Ways to minimize student loan debt: New and reliable ideas
So many students in the US are wrestling with student loan debt, but knowing ahead of time some creative ways of avoiding student loans can help you make college more affordable in the moment and for years afterward.
Right now, millions of people are trying to manage a total of over $1.75 trillion in student debt. It’s a huge number that shows how common this challenge is for college students, making it a shared experience for many.
For students and their parents planning for college, it's important to know that the average debt can be between $30,000 and $40,000, but this varies greatly depending on where they go to school and what they study.
Paying this back can be tough, especially when jobs that pay well right after graduation aren’t guaranteed. This kind of debt can hold people back from doing things like buying a house or starting a business later on.
$30– $40k
Average student debt
However, there's good news too. There are plans and programs that can help pay for college without loans or at least ease the financial burden, and there are tried and true ways to save as well. There’s even a new, creative tool we’ll discuss below.
Knowing what’s out there can help you make smarter decisions about paying for college, making the future a little brighter and less worrisome.
Time-tested strategies to pay for college without loans
If you’re averse to taking out loans to pay for higher education, the good news is there are many ways to fund your learning.
Classic methods include scholarships, grants and work-study programs, but it’s important to note that each of these often has its own requirements. And, each may fund only certain needs.
Beyond these methods, the military and community college are also solid ways to minimize student loan debt. We’ll start with community college.
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Community college
Community college is one of the savviest ways to attain higher education with less debt. Many states allow students to complete community college courses while in high school, reducing the number of credits a student needs to pay for at their four-year institution. And, community college credits almost always transfer to colleges and universities in the same state — often the credits will transfer out of state, too!
The value is clear when you shop prices. Check out nationwide annual tuitions:
More and more, students are avoiding student loans by opting to complete their general education requirements at community college and their major coursework at a four-year university. When you look at prices, it’s clear why!
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Scholarships
Scholarships are probably the best-known and least-understood of all ways to minimize student loan debt. Many believe scholarships are only for the academically best and brightest, but that’s not always the case. There are need-based scholarships, scholarships for specific trades and degrees, scholarships for particular ethnic groups and so much more.
Scholarships may cover all or some of the cost of higher education. If you’re looking at scholarships at schools you or your student would like to attend, it’s a good idea to call your prospective colleges’ admissions departments for the requisite information.
Additionally, hundreds if not thousands of organizations across the country and the world offer scholarships, so, if you have an interest, focus, passion or hobby, there’s a chance there’s an organization you could apply to for a scholarship.
Please note, though, that there are a lot of websites out there that advertise scholarships or a scholarship database that are in fact trying to steer students to loan providers. Be careful and do your research.
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Grants
Grants are another way to receive larger sums of money from one source. Your colleges or universities of choice may offer some grants, so, again, do ask the admissions departments at these institutions. The government is also a big issuer of grants. It’s a great idea to see if you or your student may qualify for Federal Pell Grants or state grants.
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Work-study program
If you think you’ll have time beyond what you need to commit to your studies, your chosen institution may offer a work-study program. These programs are almost always under the authority of the Federal Work-Study Program, so there will likely be very specific requirements to participate. Again, check with your schools of choice!
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Tuition assistance
Staying with the topic of jobs, many employers offer tuition assistance. Some will even pay for the full cost of your education. This can be a great way to cover part of the cost of college while working. There is no single list of all the companies offering this great benefit, but here’s a 50-entry article that can get you started.
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Military service
Still on the topic of jobs but requiring more of a commitment: Military service may be one of the financially solid ways to minimize student loan debt. Qualifying veterans can take advantage of the GI Bill. This benefit pays quite a lot: the full cost of attending a public, U.S.-based higher education institution or almost $30,000 toward the cost of a private institution. It will even pay for trade school, flight school, or correspondence school.
If you’re not a veteran, you can still receive support from the military to attend school. The Reserve Officers Training Corps (ROTC) is a program designed to train officers for the U.S. military’s service branches. Students train during school and receive financial support, too. In exchange for the financial support, students commit to a term of service after graduation. While almost every military branch participates, the Army’s program purportedly pays out the most.
Avoiding student loans with AutoGive
Now, even if you do secure a scholarship, a grant or a work-study position, chances are that the full cost of your college education won’t be covered — very, very few are lucky enough to secure a full-ride, all-expenses-paid degree.
The data supports this: While over 1.7 million scholarships are awarded each year, only 7% of college students receive one.
But, that’s okay — millions of people make it work: They get through college, land a job and get on with their lives. But, what if there was a way to ease the financial burden some during college, and on a monthly basis? Help with rent, groceries, books, bus or rideshare fare, etc. is sure to make getting good grades all the easier.
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This is where AutoGive can help. AutoGive is a creative way to pay for college — a way to have your family, friends and wider network help you or your student with the expenses associated with college on an ongoing basis.
With AutoGive, you invite family and friends to collectively chip in as much as they’re willing to on a monthly basis. $5 or $10 a month spread across 20 or 30 people can really add up, especially month to month, and year to year.
The recipient receives funds quickly and without fees — those are covered by the contributors. Funds can help with college expenses whether direct or indirect, from tuition to books to food and transportation.
AutoGive group organizers can even post private updates so members can share in the college journey, too. In this way, AutoGive is both a tool for financial security and bonding.
Create your group today, and take some of the anxiety out of paying for college.
