Paying For College With No Money – Forbes Advisor – Technologist

Prices on everything from housing to food are more expensive, and wages haven’t kept pace. Those two issues combined make it very difficult for families to save for higher education. A 2022 study released by Discover Student Loans found that half of parents had $15,000 or less saved for college—significantly less than they’d need to pay for a four-year degree.

If you’re wondering how to pay for college with no money, don’t be discouraged; there are scholarships, grants, work-study programs and other forms of financial aid that can help cover the cost.

How Much Is the Average College Tuition?

When researching how to pay for college with no savings, you need to first learn about your school options. College expenses can vary significantly across each type. According to the College Board’s Trends in College Pricing and Student Aid report, these are the average costs of different programs:

As you can see, tuition makes up only a small part of your total attendance costs. Other education expenses include room and board, textbooks, transportation and supplies.

In general, public schools are significantly cheaper than private schools. The average cost of attending a public four-year school for an in-state student is less than half the average cost of attendance at a private school.

7 Best Ways To Pay for College With No Money

If you don’t have money stashed in a 529 education savings plan, Coverdell education savings account or other savings tool to pay for college, you can use a combination of the following options to finance your degree:

1. Apply for Scholarships and Grants

Gift aid, such as scholarships and grants, don’t have to be repaid, so they’re an especially valuable tool for financing your education. According to Sallie Mae’s How America Pays for College report, gift aid covers approximately 29% of families’ college costs.

Grants and scholarships are available from a variety of sources:

Federal Programs

The federal government operates several need-based grant programs for undergraduate students that are awarded based on the information you submit in your Free Application for Federal Student Aid (FAFSA). For example:

• Pell Grants. Pell Grants are issued to students with significant financial need. For the 2023-2024 academic year, the maximum award is $7,395.
• Teacher Education Assistance for College and Higher Education (TEACH) grants. For students pursuing degrees in education, the TEACH Grant provides up to $3,772 per year in grants. In exchange, students must commit to teaching full-time for at least four years in a high-need field in a school or education service agency serving low-income students. Otherwise, the grant is converted to a loan.

State Programs

Depending on where you live, you may be eligible for grant programs operated by the state. These programs can provide significant amounts of aid. For example:

• Florida Bright Futures. The Florida Bright Futures program is a lottery-based scholarship that covers up to 100% of tuition and fees at public postsecondary schools (and a comparable amount if the student attends an eligible private college).
• North Dakota Student Financial Assistance Program. In North Dakota, first-time undergraduate students attending an eligible school within the state can receive up to $1,375 per semester in grants through the Student Financial Assistance Program.
• Washington College Grant. Through the Washington College Grant, residents of Washington state may be able to attend college for free. The grant is issued based on the student’s household income.

Visit your state education agency to find out what grants or financial aid programs are available to residents.

Institutional Programs

Most colleges and universities operate and award their own grants or scholarships. Awards range from modest programs that cover the cost of books or supplies to more substantial awards that pay the full cost of attendance. For example:

• Baylor University. At Baylor University, first-generation college students may be eligible for the First in Line Success Academy. This award provides up to $3,000 per year in scholarship aid and students also receive academic coaching.
• University of Maryland. Through the school’s President’s Scholarship, undergraduate students attending the University of Maryland can receive $2,000 to $15,000 per year. The scholarship is awarded based on the student’s academics, extracurricular activities and essays.
• The College of William & Mary. William & Mary’s 1693 Scholars Program is its most selective award; it’s equal to the cost of in-state tuition, fees and room and board.

Private Companies and Nonprofit Organizations

Many nonprofit organizations and private companies operate gift aid programs. Eligibility requirements and application processes vary by program. For example:

• Gates Scholarship. The Gates Scholarship is a last-dollar award that covers your remaining costs after deducting other gift aid. To qualify, you must have strong academics, be eligible for a Pell Grant and belong to one of the following groups: African American, Native American, Alaskan Native, Asian American Pacific Islander or Latino.
• Jack Kent Cooke Foundation. The Jack Kent Cooke Foundation scholarship is for high-achieving high school seniors and is awarded based on grades and community service efforts. The funds cover tuition, living expenses, fees and textbooks, up to $55,000 annually.
• National Institutes of Health (NIH) Undergraduate Scholarship Program. Undergraduate students pursuing biomedical, behavioral or social science research degrees can qualify for up to $20,000 through the NIH scholarship program.

You can search for scholarships and grants using The College Board’s BigFuture gift aid database.

2. Use GI Bill Benefits

If you served in the military, you may be eligible for Post 9/11 GI Bill benefits. Depending on your service, the GI Bill may cover up to 100% of tuition and fees at public colleges or universities. If you opt for a private school, it may cover up to $27,120.05.

3. Request Tuition Reimbursement

If you are currently working, you may be eligible for tuition reimbursement from your employer. According to the Society for Human Resource Management, 48% of employers offer tuition reimbursement.

If you qualify, your employer will pay for a portion of your expenses upfront or reimburse you after completing your courses. Some employers offer tuition reimbursement benefits to part- and full-time employees, so contact your employer to find out if you’re eligible.

4. Pursue Work-Study Programs

Some colleges and universities participate in the federal work-study program. If your school participates, you can qualify for a work-study position based on your FAFSA submission. Eligible students can work part-time in roles—either on-campus or off—and use their earnings to offset expenses.

Sallie Mae reported that 20% of families took advantage of federal work-study programs, and the average amount of program earnings was $1,821 for the 2023-2024 academic year.

5. Work While in School

If your school doesn’t participate in the federal work-study program or you want more flexibility and control over your schedule, you can get a job on your own. Working part-time or establishing a side hustle can help you earn money to pay for your college expenses upfront.

College students can find potential jobs through Handshake and QuadJobs.

6. Ask About Tuition Payment Plans

Sometimes, spreading out the cost of a semester over several months—rather than needing to pay the full amount upfront before the first day of class—can make it easier to afford. Many colleges offer payment plans, allowing you to pay your tuition and fees in installments. These plans are usually interest-free, but there may be a small enrollment fee.

7. Use Student Loans for Remaining Expenses

After applying for other forms of aid and working part-time, you may need additional funds to cover the remaining balance. If that’s the case, student loans can cover your bill as you continue your education. As an undergraduate student, there are two main loan types: federal and private.

Federal Student Loans

Federal student loans are the best starting point since they tend to have lower rates and more borrower protections than other loans. And unlike private loans, federal undergraduate loans don’t have minimum credit or income requirements. Undergraduate students may qualify for one or more of the following federal loans:

Private Student Loans

Private student loans tend to be more expensive than federal loans, but they can come in handy if you reach the annual or aggregate borrowing maximum for federal loans. With private loans, you can typically borrow up to 100% of the school-certified cost of attendance.

How Can You Cut Costs To Afford College?

Now that you know how to pay for college with no money saved, here are some ways to lower your education costs and reduce the need for student loans:

• Choose community college. Community colleges are a fraction of the cost of four-year schools. If your goal is to earn a bachelor’s degree, you can complete two years of community college and then transfer to a four-year school to finish your degree.
• Attend public school. As mentioned earlier, public in-state schools are much less expensive than other colleges. But if you have your heart set on attending college in another state, research state reciprocity agreements; many states enter into agreements that allow students to attend college in a partnering state and pay the in-state tuition rate, allowing you to save thousands.
• Rent textbooks. Textbooks can cost thousands each year. But you can save money by renting your books instead of buying them. Popular rental sites include Chegg and CampusBooks.
• Commute to school. If possible, attending school locally and living with family can be an excellent way to save money. Even if you pay your loved ones rent, your cost will likely be lower than the price of room and board at a college.