Is it possible to avoid college debt? Check out these 6 strategies.
Some of my favorite financial statistics to quote are those surrounding college debt in America. To be honest, I’m kind of in awe of them…
…but not the good kind of awe.
As a former college teacher and the not-so-proud owner of an almost-paid-off student loan, the extreme nature of these statistics, which have increased at an exponential rate over the past 15 years, both amazes and concerns me. Need proof, check them out:
- The average college graduate in 2016 has over $35,000 in student loan debt
- In 2005, when I graduated college, that average was only $18,200
- Because of this extreme increase in borrowed money, student loan debt has skyrocketed to the number two form of consumer debt in America, second only to home mortgages.
- As of 2016, student debt in America totaled more than $1.3 trillion
- MarketWatch estimates that this total is growing at a rate of $2,726.27 every second
With numbers like these, it’s not hard to imagine why so many would-be college students are stepping back from their studies and why so many recent grads find it impossible to get a clean start in life after school. While there are a number of ways to get college loans forgiven, especially if you choose to work in certain industries, figuring out how to avoid college debt altogether is a much sounder strategy when it comes to long term financial stability.
What’s more, the ways to avoid college debt are simpler than they seem. In fact, the following six time-tested strategies can be used alone or in combination to get you a degree debt-free.
1. Crowdfund Your Education
In the age of tech startups everywhere and Kickstarter campaigns making multiple millions of dollars, selling your number 1 asset – yourself – has never been easier. Websites dedicated to crowdfunding charitable causes, general fundraising, and even college-specific expenses are easy to find. Through these sites, you can raise funds to pay for school, a special project, study abroad, and more. Most sites charge some sort of processing fee, but in the case of nonprofit and individual fundraising efforts, those charges are often minimal.
Depending on your situation, connections, and need, you can ask those you know, as well as those you don’t, for help by way of direct funding assistance.
Looking for a traditional approach? Consider GoFundMe, Indiegogo, or UpStart. Alternately, college and student loan-specific sites also exist. Check out ScholarMatch and AlumniFunder.
2. Transfer
Ivy league degrees look great on a resume, and, in certain fields like law and business, they can take you far. However, generally speaking, you only need to take half your total credits from one school (around 60 out of 120) to receive a degree from it.
Therefore, you can save money and avoid college debt by opting for a less expensive state school or two-year community college for the start of your education. Once you have taken care of general education requirements, you can transfer to a private school for the final two years (and your degree).
This simple strategy has been used for years by savvy students and, all told, can save tens of thousands off the total cost of a degree, especially if they’re not they did not think that far ahead as kids to take online jobs for 14 year olds. Take a look for yourself, the following figures show the average yearly tuition paid by students in each of the major college types. They are from the 2015-16 school year and provided by the College Board:
| School Type | Average 2015-16 Cost, Tuition and Fees |
| 2-Year In-State | $3,435 |
| Public In-State | $9,410 |
| Public Out-of-State | $23,107 |
| Private Nonprofit | $31,283 |
| Private for Profit | $15,610 |
3. Optimize Your Time in School
College degrees are granted based on number of credit hours completed, not number of years it takes to complete them. The “average full-time” college student should take between 4-5 years to finish a bachelors. However, these days, the “average” student actually takes 6 years to finish.
Taking longer to finish your degree may make sense if you are working while going to school. However when you consider that many institutions only charge nominal fees for added credit hours over “full time” status, you can see why it is so easy to rack up college debt by taking longer to finish your degree. Doing the opposite, actually taking more than the “required” full-time load of 12-15 credits per semester, can reduce the total number of semesters you are in school, and thus the amount of money you need to pay, by thousands or even tens of thousands of dollars – depending on the school. If you can add in AP or college credit obtained in high school to these totals, you can shave up to a year or more off of your total college experience.
Another option, and this is one I took advantage of myself, is to begin taking graduate classes before finishing your undergraduate degree. My last semester in college, I took two classes to finish my degree, one class for fun, and one graduate class. As a result, I was able to complete a 2.5-year Master’s degree in two years.
4. Get Into Grants
While most college-bound people know all about scholarships (and how hard they can be to obtain), there is another path to free money for school that many overlook: grants. Both federally and privately funded grants are a heck of a lot easier to obtain than scholarships and a legitimate way to avoid college debt through money you don’t have to pay back.
Most grants, however, are awarded based solely on need. Furthermore, they will not pay for all of your schooling. Grants are meant as a supplement to other forms of funding including scholarships, getting a job, and taking loans.
The most well known grants are all issued by the federal government. They are the Pell Grant, the Federal Supplemental Educational Opportunity Grant (FSEOG), and the Teacher Education Assistance for College Higher Educational Opportunity Grant (TEACH). However, there are also a number of grants issued each year by states, private organizations, and even schools themselves.
5. Start a Side-Business
As a full-time remote worker, I am able to fit in a lot of “life” around my work. Since I work freelance, I am able to set my own schedule, pay rate, and income levels to balance with my life and other needs. How I wish this was an option for me in college!
While my pay rate is higher because of my experience in the business, using any one of the many legitimate ways to make money from home as a college student is a great way to balance work and school. You can take on more projects during slow times in the semester, and back off during midterms and finals, for example. You can also use an internet side-business as a launching point for your career post-grad.
- Interested in marketing? Sell items on eBay.
- Want to teach English or go into journalism? Join me in the freelance writers party.
- Are you a computer science nut? Design websites or do some app coding.
- Is design your thing? Check out sites like Fiverr and Etsy and sell your graphics to grateful non-artsy types.
The sky is the limit here and the freedom and flexibility perfect for the college student’s constantly-changing schedule.
6. Join the Military
While this may seem extreme to some, using the G.I. Bill, now known as the Serviceman’s Readjustment Act, to fund all or part of your college education has been one of the most popular ways to avoid college debt since its introduction in 1944. Similarly, programs like the ROTC are another great way to get through school debt-free and have a job waiting on the other end of your education.
This is, clearly, only a viable option for those willing to serve in the military. However, for veterans, it is one of the best options for furthering their lives and careers. There are clear downsides to using military service to fund your education, though. At minimum, it may mean waiting to get a degree. There are also service contracts attached to ROTC programs. Yet, the benefits of a fully paid degree may far outweigh even that sacrifice and if you have a veteran/parent with unused benefits, you may be able to access the GI Bill with no service commitment at all.
To put this in perspective, a friend of mine recently received his Bachelor’s at the age of 31 after just over 8 years serving in the Army as a Staff Sargent. Though he never even planned on going to college, having the GI Bill money waiting for him was a huge relief that provided not only full tuition assistance, but a stipend for books and other living expenses. That’s right, folks, he got out of school with absolutely no debt (whereas I, as you will remember, am still paying that dastardly loan).
His advice for anyone looking to fund college through the armed forces – do it! He says:
Using the G.I. Bill was really easy. I was intimidated to enter school partly due to the “headache” I would incur to set it up – like most things from the military. But when I applied, I was quickly contacted by a VA rep on staff at the school, who sorted everything out for me. My only requirement was to pass my classes. It was a huge relief to have someone on campus to facilitate the necessary actions/paperwork and allow me to focus on school.
