How to Avoid College Debt

There are many methods to consider how to graduate with as little debt as possible. Below is a step-by-step guide for how to ensure you are paying the best possible price for college.

Apply for scholarships and grants

Seek out all available scholarships and grants that you qualify for and apply to as many as possible. When applying through the common app, you must include your social security number to be automatically enrolled in the financial aid process.

Many colleges will automatically consider students for college scholarships or merit awards, however, others will specify in the Other Deadline Information section in the common app under each specific school about particular deadlines and awards. Take a look at Villanova’s just as a sample:

Plan to work part-time or during summers

During the summer months, many businesses are looking for part-time help, especially in resort destinations, some of which even provide free housing. It is best to line up a few part-time positions to help cover your housing, food, and incidental expenses, most of which can be made up for during three months of work.

Additionally, many students qualify for on-campus jobs called work study in which their financial aid status qualifies them for hourly positions. During my college experience, some leadership opportunities like becoming an executive tour guide or working with the remote graduate classes were the highest-paying jobs on campus. There are many creative ways, including building a side hustle by selling items on Etsy or babysitting for families local to your university that can help make ends meet. 

Choose an affordable college

This should go without saying, but weigh your options and financial aid packages. If your intended degree is in finance or engineering you must look for programs that offer incredible internships and co-ops, this is not always clear from a cursory check of any university website.

Do your homework on the year-after-year costs and even utilize the study out of Georgetown University where they look at 10, 15, 20, and 25-year rates of return on your college investment to help you determine which is your best bet. It makes sense to look for schools with lower tuition costs or consider starting at a community college for the first two years and then transferring to a four-year institution. 

Utilize College Savings Plans

Long before you head off to college, it is wise to set up a 529 savings plan, Education Savings Account (Education IRA), Uniform Transfer to Minors Act (UTMA) or Uniform Gift to Minors Act (UGMA). This is where consulting with a financial planner specializing in education savings and versed in building generational wealth is essential. There is so much I wish I would have known in terms of financing college other than avoiding loans at all costs, but with advice and some planning, you can cover your education expenses. 

Live frugally and Track Your Expenses

Adopt a budget-conscious lifestyle while in college, plan meals, shop carefully, and avoid unnecessary expenses will help you avoid overspending on credit cards or needing to take out costly student loans. Be mindful of spending on non-essential items like entertainment, eating out frequently, or buying expensive gadgets. Be sure to utilize discounts at your favorite stores like ASOS, Club Monaco, Champion, J. Crew, Madewell, Vineyard Vines, Grubhub, Waffle House, AMC Theaters, and more. 

Additional Ways to Save

You can work for the college or university you hope to receive a degree from, typically they offer tuition-free coursework while you get paid. You can complete your degree through AmeriCorps or Peace Corps and additional funding for college is a benefit. There is always joining the military through ROTC to pay off your student debt.

Your high school employer may also have college benefits for you, McDonald’s, Target, supermarkets, movie theaters, and many other companies offer employee matching programs and specialized scholarship programs; it is a terrific idea to check those out as well. Additionally, depending on how high your GPA is, scores on AP tests, and scores on ACT and SAT may offer you additional financial benefits when trying to offset the costs of college.

Also, if you do well in your first few semesters it would be wise to revisit scholarships and merit options with student services and the financial aid office. You never know what money is available unless you ask.

Just as a fun (or not so fun) fact, did you also know that student loans are very difficult to forgive in the case of bankruptcy? That makes it even more important to understand the gravity of this investment to ensure that borrowers will be able to repay it. 

By implementing these strategies, students can reduce their college costs and potentially graduate debt-free or with minimal debt, providing them with a strong financial foundation for their future. Remember to verify the information with up-to-date sources as the college landscape and financial aid options may change over time, but these are terrific resources to start with to fund the next stage of your life.