6 Ways you could attend College without having to pay off student loans

"I can personally attest to this route since I have thus far an Associate’s degree in Financial Management, a Bachelor of Science in Business Administration, and a Master of Business Administration degree 100% paid for by the United States Air Force."

College is an amazing way to advance in your career or to just simply invest in yourself by expanding your education. However, many people attend college without really approaching it strategically and thinking it through financially long-term. It is a major life decision that deserves that kind of attention. Let me explain.

According to an article written by NBC News, over 44.7 million Americans have student loan debt. NBC News obtained this information from a 2018 report done by the Federal Reserve Bank of New York. 44.7 million Americans is- A LOT! Student loans account for over $1 trillion in debt in America.

Yes, having a degree and investing in your education is a smart idea but it is imperative to think it through and approach it the right way. Think outside of the box. Some questions that you have to ask yourself before attending college is…

1.       Is a college degree really needed for the field that I would like to work in?

2.       Will the degree help me advance in my career or obtain a great career? (FYI no degree is 100% guaranteed to help you obtain a career and keep you gainfully employed)

3.       Am I actually going to work in the field that my degree is in or is the degree applicable to my future/desired career?

4.       Is my selected college actually affordable and within budget?

5.       Arguably the biggest question that you need to ask yourself and the one that I will be discussing is, how am I going to pay for college?

I would recommend that every individual really think these questions through before attending a college or university of their choice.

“Well Ben, What can I do to avoid student loan debt?”

There are a few ways that you can attend college without becoming a part of the statistics.

Roughly $35,000 is the average student loan debt per borrower according to Experian and other sources. Do you really want to graduate from college and have to pay off over $35,000 in student loans over the next decade while working?

If your reply to my question was “No!”, then here are 6 ways to pay for college while avoiding student loans:

1. Join the Active Duty Military!

Not everyone can and will qualify for military service, others just do not desire to serve. I understand. If you meet certain requirements though while serving, the military helps pay for college. The military offers a few different tuition assistance programs such as ‘Tuition Assistance’ for active duty, in addition to the Montgomery GI Bill, or the Post-9/11 GI Bill. Certain military branches also offer college fund programs and loan repayment programs depending on your circumstances. You can also earn college credits through your experience in the military relating to your career and through free CLEP examination tests if you choose to go that route. Branches of the military also have their own professional military education schools which offer college credits and/or an actual degree upon completion.

Even selected military reserve and National Guard units also offer a Tuition Assistance program, although the benefits may vary from the full-time duty program if you just want to serve in the military part-time (Typically one weekend a month, two weeks a year for Annual Training).

Upon becoming a Veteran, you also unlock certain Veteran Benefits.

I can personally attest to this route since I have thus far an Associate’s degree in Financial Management, a Bachelor of Science in Business Administration, and a Master of Business Administration degree 100% paid for by the United States Air Force.

To learn more about Military Tuition Assistance and how to use it, visit the Military OneSource website.

2. Think about joining the workforce before attending college! Why? Because some companies offer Tuition Reimbursement as a Benefit!

Working in an adult job before attending college, may be non-traditional but it can be a very smart and effective life move if done strategically and if you have the right mindset. Caution though, do not get so caught up in working full-time that you forget about progressing your education and investing in your future. It also actually requires decision-making to go a non-traditional route, compared to just enrolling in a school right away, starting classes immediately, and graduating with over $35,000 in student loans as over 44.7 million other Americans have done. What I am getting at is, if you have the high school grades and the ACT/SAT scores, anyone can go the traditional route.

Some of the companies that offer Tuition Reimbursement as a benefit is AT&T, Bank of America, Home Depot, Proctor & Gamble, Starbucks, UPS, Wells Fargo, and Verizon. All of their programs vary and have their own company requirements.

3. Grants

Grants are awarded based on financial need and do not need to be repaid. Who gives out grants? Colleges, states, and the federal government. The biggest grant awards normally come from the college itself.

Federal Pell Grants, normally go to families who earn less than $30,000 annually and are capped at $5,920 a year. If you meet this requirement, you can start applying today by submitting a Federal Student Aid (“commonly known as” FASFA) form which is free and you will have to fill it out annually according to the StudentAid.gov website. Eligibility for state grants vary since every state has their own laws and regulations.

4. Live off campus or enroll in community college

The average cost for room and board exceeds over $10,000, it can cost as much as tuition at some schools. You can save a lot of money, if living with your parents for a few more years and commuting to school is an option.

You can save even more money if you enroll in a community college instead initially before transferring to a four-year college, which is a lot more affordable. Tuition and fees at community colleges tend to average $3,347 nationwide according to the American Association of Community Colleges.

5.  Apply for private scholarships!

There are thousands of private scholarships available from nonprofits, community groups, and companies. You can ask your high school counselor or your child’s high school counselor to point you in the right direction or use an online service like Scholly. The founder Christopher Gray, who was featured in CNN Money, won 35 scholarships and went to college for free.

U.S. News also shared and discussed at least 11 private scholarships that will help you pay for college in one of their articles online –there is definitely no shortage of options.   

6.  Start a 529 plan!

One way of paying for college is starting a 529 plan, this is especially an attractive option for younger children or if you are expecting. It can still be worth it for high school students. Wealth advisors would call this an age-based investment strategy.

According to Edward Jones, seven out ten Americans do not even know what a 529 plan is and that it exists as a viable option to pay for college. Many Americans instead use their personal savings.

To learn more about the 529 plan, visit the U.S. Securities and Exchange Commission website.

What is your take? Join the conversation on today’s topic in the comments below.

Author Ben Luke Smith, MBA, 2/6/2020

About the Author: Ben Luke Smith, MBA

Ben Luke Smith, MBA is an award-winning Financial Analyst with 21 honors and awards. A results-driven professional with over 8 years of proven Financial Management and Analysis experience. Accomplished in determining most optimal Financial Management practices, achieving all objectives, and ensuring smooth financial operations for the Air National Guard. He is a United States Air Force Veteran, an Master of Business Administration graduate, and is currently serving in the Air National Guard.