How to Pay for College: 10 Ways to Get By

Covering college expenses is a big challenge. For the 2024-2025 school year, the average annual tuition for four-year public colleges is $11,610 for in-state students and $30,780 for out-of-state students, based on CollegeBoard data. If you’re wondering how to pay for college, there are more options than you probably expect.

When it comes to paying for college, some types of financial aid are definitely more helpful than others. Start by focusing on the money you don’t have to repay—like scholarships, grants, and fellowships. After that, look into work-study opportunities or even employer assistance if you plan to work while taking classes.

In this blog, we discuss in detail 10 ways to pay for college, and each of these options can be a good fit for you and your financial situation.

• 10 Alternative Ways to Pay for College
• More Ways to Cut Expenses in College
• Frequently Asked Questions
• Takeaways

10 Alternative Ways To Pay For College

Figuring out how to pay for college can feel overwhelming, especially with all the acronyms like FAFSA, SAI, and SAR. It’s easy for parents to worry they might overlook something crucial that could impact their child’s future.

There are lots of ways to lower the overall cost of college, and you’ll probably want to use more than one during the typical four years it takes to graduate. Here are the ten best options to consider for paying for college that could work for you and your family:

1. Federal financial aid through FAFSA

If you’re looking into how to pay for college, most U.S. citizens and permanent residents can qualify for unsubsidized federal student loans and parent loans by filling out the FAFSA, as long as they’re enrolled at least half-time.

For students with financial need, there’s also the option of subsidized federal student loans, where the government covers the interest while you’re in school and during the 6-month grace period after graduation or dropping below half-time enrollment.

It’s best to start with federal student loans since they typically come with lower costs and better repayment options than private loans or parent loans. If you’re considering a Federal Parent PLUS loan or private student loan, it might mean you’re borrowing more than you can realistically pay back. A good rule of thumb: if your total student debt at graduation is less than your starting annual salary, you should be able to pay off your loans within 10 years.

Filing your application early can unlock a range of financial aid options, like scholarships, grants, and loans. Most college admissions experts recommend submitting as soon as applications open.

2. 529 college savings plans

If you’re figuring out how to pay for college, a 529 plan is a great way to start saving. A 529 plan is a special savings account that gives you tax and financial aid benefits, allowing you to cover college tuition and other education-related costs. Here are two of its biggest perks compared to regular savings accounts:

• Tax benefits. Over two-thirds of states offer a state income tax deduction or credit for contributions to their 529 plans. Your savings grow tax-deferred, and if you use them for qualified education expenses, they’re completely tax-free.

• Financial aid benefits. When a 529 plan is in the student’s or parent’s name, it’s considered a parent asset on the FAFSA, which minimizes need-based aid eligibility. Plus, distributions aren’t counted.

Another great advantage is that extended family can pitch in! Grandparents or other family members can contribute directly to your 529 plan or set up their own.

The best 529 plans also reduce the need for student loans and offer flexibility in college choice. You won’t have to borrow every dollar you save, and if your state offers a tax deduction or credit for 529 contributions, you’ll save on taxes each year, giving you a little extra to boost your college savings.

3. No-loan schools

Certain schools, like Amherst College in Massachusetts and Stanford in California, have programs designed to cover each student’s full demonstrated financial need without adding loans to the mix. This means their financial aid packages are made up entirely of scholarships, grants, and work-study opportunities, which don’t require repayment.

These loan-free aid packages are often aimed at students from low- to moderate-income families, making it easier for those who qualify to pursue their education without a heavy financial burden.

If you’re exploring how to pay for college, these programs are a great option to consider. Schools with loan-free financial aid packages can make a huge difference in your college journey by reducing the stress of future debt.

While these programs are more common at highly selective institutions, they’re not limited to just a few elite colleges. Many other schools are moving towards offering similar aid options, especially as the demand for affordable higher education grows.

4. Scholarships

If you’re wondering how to pay for college, don’t wait until senior year to start applying for scholarships—getting a head start can make a big difference. For example, the Coca-Cola Scholars Program grants $20,000 scholarships each year to 150 high school seniors who demonstrate exceptional leadership, strong academic performance, and a commitment to community service.

Scholarships are a great way to pay for college since they don’t need to be repaid like student loans. With thousands available, you can start your search using tools like the Department of Labor’s Scholarships Finder. Many scholarships require a FAFSA submission, along with a separate application.

Colleges often offer their own scholarships but don’t overlook local awards from nonprofits, community organizations, and religious groups. These local scholarships may be smaller, but they’re often less competitive, giving you a better chance of winning.

It’s also worth exploring scholarships offered by your parents’ employers, as many companies provide awards for employees’ children. Starting your scholarship search early helps you take advantage of various options—national, institutional, local, and employer-based. By stacking these resources, you can significantly reduce the need for student loans and build a solid financial plan for college.

5. Advanced placement and dual-enrollment credits

If you’re looking into how to pay for college, scoring high on AP exams can be a big money saver. Many colleges will give you course credits based on your AP scores, which can cut down on tuition costs. However, a few schools, like Brown University, don’t give credit for AP scores but instead allow students to place into higher-level courses if they qualify.

Another great option for earning college credits in high school is dual enrollment, often called early college. These programs let you take college-level courses, often for free or at a reduced rate, through participating schools like local community colleges. Dual enrollment courses are separate from your regular high school curriculum and can count as both high school and college credits, giving you a head start on college requirements while saving money.

6. Exchange programs through regional tuition

When thinking about how to pay for college, it’s good to know that public schools are usually more affordable than private colleges, but costs can vary widely depending on whether you’re an in-state or out-of-state student.

However, regional tuition exchange programs can help out-of-state students get a break on tuition costs. Each state participates in a regional program, like the Western Undergraduate Exchange, the Midwest Student Exchange Program, the New England Regional Student Program, and the Academic Common Market in the South.

Through the Western Undergraduate Exchange, for example, students in eligible programs pay no more than 150% of in-state tuition at participating colleges, making college more affordable even as an out-of-state student. This rate is significantly lower than standard out-of-state tuition, which can exceed 300% of resident rates.

7. Work-study jobs

A college job can help you figure out how to pay for college while giving you income, work experience, and possibly some valuable connections. One great option is the federal work-study program, which provides part-time jobs for students with financial need. To qualify, start by submitting the FAFSA.

If you’re eligible, “work-study” will show up on your financial aid award. However, just being eligible doesn’t mean you automatically receive funds—you’ll need to find an approved work-study job on campus and work enough hours to earn the full amount.

Once you’re hired, you’ll get paid by the school at least once a month, with the option to receive payments directly, have them deposited into your bank account, or send them to your school to cover education costs. Keep in mind that you’ll need to actively search and apply for work-study positions, as jobs aren’t guaranteed.

If you aren’t awarded work-study initially, consider checking back with the financial aid office during the semester; sometimes, other students decline their awards, opening up new opportunities. This program can be a valuable resource in your journey to figure out how to pay for college.

8. An employer that pays for college

If you’re looking into how to pay for college, employer tuition assistance can be a huge help. Nearly half of employers offer some form of tuition support, according to a 2022 survey by the Society for Human Resource Management. Many companies cover part of your tuition, a set amount, or sometimes even the full cost. For instance, Target employees can choose from over 250 business-related programs at more than 40 schools and universities.

These programs usually come in two forms: tuition reimbursement, where you pay upfront and get reimbursed later, or direct payments to the school by your employer. Some companies also offer student loan repayment benefits to help you tackle existing debt.

When you’re job hunting, check out what educational benefits potential employers offer, and if you’re already working, talk to your HR department to see what options are available for you.

9. ROTC programs

If you’re looking into how to pay for college, the Reserve Officers’ Training Corps (ROTC) is a fantastic option to consider. ROTC scholarships can cover either your tuition, fees, and books or your room and board—making a huge dent in your college expenses. These scholarships aren’t just limited to high school students; current college students can apply too.

However, an ROTC scholarship comes with a commitment: after graduation, you’ll serve in the U.S. military for at least eight years, which may include active duty or reserve time. It’s a big commitment but one that not only pays for school but also sets you up with valuable training, leadership experience, and a guaranteed job after college.

ROTC programs are available across various branches—Army, Navy, Air Force, and Marine Corps—so you can explore different military paths to see which aligns best with your career goals.

10. Private loans

If you’re exploring how to pay for college and have exhausted other options, private loans might be worth considering as a last resort. Before taking this step, it’s crucial to understand the full cost of repaying these loans and think about whether your major and future career will provide the income needed to manage those payments comfortably.

One thing to keep in mind with private loans is that interest begins building up right away—there’s no deferment like with some federal loans. This means your balance can grow faster than you might expect while you’re still in school.

It’s a good idea to compare lenders, interest rates, and repayment terms to ensure you’re making the best possible choice if you go this route. Be sure to have a clear plan in place for how you’ll handle repayment after graduation so you’re not caught off guard.

More Ways to Cut Expenses in College

Figuring out how to pay for college goes beyond tuition. About half of college expenses come from things like room and board, books, transportation, and other personal costs. Each of these areas offers ways to cut down on spending and ease the financial load.

• Stay with family or share housing. If your college is close to home, consider living with your parents to save on room and board. If that’s not an option, living off-campus with roommates can help you split rent and reduce costs.
• Keep up good grades. Strong grades and test scores can open doors to academic scholarships. Some private scholarships also look at academic performance, and maintaining good grades is often necessary to keep your scholarships year after year. This is a smart way to lighten the load as you look at how to pay for college.
• Find affordable textbooks. Textbooks can add up fast, but you can save by buying used books or renting them. Some libraries even carry the books you need, or you might be able to share them with friends. Only buy what’s required, and look for end-of-semester buyback options to save up to half on book expenses.
• Limit trips home and car expenses. Cutting back on visits home can save on travel costs, and leaving your car behind helps avoid parking fees. Stick to public transit or ride-sharing on campus, but if you do have a car, you could drive for Uber or Lyft to make extra money. By combining these strategies, you can make a real difference in how to pay for college and keep more money in your pocket.

Frequently Asked Questions

1. Is it possible to pay for college with cash?

Yes, it’s possible to pay for college with cash if you have enough savings or income to cover tuition and expenses without taking loans. Many students work, save, or receive help from family to make this option viable.

2. How does paying for college work?

Paying for college typically involves a mix of financial aid, savings, and income. Students can apply for scholarships, grants, work-study, and federal loans through the FAFSA. Some also use private loans, family contributions, or personal savings to cover costs.

3. Why do you have to pay for college?

You have to pay for college because tuition and fees cover the cost of faculty, facilities, resources, and services that colleges provide to students. These funds help institutions maintain quality education, infrastructure, and support systems essential for academic success.

Takeaways

There are a couple of ways to pay for college expenses, and with some planning, college can become more affordable and accessible.

• Submitting the FAFSA as soon as it opens is one of the best ways to boost your chances of receiving more financial aid when figuring out how to pay for college.
• A 529 college savings plan is a smart way to save for college due to its tax benefits. Contributions grow tax-deferred, withdrawals for qualified education expenses are tax-free, and they minimally impact need-based financial aid eligibility.
• Some colleges offer full financial aid packages without loans, especially for low- and moderate-income students.
• By earning college credits in high school through AP exams or dual enrollment programs, students can reduce the number of courses needed in college, leading to substantial tuition savings.
• Learn more about other options to pay for college by partnering with a college admission expert.