consider night classes or attend an online university while working full-time. Some employers offer tuition reimbursement to their workers, for part-time employees.
Filling the FAFSA might help your student qualify for work-study programs. Universities use EFC calculations to find out whether students qualify for on-campus work-study jobs.
If a student really wants to work and go to school concurrently, but doesn’t qualify for work-study, a part-time job can be ideal. Students who work can graduate college having a full, diverse resume that's prepared to catch an employer's attention.
9. Get Through College Quicker
Reducing the time it requires to get a degree can drastically lower the total cost. Shaving even twelve months from the typical four-year plan for a bachelor's degree can save 1000s of dollars in tuition alone.
How can your son or daughter complete their degree credits faster? Here are a few possibilities:
- Take AP classes. Earn college credits in high school by taking Advanced Placement classes. (Generally, a student must score at least a 3 on the AP exam to earn college credit for that subject.)
- Take CLEP exams. Earn college credits with College-Level Examination Program(R) tests in the College Board.
- Enroll in more college classes. Take the maximum number of credits allowed each semester.
- Take summer and winter break classes. These shorter courses are intense, however they cost less per credit and can lessen the time that it takes to graduate.
- Take online courses. Virtual classes can allow more flexibility for students who are juggling commuting, work and school, or other problems that might delay their degree completion.
- Attend college for that first two years. Many universities count college credits toward bachelor's degree requirements. (Some high schools allow students to attend college throughout their junior and later years to simultaneously earn senior high school and college credits.)
Another significant advantage of attending community college is your child don't have to survive campus, something many universities require of freshmen. Living in your own home can save money.
Can You Go to College Without a Loan?
While it will take some time and research, you'll be able to visit college without taking on debt. There are lots of programs and opportunities that can help reduce or eliminate the out-of-pocket price of a university degree.
For some options, just like a 529 savings plan and AP credits, starting early is important. But even if your student is already into their senior year of senior high school, you can use tools like College Insights to find colleges and universities that provide merit scholarships and have lower costs of attendance.