How To Graduate College Debt Free: Going Back to School

One of the biggest worries that impact American students looking to return to school isn't even the difficulty of college courses they will be taking—it's the ever-rising cost of college.

In 1980, the average cost of a college education was just over $10,000 per year (including all associated fees, room and board, and tuition). In 2020, that average cost had increased by over 180% to over $28,000.

Due to the growing cost of college tuition, American students have turned to loans and other forms of debt to pay for their education. In 2024, the total student deb was $1.75 trillion. By comparison, the yearly GDP of Spain in 2022 was $1.4 trillion.

Knowing how to reduce the price tag of higher education can make returning to school to complete a degree or earn a new one more achievable.

How To Avoid Student Loan Debt When Going Back to College

College expenses can't be entirely avoided, but there are several ways that you can reduce the amount of money you'll need to borrow so you can graduate with little to no debt.

Attend a Community College First

Many community colleges have programs established with state universities where college credits will transfer without hassle. If you're looking to earn an associate degree, you probably won't even need to transfer.

If you're trying to earn a bachelor's degree, you can take many of your prerequisites and general education at a community college, which will often have much lower costs of tuition than a larger university. Then, when the time comes you can transfer your credits and finish your degree.

Get Employer Tuition Reimbursement

If your degree is related to your current career path, some employers offer reimbursement for college credits to full-time employees. Reviewing your company's benefits program before talking to an HR representative is a good place to start before considering going back to college.

Apply for Financial Aid

Many students quickly apply for federal student loans, but many students are eligible for financial aid. Students should begin by filling out their Free Application For Federal Student Aid forms (FAFSA). Once these forms have been submitted, students will have a better idea of what financial aid they qualify for based on financial need. Low-income students often have a variety of opportunities that they might not know about.

Use Military Aid

If you have past military service, there are financial aid opportunities that can pay for varying amounts of your college, in some cases up to 100%. In addition to Military Tuition Assistance programs, the GI Bill contains programs that can help former service members graduate debt-free.

Apply for Scholarships & Grants

Unlike loans, which need to be paid back, scholarships and grants, like the Pell Grant, don't need to be repaid. Although many people associate scholarships with high school graduates, multiple programs offer scholarships to older students going back to college.

Use Life Experience & Work Credits

If you've been working full-time or even a part-time job, you might have earned life and work experience that can be applied to certain degrees. Some schools offer programs where hands-on experience can replace credit hours. This program will mostly benefit students who are looking to earn a degree to advance their current career.

Participate in a Work-Study Program

Work-study programs are jobs offered either on-campus or elsewhere that allow a student to work off their debts. Sometimes these jobs are assigned through a school or nonprofit, but other schools require students to find opportunities for themselves.

Choose an Online College

Many of the costs of college aren't tuition. Things like room and board, on-campus fees, and more increase the amount of money associated with higher education. Many of these additional fees can be negated by choosing fully online degree programs, either through an online college or a traditional college.

Attend a Low-Cost College

Tuition costs vary from school to school, and can even vary from student to student. Choosing an in-state school will reduce tuition costs for on-campus learning (and some online programs). There are other factors to consider that affect tuition rates other than being out-of-state though. Living off-campus is often cheaper, so finding a school without an on-campus living requirement can reduce your expenses. You also might benefit from choosing a public college or nonprofit school over a private college, especially for-profit private schools.

Test Out of Courses

Some prerequisite and introductory level courses can be tested out of with advanced placement scores or the College-Level Examination Program (CLEP). Depending on how long it's been since you took your AP tests, the scores might no longer be valid. Taking the CLEP can be done at any point, even if it's been several years since you graduated high school.

Use Your 529 Plan

A 529 plan is a college savings plan that allows students or their families to contribute over time to pre-pay for tuition. With 529 plans, people open a savings account that builds much like an IRA or retirement fund. Unlike those funds, though, there is usually a much quicker withdrawal timeline.

FAQs About Going Back to School Debt-Free

The costs of higher education can raise many questions, especially for people trying to graduate debt-free.

Is It Possible To Graduate College Debt Free?

Yes, it is possible to graduate college without having to worry about debt or loan repayment. Taking a few factors into account like in-state vs out-of-state tuition rates, testing out of some credits, and using life experience as a substitute for credits are all ways students reduce their college costs and eliminate the amount of loans they need to take.

What Is the Average Graduate Student Loan Debt?

The average debt owed to a college graduate is $28,950. Because this is an average, that means some students luckily owe less than this, but others owe much more.

How Hard Is It To Leave College Debt-Free?

It is hard to leave college debt-free, but not impossible. There are many strategies that students can take to reduce their costs. Even without loans, other factors can lead to debt, such as increased credit card use for school supplies. Setting budgets and avoiding loans when possible will make graduating debt-free much easier.

Is Going into Debt Worth It for a College Degree?

It is rarely worth going into high amounts of debt for a college degree. To evaluate if your degree is worth taking on some debt for, look at hiring rates for your profession as well as average starting pay. If you can't pay off your loans quickly with your salary, or the degree has a low hiring rate, then the degree will rarely ever be worth going into debt for.

Can I Get a Student Loan Without Filing a FAFSA?

Although many student loans require you to fill out FAFSA, there are options for people who haven't filled out their forms. Nearly all federal student loans will require FAFSA to be filed for application, while private loans might not have the same requirements.