Back to School: How to Pay for College Without Loans

It’s no secret that college is expensive, and the costs seem to continue rising without an end in sight. The increasing cost of college has far outpaced inflation. According to the Education Data Initiative, “the average cost of college has more than doubled in the 21st century,” rising at a compound rate of 4.11% per year.

In 2024, the average cost of in-state tuition at a public 4-year college for one academic year is $9,750 while annual out-of-state tuition averages $28,386—and that doesn’t include living expenses and other costs. For those who attend a private 4-year college, tuition costs an average of $38,421. Considering the total cost of attendance, student loan interest, and loss of income, getting a bachelor’s degree could ultimately cost you more than $500,000.

With such staggering costs, paying for higher education without student loans can be a challenge. But it may be possible for some to get through school without taking on a student loan burden.

Let’s explore how you can manage this impressive feat.

Why Should You Pay for College Without Loans?

Before we jump into the logistics of paying for college without loans, let’s take a more detailed look at why you should try.

Financial Burden After Graduation

The average private nonprofit university student borrows $33,700 to complete a bachelor’s degree. As of 2024, the average amount of federal student loan debt per borrower is $37,853. And approximately 92% of borrowers have federal student loan debt.

The burden of student loan debt often puts undeniable pressure on young graduates. According to the Education Data Initiative, the average monthly student loan payment is between $200 and $299. That could take a significant bite out of anyone’s budget, especially graduates who are new to the workforce.

Not only is this monthly payment a drain on post-graduation finances, but the burden can also stretch out for years to come. It takes the average borrower 20 years to repay their student loans. For two decades, this monthly payment can force borrowers to prioritize debt repayment over other financial goals.

If you are able to leave college without any student loans, that can be a game-changer for your financial future.

Achievable for Many Students

Paying for college without student loans isn’t always easy. But in many cases, it’s an achievable goal. Even if you aren’t able to pay for your entire education upfront, anything you can do to lower your total loan amount is a big deal.

How to Pay for College Without Loans

Paying for college without student loans is a worthwhile goal. As a student, there are many different strategies you can pursue to achieve this goal. Let’s explore some of the top ways to pay for college without student loans.

Pick the Right School

Before you start paying for college, picking the right school can make a big difference to your bottom line. For example, the simple choice between a public or private school can mean a tuition difference of several thousand dollars.

According to the Education Data Initiative, the average annual cost of in-state tuition for a four-year public school is $9,750 per year. In contrast, the average annual cost of tuition for a private non-profit four-year school is $38,421.

Another strategy is to go to a community college for a year or two. After you knock out some college credits at an affordable price point, you can transfer to another school to finish your degree.

In general, choosing to go to a public school in your state will lead to the most affordable college costs. But in some states, colleges participate in undergraduate exchange programs, which means some out-of-state students can tap into in-state tuition rates. For example, the Midwest Student Exchange Program gives students from Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, and Wisconsin the opportunity to get tuition discounts at some public and private schools in the region. You can explore other tuition exchange programs through the National Association of Student Financial Aid Administrators.

It’s clear that picking the right school can lead to thousands of dollars saved before you even get your first tuition bill.

Get College Credit in High School

You can start earning college credit before you graduate from high school. In general, you can achieve this goal by taking advanced placement (AP) classes or dual-credit courses at your local community college.

If you can complete some of your basic college coursework before getting to campus, you can avoid paying for those classes. Although this strategy means putting in extra work while in high school, you could expedite your college graduation timeline and save money in the process.

For example, I left high school with 32 hours of college credit. I earned these credits by taking AP classes in high school and passing the standardized exam at the end of the year. When I arrived on my college campus, I didn’t have to spend time or money taking general education courses. Instead, I jumped straight into coursework that was related to my major.

If you can make this happen, it could save you a significant amount of tuition money.

Apply for Scholarships

The best part about a scholarship is that you don’t have to repay the funds. Many students overlook the possibility of earning scholarships for college. But the reality is there are countless scholarship opportunities available that could help you pay for your degree. Many organizations have scholarships available to help students pay for college. As a student, applying for these opportunities could lead to a significant windfall to help cover your college costs.

Some places to look for scholarships include large search engines, like FastWeb. But looking for scholarships at the local level is also useful. For example, you might find scholarships available through local organizations, like the Rotary Club or the American Association of University Women. Your high school guidance counselor is another source of information on potential scholarships in the area.

Don’t overlook scholarships with small award amounts. Even a reward of a few hundred dollars can make a dent in your college costs.

When you submit a scholarship application, take the time to make yours stand out. Also, don’t hesitate to apply for scholarships each year. Many scholarship programs are open to all students, not just freshmen.

Apply for Grants

Grants are another form of free money, which means you won’t have to repay any grant funds you receive. Federal and state governments both offer grant opportunities for college. If you want to get a college grant, the process starts by filling out your Free Application for Federal Student Aid (FAFSA).

Most grants are awarded on a first-come, first-served basis. With that, submitting your FAFSA on the early side is a good idea. Once you are accepted to school, you’ll receive a letter with your financial aid offers. If you are eligible to receive a grant, you can accept it through the school’s financial aid office.

Some grant opportunities require students to maintain a certain GPA. Take the time to review any eligibility requirements surrounding grants to increase your chances of qualifying for the grant each year.

Find an Alternative Living Situation

Tuition and fees aren’t the only costs associated with college. You’ll also need to cover your living expenses while you complete your degree, including housing, which is likely going to be the largest of these expenses. Of course, finding the most affordable housing solution can make a big difference to your financial situation.

It’s tempting to live in student housing right next to campus. But at many college campuses, on-site student living comes with a high price tag. With that in mind, you’ll need to get creative to lock in the lowest housing costs.

In general, moving further away from campus leads to less expensive housing. Splitting a place with multiple roommates can help keep your rent cost low.

But if you want to stay on campus, and live for free, consider applying to be a Residential Assistant (RA). RAs on many college campuses live in the dorms. They act like supervisors to make sure other students are following the rules in the dorms.

Another option for some is to live at home. If your parents live nearby and are willing to let you stay in your old room, this opportunity comes with significant savings.

Don’t be afraid to try an alternative living solution to lower your overall costs while pursuing your degree.

Find an Employer With Tuition Reimbursement

Some employers offer tuition reimbursement programs. While balancing college classes with a job can be difficult, it’s not impossible. The right employer perks can make the tough balance worth the effort.

A few employers that offer tuition reimbursement programs include Amazon, Chipotle, Discover, Disney, Papa John’s, Taco Bell, Target, Walmart, and Starbucks. Every employer has slightly different rules surrounding its tuition reimbursement program. Generally, you’ll need to work a specific number of hours to qualify. Most employers have a limit to your reimbursement, which could be as high as $5,250 per year.

Depending on your situation, the right tuition reimbursement program could make working while in school enticing. Even if you have to slow down the pace of your college coursework, this type of program could help get you to the finish line with fewer student loans.

Work on Campus

Many colleges offer work-study opportunities, which can help you pay for the cost of school. Federal work-study programs include part-time jobs for students who can demonstrate a financial need. You can find out about work-study opportunities through the financial aid office on campus.

If you don’t qualify for federal work-study programs, consider looking for off-campus job opportunities. Many businesses near campus may have roles open to students.

Build a Flexible Side Hustle

College coursework can be demanding. With a regular part-time job, it might be tough to balance your schedule. But a flexible side hustle could help you earn the cash you need without throwing your class schedule out of whack.

The nice thing about side hustles is that you can usually go at your own pace. For example, you might have 10 hours to commit one week but only five hours to commit the next. A flexible side hustle makes it easier to strike a balance that works for you.

A few side hustle ideas include teaching an exercise class at a nearby gym, dog walking, babysitting, freelance writing, selling crafts, driving for Uber, and making deliveries around town.

If you are willing to try some side hustles, you’ll find the one that best suits your needs.

Get a Summer Job

If you aren’t taking classes, the summer can be the perfect time to save up for the next school year. With more hours available in your day, you can commit to more work.

For example, let’s say you find a summer job that pays $15 per hour. If you work 10 40-hour weeks, that would lead to $6,000 in earnings over the summer. Consider using the proceeds from your summer job to offset your tuition costs.

Stick to a Budget

As you make your way through college, it’s often tempting to splurge along the way. Popular ways to spend money include going out on the town, joining a Greek organization, signing up for a study abroad trip, upgrading your living situation, eating out of the house, and generally enjoying life a bit more. While all of these options are exciting, it’s important to get clear about your wants and needs.

To avoid taking on student loans, prioritizing your needs over your wants is critical. Build a budget based on what you need to survive the semester. If you have room left over, then add in the fun extras.

It can be challenging to stick to a budget. But a bit of self-discipline on your spending now can afford you greater financial freedom in the future.

Try to make friends with the same mindset about getting through school without overspending. You might be surprised at how much fun you can have without spending a dime.

Frequently Asked Questions

Can You Pay for College Without Parents or Loans?

Yes, it’s possible to pay for college without parents or loans. But you’ll need to be resourceful as you navigate your degree.

How Much College Debt Is Too Much?

According to the Education Data Initiative, the total average student loan balance per borrower (including private loan debt) may be as high as $40,681. The amount of debt you can afford to repay varies based on your unique situation and earning potential.

The Bottom Line

Paying for college without student loans can give you more options after graduation. If you don’t have a monthly payment of several hundred dollars each month, you can use the funds for other things. Whether you use the funds to create memories or start saving for the future, the flexibility of having no student loan payments is something worth aiming for.

As you navigate your college choices, take action to avoid unnecessary student loans. Even if you aren’t able to completely avoid taking out student loans, making the effort to keep your loan amounts as small as possible will pay off after graduation.