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Going to college is becoming more expensive. Data from 2024-2025 from the Education Data Initiative shows that the average cost is $38,270 per student per year. The average cost of college has more than doubled in the 21st century.

With the high cost of college, many students are taking out loans. Avoiding loans may be a better option to ease debt after graduation. If you’re wondering, “How to pay for college without loans?”learn more with this guide. 

7 Ways to Pay for College Without Loans

1. Apply for Scholarships

One of the best ways to secure free money for college is to apply for scholarships. If you’re a good student, you can apply for merit-based scholarships. For those who are on a tight budget and need money for college, need-based scholarships are also available. Check out these resources on where to find scholarships: 

• Fastweb: Over 1.5 million scholarships are available. Fastweb uses your profile to suggest opportunities. 
• Scholarships.com: An algorithm is used to match you with millions of opportunities on Scholarships.com.
• BigFuture by College Board: Many students will be familiar with the College Board. They have 6,000 opportunities on this site. 
• Bold.org: User-friendly interface partners with donors to create scholarships, fellowships and grants for students who qualify. 
• ScholarshipOwl: This site uses AI to help students find opportunities. Although part of the service is free, you will be charged for more specialized services. 
• ProFellow: This site is available for those seeking graduate education. 

Tips for Writing Winning Scholarship Applications

You need every advantage when applying for scholarships. Here are four tips to write your application:

1. Study the prompt carefully. Make sure you know exactly what the prompt is asking. 
2. Personalize your story. Use a unique experience to align your story with the organization’s goals. Do not list only your achievements. 
3. Highlight your impact and growth. Show your growth and how you have made a difference. 
4. Be genuine. Try to be specific and authentic. Avoid being too generic in your response. 

2. Look for Grants and Free Aid

Grants are opportunities for free money, while loans allow you to borrow money, which you must pay back with interest. Here are other key differences. 

Where To Find Grant Resources

Here is a list of resources for various grants: 

Did You Know?

At the end of 2024, the average student loan debt was $38,375.

3. Choose an Affordable College or Community College

Starting at a community college can save you several thousands of dollars.

For the 2024-2025 school year, the public two-year tuition average cost in-district is $4,050. A public in-state university costs on average about $11,610, and an equivalent private education out of state costs $43,350. Community college is significantly lower than a four-year education out of state. In-state tuition at a two- or four-year institution can be significantly cheaper. 

Other advantages of attending a community college are potentially smaller class sizes, easier financial aid coverage and reduced overall cost. It’s relatively more affordable to explore different classes or even switch your career focus. 

Before enrolling in the classes at your two-year community college, make sure those credits will transfer over to the four-year university you wish to attend. 

4. Earn College Credit in High School

You should consider placement exams to test out of certain courses while in high school. Advance Placement courses are available in high school, and you can test out of these courses and earn college credit. 

The College Level Examination Program offers 30 exams in math, science, history, and business and foreign languages. The exam costs $93, and many colleges will give you credit if you pass. 

5. Apply for Employer Tuition Assistance 

Some companies offer tuition assistance to their employees. Companies like Amazon, Walmart, UPS and Starbucks offer tuition reimbursements so that you can earn college credits while you’re working. Even smaller companies offer this reimbursement program, so you should inquire about this potential option. 

How To Use Employer Benefits To Pay for School

Find out what your employer offers in terms of benefits and understand the rules that apply. Some companies only pay for certain degrees and some may have work requirements; for example, you must be employed for a year or more.

Get preapproval from your company for the classes you’d like to take. You may have to initially pay for your classes, but you can submit a reimbursement request to get compensated. 

6. Consider Income Share Agreements 

An income share agreement is an alternative way to pay for your education without having to take out a loan. In an ISA, you borrow money upfront and agree to pay a fixed percentage of your income when you graduate. 

Pros and Cons of Paying Tuition Through Future Earnings

Here’s a breakdown of the pros and cons of paying your tuition later.

Pros

• No debt in the traditional sense
• Repayment is income-based
• School covers costs while you study

Cons

• Limited availability — only certain schools offer this option.
• Some agreements have complicated terms.
• You may pay more than you borrowed if you get a high-paying job.

7.  Use a Work-Study Program 

A work-study program allows you to work on campus while helping reduce your tuition costs. Most of these jobs are on campus and may include working as a lab assistant, resident assistant, research aide, financial aid office clerk and more. 

Eligibility and How To Apply

To be eligible for this program, you must demonstrate a need for financial aid and be enrolled at least half-time in an eligible school. Only U.S. citizens or qualified non-U.S. citizens can apply. 

To apply, you need to do the following: 

1. Fill out your FAFSA.
2. Indicate on your FAFSA form that you are interested in federal work-study.
3. Your financial aid package from the college will let you know if you qualify.

Comparison of College Payment Options

Comparing college payment options can help you decide which choice you want to consider. Take a look at this breakdown: 

How To Create a Debt-Free College Plan

You need to follow a process to create a debt-free college plan. Here are some proactive steps you can take: 

1. Research and apply: Search for multiple scholarships and grants across several different resources. 
2. Make an affordable college choice. Consider attending a community college in-state or an affordable four-year university. 
3. Choose work-study or a job: Part-time job opportunities or work-study programs can help lessen some of your tuition costs. 
4. Live at home: You can reduce your room and board expenses by living at home. 
5. Research your company’s tuition assistance programs: Some companies offer full or partial tuition reimbursement opportunities. 

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