Yahoo Finance How to Attend College Without Student Loans
With the total amount of student loans topping $1 trillion, it is no wonder that people are looking for alternative ways to pay for college. According to Mark Kantrowitz, publisher of Edvisors, a site that helps students figure out ways to pay for college, 2015 college graduates will leave college with an average of $35,051 in student debt -- a record high.
Is it possible in today's world to graduate and avoid being one of the roughly 70 percent of college graduates who get student loan bills along with their college degree? For many students, there are options that can help reduce the amount of loans amassed.
Here are six things college students can do that may help cut down or eliminate the amount of student loans they need to take out as they work toward their degree.
1. Work while attending school. Even if it means that it may take longer to graduate, it might be a good idea for you to work as you go through college. Many students work full time and go to college part time, or go to school full time and work part time. Any type of income you can bring in as you go to school will be extra money you can put toward tuition to help you avoid amassing student loan debt.
2. Sign up for a work-study program. Students who quality for financial aid for college may also qualify for the Federal Work-Study Program. With the work-study program, students are given jobs (both on-campus and off-campus) that provide income that can be used to pay for college. As a bonus, the jobs must be related to your course of study, which means work-study jobs can help you network with people in your field before you even graduate. To learn more about qualifying for work-study programs, visit the government's Federal Student Aid website.
3. Apply for scholarships. According to College Planning Services, which helps families develops college funding strategies, there are $46 billion in college scholarships awarded each year by the Department of Education and another $35 million awarded each year by private companies, foundations and civil groups. These scholarships are often merit-based. With the hundreds of thousands of scholarships awaiting college students each year, it's vital that students research potential scholarships that may be available to them. Again, the government's Federal Student Aid website is a great resource for students and parents to learn how to find potential scholarship monies, how to apply for scholarships and how to avoid scholarship scams.
4. Apply for grants. As with scholarships, grants are another form of free money offered to college students who meet certain criteria. College grants can come from federal or state governments, colleges and private or nonprofit organizations. Whereas scholarships are often merit-based, grants are often need-based, focusing on students who qualify based on their financial situation or other life criteria. One thing to keep in mind about grants: They sometimes carry a caveat that they have to be paid back if a student withdraws from school early.
5. Set up a crowdfunding site. Crowdfunding is the newest way students are getting help paying for their college educations. There are several crowdfunding sites college students use to try and raise money for their college tuition bills, such as GoFundMe, DreamFund, Indiegogo, Zerobound and YouCaring. On a crowdfunding site, you'll share your personal story and why you think it would be a wise investment for potential donors to help you pay for your college education. If you think you've got a compelling or inspiring story to tell about your pursuit of a college degree, you may want to give crowdfunding a try.
6. Take advantage of employer reimbursement programs. Many employers will reimburse employees for part or all of their college tuition costs, especially if the courses are related to their current field. The IRS does set limits on how much money an employer can write off each year for college reimbursement. However, some employers may choose to go above and beyond those limits and pay for college classes for their employees even without the write off. Check with your employer today, and see if college tuition reimbursements are available. If you're just starting college and not yet working, consider applying for a job at a company that offers tuition reimbursement.
Just because student loan debt is on the rise in America, it doesn't mean you have to join the debt party. Take advantage of one or more of the opportunities above to help pay for your college costs and minimize -- or eliminate -- the amount of money you'll need to take out in student loans.
Deacon Hayes is a financial expert and founder of Well Kept Wallet, a financial education company that provides personal finance curriculum for people across the world.
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