How To Pay for College and Avoid Debt: 8 Proven Strategies
You can graduate from college without crushing student debt. Start saving early, apply for every scholarship and grant available, choose affordable schools, and consider hybrid learning. If you're already struggling with student loan debt, professional debt management services can help you create affordable payment plans and negotiate lower interest rates.
Get Payment Plan HelpMore than half of college students graduate with debt. You don’t have to be one of them.
Americans owed $1.5 trillion in student loans at the end of March 2019. That’s more than double the amount from 2009. The average undergraduate leaves school with $35,000 in debt. With interest, it could take 30 years to repay.
Struggling With Student Loan Payments?
Professional credit counselors can negotiate lower interest rates and create an affordable payment plan that fits your budget. Get help before your debt spirals out of control.
Reduce Your Payments NowYou can get a college degree without drowning in student debt. You need a solid plan before you start school.
Facts About Student Debt You Need to Know
Student debt has become the second-largest form of household debt in America. Only mortgage debt exceeds it.
Here are the facts:
- Student debt has grown faster than credit card and auto loan debt since 2004
- The federal government holds about 92% of all outstanding undergraduate debt
- About one-third of adults under 30 carry student loan debt
- Many borrowers spend their middle-aged years still paying off college
The cost of higher education continues to rise. You need strategies to minimize or eliminate your need for loans.
8 Ways To Pay for College Without Going Into Debt
You can reduce or eliminate student debt with smart planning and action. These strategies work if you start early and stay committed.
Start Saving Before You Enter School
Every dollar you save now is one less dollar you’ll need to borrow later. Create a savings plan while you’re still in high school.
Open a high-yield savings account for your college fund. Use finance apps to track your progress. Even small amounts add up over time.
Saving builds good financial habits that will serve you long after graduation. Make it automatic with scheduled transfers from checking to savings.
Start a Side Hustle
Working part-time helps you avoid loans while gaining valuable experience. You need flexible work that fits around your coursework.
Consider these side hustle options:
- Freelance writing or editing
- Virtual assistant services
- Tutoring other students
- Creating and selling online courses
- Completing paid surveys
- Starting a blog or YouTube channel
- Grocery or food delivery
- Selling items online
- Photography services
- Web design or app development
Marketplaces like Upwork and Fiverr connect you with clients who need your skills. Work-study programs offer on-campus opportunities designed for students.
Choose Your School Carefully
Expensive schools aren’t always better schools. Look for colleges with below-average tuition costs.
Consider these affordable options:
- Local community colleges for your first two years
- Public in-state universities
- Schools offering tuition waivers
- No-loan colleges that exclude loans from aid packages
- Work colleges that offer free or reduced tuition in exchange for campus work
You can get an excellent education without paying premium prices. Research schools known for generous financial aid packages.
Apply for All Available Student Aid
Free money for college exists. You just need to apply for it.
Start by completing the Free Application for Federal Student Aid (FAFSA). The U.S. Department of Education awards about $120 billion in grants annually. The FAFSA determines your eligibility for federal, state, and school-based aid.
Search for scholarships aggressively. Every college offers them. Full-ride scholarships cover tuition, housing, food, and other expenses. Apply to as many as possible, even if you think you won’t qualify.
Don’t overlook smaller scholarships. Winning several $500 or $1,000 awards adds up quickly. Check your school’s website, local businesses, and national scholarship databases.
Try Hybrid or Online Learning
Online education costs less than traditional on-campus programs. You save on housing, transportation, and campus fees.
Hybrid learning gives you flexibility to work more hours without sacrificing your education. You can keep your current job or expand your side hustle. Many reputable schools now offer fully online degree programs.
Online programs often let you learn at your own pace. You might complete your degree faster, saving an entire year of tuition.
Create a Budget and Cut Your Expenses
Tracking your money is essential. Create a budget for each week or month and stick to it.
Use these strategies to reduce expenses:
- Share off-campus housing with roommates and split bills
- Buy used textbooks or rent them
- Cook meals instead of eating out
- Use student discounts everywhere they’re offered
- Sell items you no longer need
- Walk or bike instead of driving when possible
- Choose generic brands over name brands
Ask your school’s financial counselor for help creating a realistic budget. Small cuts in multiple areas make a big difference over four years.
Need help managing your overall finances? Our partner Cambridge Credit Counseling can help you create a sustainable budget and reduce monthly expenses.
Negotiate Your Financial Aid Package
Financial aid offers aren’t set in stone. You can negotiate for better terms.
Review each aid package carefully. Understand which parts are grants (free money) and which are loans (borrowed money). Check for contingencies like maintaining a minimum GPA or enrollment status.
Contact the financial aid office if another school offered you more money. They may match or beat competing offers. Ask if additional scholarships or grants are available.
Be polite but persistent. Schools want committed students and may find additional funding for you.
Spend Less Time in College
The faster you graduate, the less you’ll pay. Accelerate your degree with smart planning.
Take advantage of these options:
- AP (Advanced Placement) courses in high school that transfer as college credits
- CLEP exams that let you test out of required courses
- Summer classes to stay on track or get ahead
- Accelerated degree programs that compress four years into three
- Dual enrollment programs while still in high school
Every credit you earn before starting college saves you money later. Many students can shave off a full semester or even a year.
Already Struggling With Student Debt?
Student loans may seem manageable when you sign for them. The reality hits after graduation when payments start.
If debt collectors are already calling about your student loans, you have options. You can negotiate settlements, set up payment plans, or explore consolidation.
Our partner Cambridge Credit Counseling specializes in creating affordable payment plans that lower your interest rates and reduce monthly payments. Their certified counselors work with your creditors to create a debt management plan you can actually afford.
Don’t ignore collection notices. Taking action now protects your credit score and stops the harassment. Professional help makes the process simpler and less stressful.