How To Pay For a College Degree: 10 Tips

These tips can help you navigate the different types of financial aid that are available and find the most effective way to pay for your college degree.

Students can use many forms of financial aid to pay for a college degree. Some choose to take out loans or participate in work studies, while others look to grants and scholarships to cover tuition costs.

Access to these resources will be based on factors like financial need, academic achievement, and personal affiliations. Various financial aid options can help make college degrees more accessible by decreasing tuition costs and minimizing debt.

These top tips outline the different ways to lower college costs and pay for degrees to make your expenses more manageable.

Top 10 Tips for Paying For a College Degree

Even though earning a college degree provides many benefits, they are often expensive. Determining how to pay for it can be confusing and overwhelming. Exploring the available options can help you make more informed financial decisions when planning for college costs.

1. Apply for Financial Aid

The U.S. Department of Education provides college financial aid programs. The Free Application for Federal Student Aid, or FAFSA, determines the types and amount of federal financial aid college students are eligible for based on financial need.

Even if you don't plan on taking out federal student loans to pay for your degree, it's still a good idea to fill out the FAFSA. It outlines the total amount and types of aid you are eligible for, including options like grants, scholarships, and work-study programs.

2. Explore Grants & Scholarship Opportunities

Grants and scholarships can make earning a degree more affordable because, unlike loans, they don't need to be repaid. They're offered through universities, federal and state governments, and various organizations (e.g., nonprofits).

Application timelines can vary, so it's best to plan ahead. Some scholarships have application deadlines that can be a year in advance, so many students start their scholarship search while still in high school.

They can be awarded based on achievements, like merit-based grants. Others are need-based, such as the Federal Pell Grant. Researching your options and applying for grants and scholarships can significantly lower your college costs.

3. Consider a Work-Study Program

Work-study programs provide part-time jobs, typically on campus, to help them pay for their degrees. Students who take this route can earn money for education-related expenses while attending school.

Federal work-study programs are included as part of your financial aid package. They are offered based on financial need and school funding.

4. Use Employer Tuition Reimbursement

Many employers offer tuition assistance programs for employees who are pursuing higher education. Employer tuition reimbursement can cover some or all of your college tuition, depending on the program.

5. Compare Student Loans

Student loans vary when it comes to terms and repayment options, so researching and comparing lenders can help you choose the best one. Private student loans are based on credit scores. They include a range of interest rates and may enforce strict repayment terms. First-year college students often require a cosigner.

Federal loans are generally a better option as they usually offer lower interest rates and more flexible repayment plans. With subsidized loans, you don't need to pay interest as long as you are enrolled in classes at least half-time. There is also a six-month deferment period to begin repaying the amount.

6. Find a No-Loan School

Attending a no-loan school can minimize college debt and help you avoid having loan payments in the future. They award financial aid packages that are comprised of resources like grants, scholarships, and work-studies.

No-loan colleges are often in-state public colleges and can be a great way to earn a degree without worrying about loan repayment. Financial resources are typically offered to students on a first-come, first-served basis and usually require them to have at least half-time enrollment.

7. Use Military Service Benefits

If you or a family member has served or is currently serving in the military, additional resources are available to help you pay for your degree. Military education discounts and programs can lower or completely cover the cost of college.

The GI Bill, a federal government program, helps students financially during their degree program. It can cover tuition costs and assist with additional expenses like off-campus housing and education fees.

8. Find a Summer Job or Internship

Another way to pay for your college education is by earning money during your time off. Many students work part-time or full-time during their break from classes.

Working a summer job or doing a paid internship can also help you cover college costs and provide you with valuable experience. They also have the additional benefit of preparing you for the workforce once you graduate with a bachelor's degree.

9. Take Advantage of a 529 College Savings Plan

529 plans provide an opportunity to save money for future education expenses. Students can pay for college expenses with a 529 plan, and they won't be taxed when they add or withdraw funds for these qualifying expenses. By taking advantage of a 529 college savings plan, you can better prepare yourself to pay for your degree.

10. Work Part-Time During School

Many students hold part-time jobs while attending school. This is separate from work-study programs because they are not offered federally. Covering college expenses out-of-pocket can decrease your need for financial aid programs. Working and paying your tuition can help you avoid taking out loans.

Tips on Applying for Financial Aid

Applying for financial aid can be confusing due to the various types of aid, eligibility requirements, and application deadlines. Minimizing tuition amounts, contacting financial aid offices, and remaining organized can help you while you go through the application process.

Stay Organized

Staying organized and planning can help you keep track of everything so that you can fully consider your options. Before applying for aid, you should list your expenses and determine the net price of your chosen college.

When you receive your financial aid package, it outlines the loans, grants, and scholarships that you are eligible for. From there, you can choose the best way to pay for your degree, whether it's taking out loans, utilizing grants and scholarships, or combining multiple forms of aid.

Minimize Costs

You can minimize the financial aid needed to complete your degree by attending an in-state, public college. Private colleges and out-of-state schools have higher tuition costs. You can also complete courses at a community college and transfer college credits. Once accepted into a college or university, you should start the financial aid application process by filling out the FAFSA.

Seek Out Advice

Prioritizing financial resources that don't need to be paid back can help you avoid taking out additional student loans so that you don't accumulate extra debt. Your school's financial aid office can help ensure you're utilizing the available resources.

Find Out How To Pay For Your Degree Program Today

Learn how to pay for and finance the degree programs you are interested in below.