How to Get a Degree Without Debt

In 2021, the average student loan debt in the U.S. was $37,693. As the cost of college continues to skyrocket, the prospect of obtaining a degree without accumulating substantial debt may seem daunting. However, graduating debt-free is within reach if you start planning early. With careful planning, informed decision-making and a comprehensive understanding of available resources, you can pursue your degree while managing your debt burden effectively. Below you will find strategies and tactics that can bring you closer to your goal of graduating without the burden of student debt.

Student loans are one of many options when considering how to pay for college. From using savings plans and choosing affordable schools to taking advantage of financial aid opportunities and earning income, you have a variety of available tools. Explore the following sources of funds and strategies before deciding to borrow money.

Starting your financial planning for college early can make a significant difference in managing your education costs. Kick-start your savings as soon as possible and enroll in programs that allow you to earn college credits in high school.

Starting a college savings plan early can significantly reduce the need for loans. Consider a 529 plan, a tax-advantaged savings plan designed for future education costs, offering benefits like tax-free growth and withdrawals for qualified expenses. As a student, you can contribute to your own plan, and once you become of legal age, you can take control of the 529 plan. You can also open a bank account and start saving from part-time work. Many banks offer youth accounts for those under 18.

You can lower the overall cost of a degree by earning college credit early. One way to achieve this is through dual enrollment courses, which let high school students take actual college courses and get college credit during high school. Another strategy is Prior Learning Assessments (PLAs), which provide college credits for knowledge and skills gained outside the classroom, such as work experience or self-study. Advanced Placement (AP) courses are a popular form of PLA, allowing high school students to take college-level courses and earn credits if they perform well on the AP test. Taking dual enrollment and PLAs together can potentially help you save thousands of dollars and graduate in less time once you reach college.

The choice of school plays a significant role in managing your college expenses. There are various factors to consider when choosing a school, but if you want to graduate debt-free, it's important to consider affordability when making this decision. Here are some affordable school alternatives to consider to help keep your debt low.

In-state public universities often offer lower tuition rates for state residents. This can be a cost-effective option for students who want a four-year degree without the high price tag of out-of-state or private universities. Researching and comparing the tuition rates and financial aid opportunities at different in-state public universities is important to find the best fit for your budget and educational goals.

Starting at a community college and later transferring to a four-year institution can significantly reduce overall college costs. Community colleges typically have much lower tuition rates than four-year colleges and universities. Students can often complete their general education requirements at a community college and then transfer those credits to a four-year institution to complete their degree.

Online programs can offer more flexibility and lower costs than traditional on-campus programs. They eliminate the need for commuting or relocating, which can save a significant amount of money. Many online programs offer asynchronous classes, allowing students to work part-time or full-time while earning their degree. Ensure the online program is accredited and that the credits will be recognized by employers or other educational institutions if you plan to transfer.

Financial aid is crucial in making college affordable and minimizing student loans. Various options exist, from scholarships and grants to work-study programs and military benefits. A key step in accessing these resources is filling out the Free Application for Federal Student Aid (FAFSA), which can qualify you for a wide range of financial aid options.

Scholarships and grants are invaluable sources of financial aid that don't require repayment, making them ideal for funding your education. Scholarships are often merit-based, rewarding academic or athletic achievements, while grants are primarily need-based. The federal government offers grants like the Pell Grant for students with substantial financial need. This need-based award is worth up to $7,395 for the 2023-24 school year. Grant money is also targeted at students with specific career plans or family circumstances.

In addition to grants from the government and states, billions of dollars in private scholarships are awarded to students each year. Private scholarships cover many causes, so you can likely find one that aligns with your situation. Organizations grant scholarships based on various qualifying conditions, including student majors, disabilities and residency. Scholarships are available for women, veterans, minorities and other specific groups, providing vital support for students seeking higher education.

If you're a current or former member of the military or a dependent of one, you may be eligible for education benefits through the Department of Veterans Affairs (VA). If you served on active duty after the September 11, 2001, terror attacks and were honorably discharged, you may qualify for the Post-9/11 GI Bill. This benefit provides up to $26,381 for annual tuition plus money for housing and books. If your tour ended before 9/11/2001, you might qualify for the Montgomery GI Bill, which can give veterans as much as $50,000 or more for tuition over several years. These are just two of the many grants and education assistance programs available to veterans.

The U.S. government offers several education-related tax breaks through the IRS to support individuals pursuing a degree. Families with income levels below specific thresholds can benefit from various tax credits. The American Opportunity Tax Credit provides up to $2,500 per year for four years, available to individuals with adjusted gross incomes below $80,000 ($160,000 for couples). Smaller credits are available for higher-income individuals.

Additionally, the Lifetime Learning Credit offers up to $2,000 for those with modified adjusted gross income below $64,000 ($128,000 for couples). Unlike the American Opportunity Tax Credit, there's no limit on the number of times you can claim this credit, and it applies to undergraduate, graduate and professional degree courses. These tax breaks aim to encourage individuals to pursue higher education and ease the financial burden of college expenses.

Whether you have already graduated, secured a job or remain on the job hunt, check with your employer or potential employer to see if it offers a tuition reimbursement program. A tuition reimbursement program presents an affordable way to further your education while you are working. With the job market becoming increasingly competitive, employers are using tuition reimbursement as a means to attract and retain skilled employees. Employees typically seek approval before enrolling, pay upfront and receive reimbursement after completing the course. Some employers may require a minimum grade to qualify for reimbursement.

Earning income while attending college can be a practical way to offset education costs and reduce the need for student loans. From on-campus jobs to part-time work or internships related to your field of study, there are various opportunities to earn while you learn. Balancing work and study requires good time management, but it can provide financial benefits and valuable work experience.

Reduce your student loan debt by securing a federal work-study job through your school's financial aid office. These part-time positions, based on financial need, are available both on-campus and off-campus, often in community service roles with nonprofits or government agencies, paying the federal minimum wage. The benefits of work-study pay are twofold: it doesn't impact your financial aid eligibility like private-sector part-time jobs, and it accommodates student schedules, avoiding conflicts with classes. Applying early for a work-study position is also to your advantage because the number of work-study positions is limited.

Waiting tables, lifeguarding and working retail are time-tested ways for students to pay down some of their college costs. Students who work can make up to $6,660 a year without affecting their financial aid eligibility. In other words, earning too much will reduce the amount of financial aid you receive. You'll have to gauge the costs and benefits of part-time work.

Internships are work-experience programs that allow you to gain practical experience in your field of study. They can be paid or unpaid, and some offer academic credit. Internships can be an excellent way to put classroom learning into practice in real-world scenarios.

However, some internships are unpaid, which won't help with immediate college costs, and they may require a significant time commitment, which can interfere with classes or study time. Despite these potential challenges, internships provide opportunities to network with professionals in your field, which can be beneficial when you're ready to start your career. Some internships may even lead to job offers after graduation.

The growing popularity and acceptance of crowdfunding are giving cash-strapped students a new way to raise money for their tuition and educational costs. Typically conducted online, crowdfunding allows students to seek out small cash donations from many individual contributors. By pooling together these individual donations, students can amass large enough sums to pay for school costs. With an effective online pitch, you can persuade friends, family members and even strangers to contribute to your cause — in this case, your education.

While exploring different ways to fund your college education is important, it's equally crucial to consider how you can manage and reduce your overall college costs. There are several strategies you can employ to keep your expenses in check. Remember, every dollar saved is a dollar less you need to borrow or earn.

The number of schools offering free tuition has decreased over the years due to financial difficulties, but a few no-fee alternatives still exist. However, they tend to be highly selective. Keep in mind that while the tuition may be free, additional expenses such as room and board, books and fees may still apply, so it's crucial to consider the total cost of attendance.

Source: EduRank

Graduating from college without the burden of student loans can open up a world of opportunities. Without the cloud of debt and countless monthly payments hanging over your head, you can pave the way for a more financially prosperous life.

Achieving a debt-free college graduation can be a complex journey, and you may have several questions about how to achieve this. Here are some of the most frequently asked questions about graduating without debt:

• AmeriCorps: AmeriCorps offers education awards that can be used to pay for college or to repay student loans in exchange for community service.
• Cappex: Cappex provides tools for students to search for scholarships, colleges and financial aid opportunities.
• CareerOneStop: CareerOneStop is a U.S. Department of Labor-sponsored website offering a variety of resources to explore careers, find education and training opportunities and access job search strategies and labor market data.
• Chegg: Chegg offers a variety of resources for students, including textbook rentals and online tutoring services, helping reduce the cost of course materials and academic support.
• College Affordability & Transparency Center: This site ranks colleges and universities by tuition costs and net prices in its effort to promote transparency.
• College Greenlight: College Greenlight is a platform that supports first-generation and underrepresented students in their college search and scholarship applications.
• College Scorecard: This website, provided by the U.S. Department of Education, offers data on colleges and universities, including costs, graduation rates and average debt incurred by students. It can help students make informed decisions about where to apply.
• Fastweb: Similar to Scholarships.com, Fastweb is another platform that connects students with scholarship opportunities tailored to their profile.
• Federal Student Aid (FAFSA): The Free Application for Federal Student Aid (FAFSA) is a crucial resource for students seeking financial aid. It determines eligibility for federal grants, work-study programs and loans. Students can complete the FAFSA online at fafsa.gov.
• Finaid.org: This website provides a comprehensive overview of financial aid options, including scholarships, loans and savings plans.
• National Association of Student Financial Aid Administrators (NASFAA): NASFAA provides resources and guidance on financial aid and college affordability.
• National Student Clearinghouse: This nonprofit organization provides educational verification and financial aid services to students and educational institutions.
• SALT: SALT is a free resource that provides financial literacy tools and advice for managing student loans and expenses.
• Scholarships.com: This website helps students search for various scholarships based on their interests, academic achievements and other criteria. It's an excellent tool to find scholarships that can offset college costs.
• StudentAid.gov: This official U.S. Department of Education website provides comprehensive information on federal student aid programs, loan repayment options and financial planning tools.
• TEACH Grant: The TEACH Grant is a federal program offering grants to aspiring teachers in high-need fields who commit to teaching in qualifying low-income schools.
• U.S. Department of Education: The U.S. Department of Education is a federal agency providing information and resources on federal student aid, grants, loans, education data and initiatives to promote access to quality education.
• Your college's financial aid office: Many colleges and universities have dedicated financial aid offices that can provide personalized guidance and resources to help students manage their college expenses effectively.