10 Ways To Pay For College Without Going Into Debt
/Last weekend, I had the pleasure of being invited by the Alpha Kappa Alpha Sorority, Inc. group to speak with high school students and their parents on how to fund college. As of the end of 2019, over 44 million Americans hold $1.5 trillion in student loan debt. And over 40% of these individuals are in default with their student loans.
Me with the Alpha Kappa Alpha Sorority, Inc. ladies from UC Berkeley.
I have extensively covered the predatory nature of the student loan system and how the system is built to keep millions of Americans in a never-ending cycle of financial turmoil. With the rising costs of tuition and the decreasing return on investment of higher education, families are wondering if college is worth it- and if it is, how to pay for it.
Whether or not college is worth it to you is an individual decision. If you decide that it is, here are ways to pay for it without going into further debt.
Find a side hustle like Amanda Hutchinson. In 2019, Money & Mimosas featured a woman named Amanda who paid for her Master’s by teaching English to students in China. She was able to earn an extra $1,500 per month which paid for her schooling. Click here to read her story.
Apply for scholarships and grants. Free money is the best money. When it comes to scholarships, focus on local opportunities that range from $500- $5,000. These scholarships tend to have fewer applicants which will increase your chances of winning them.
Visit your local library. Your librarians will have the inside scoop on local organizations that provide financial support to students.
Ask your company’s HR director. There may be scholarship opportunities provided through your place of employment. Check with HR to see if they have a program.
Take AP classes. The more AP classes your child takes in high school, the better chance they have to test out of certain college classes. By testing out, they will not have to pay for the classes while in college because their high school courses will still count towards their degree.
Pick up a work-study job. While in school, I worked for one of the campus offices all four years of my undergrad. It was a great way to earn money, learn professional skills and meet new people.
Apply to become a RA or Apartment Manager. During my junior year of undergrad, I applied to be an apartment manager (similar to a RA) and received free housing. Typically this option is only available to sophomores, juniors and seniors. It is a time commitment, but well worth the extra effort.
Work during the summers. Saving up money during the summer to use for books or other college-related expenses will be a move you’ll be happy you made.
Open a 529 account. This is a tax-advantaged savings account for “qualified tuition plans”. It is sponsored by states, state agencies, or educational institutions. Do a quick Google search or check with your bank to see how you can open this account.
Have a candid conversation about college costs. This may seem simple, but research all of the hidden costs of college (such as food, transportation, greek life, textbooks) along with the stated tuition + room and board costs. Once you have a clear picture, then have a transparent, candid conversation with yourself and your child about how this will be financially feasible. Once everyone is on the same page, then you can create a plan to make it happen.
About Money & Mimosas: Money & Mimosas was started as a passion project by Danetha. A former NFL cheerleader turned entrepreneur, she started blogging as a way to combine all of her passions into a career. Money & Mimosas is now enjoyed by readers in over fifty countries with the same dream of achieving financial freedom without living frugally.
