Are the rising costs of college tuition concerning you and your teens? Do you think piles of college debt are inevitable? Keep reading for a bunch of clever ways you might be able to shave thousands off your tuition bills!
Whenever I talk about Jesse going to law school debt-free, I find that people can’t fathom how this could be possible.
There’s a real belief out there that most college graduates will end up with lots of student loans — that this debt is “unavoidable.”
I wholeheartedly disagree!
10+ Ideas for Saving on College Tuition
With effort, research, and a can-do attitude, I’m confident you or your student can get a college degree with little to no debt at all.
Don’t believe me?
Here are just a few ideas to get you thinking (check the comments for a lot more suggestions and tips!)…
1. Attend an in-state school.
In most U.S. states, it is significantly less expensive to attend an in-state school versus an out-of-state school or private school.
There are also a variety of “state scholarships” you can qualify for if you attend a state school in your own state (with a certain GPA + SAT/ACT scores).
Tennessee has both TN Promise and TH Hope scholarships for these students — adding up to a few thousand dollars per semester! Other states have similar programs: Florida has Bright Futures, Georgia has the Hope Scholarship, etc.
2. Choose a less expensive college for gen ed credits.
Community colleges are a great way to get lots of general education credits out of the way before transferring to a 4-year college or university, and their cost per credit is much less expensive!
Just do your research to make sure the credits will transfer.
3. Live off campus.
While you might miss out on some of the campus life activities, you’ll also “miss out” on a huge amount of debt!
Dorms are often very pricey, and our girls are each saving $10,000 – $12,000 per year by living off campus!!
4. Live on campus.
Yes, there are two sides to every coin! ☺️
If you can find a scholarship that applies to room and board, there are lots of ways to save by living on campus.
For example, you don’t need to drive to and from the school each day, saving gas (and time). And — if your scholarship could be applied toward the meal plan — that would save you money on food as you wouldn’t need to buy many groceries.
5. Apply for every scholarship you can find.
There are SO many scholarships available these days — you just need to hunt for them.
One follower mentioned her daughter applied for several $500 scholarships. She got them since she was the only one who applied — and they all added up to big savings!
Yes, it takes some work, but it could pay off big-time (literally!).
6. Look for specific scholarships from your school.
Once you decide what school you will attend, find all the scholarships available and start applying.
You can often “stack” various scholarships (just like coupons!) for an even deeper discount.
Some followers mentioned that their kids got more scholarships than the cost of tuition and were able to use the overages to pay for room and board, meal plans, and even books!
7. Take AP or Dual Enrollment classes in high school.
Many high schools offer Advanced Placement (A.P.) and Dual Enrollment classes that count for college credit while the students are still in high school.
It’s not uncommon for high school seniors to graduate with 20 or more college credits that will then transfer to their college and provide an opportunity to graduate a semester or more early (saving TONS on tuition).
8. Know what your income qualifies for.
You might be surprised by what is considered “low income”, especially if you have multiple kids around college age at the same time. Be sure to fill out your FAFSA form, even if you don’t think you’ll qualify for financial aid.
Do a little research to figure out if you qualify for state funding or grants that could be applied to college tuition. These do not need to be paid back and are essentially the same as a scholarship.
9. Encourage teens to start saving.
Help your teens find part-time jobs during the school year (and especially during summer months) to save up money for college tuition.
It’s not unreasonable to challenge your high school and college students to save $5,000 – $10,000 per year to put towards tuition.
In most cases, they can still work part-time while keeping up with their school work and participating in extracurricular activities.
10. Find a job with tuition reimbursement.
And speaking of teens finding part-time work, more and more companies are reimbursing college students for each credit they get while working for the company.
This is a great option for people working in a specific field who go back to get a Master’s or Doctorate, but there are also many entry-level jobs that will pay for a bachelor’s or associate’s degree.
Places like Chipotle, Walmart, Costco, Starbucks, Papa John’s, and Amazon offer reimbursement programs for full- and part-time employees.
11. Become an R.A. (Resident Assistant).
Most colleges and universities offer free (or very reduced) room and board to students who would like to serve as an R.A. for their dorm floor.
This could shave off a huge portion of their overall tuition bill, teach valuable leadership skills, and provide ample opportunities for getting involved with campus life and other fun activities around campus.
12. Work for the college.
Many colleges offer on-campus jobs for students — both during the year and over the summer.
One follower said that her child went to College of the Ozarks and got FREE tuition for working 15 hours per week (plus two 40-hour weeks) during the year!! They also have the option to work during the summer to pay for room and board.
Another follower mentioned that her husband got his Master’s degree completely free by first getting a job at the university he wanted to attend. The university offered free tuition that covered everything but books!
What else would you add to this list?
As you can see, there are so many ways to significantly reduce the rising cost of college tuition — you just have to get creative and be willing to do the research/work.
Remind yourself how thankful your “future self” will be without the burden of deep college debt. That should be motivation enough to keep pushing forward when you’re tired of all those scholarship applications!
We’d love to continue this conversation in the comments…
Nicole says
I have recently been reflecting on my own university experience in Canada, where I graduated from 5 years of school with around 30K in debt back in 2009. I realize this may seem pretty low in relation to what is often seen in the US. But it felt like a big burden and I couldn’t wait to pay it off!
I have gone on to work as an HR Professional in various industries and have realized how a) how many job options there truly are (you are rarely locked into anything) and b) how little the school you went to matters in the end.
I think the ideal is if a student can gain some valuable work experience while going to school, or do a program with a relevant paid co-op or internship that would is a win-win for debt prevention. Also looking at online/hybrid options could also be a great way to manage school costs!
I am thinking of some of these things now in light of my own kids looking at schools one day. 🙂
Nia says
As someone who happens to Process enrollment for the Dept of Ed, I would highly recommend that you become familiar with the student loans interest rate, subsidy, type of loan you’re agreeing to. The reason student loans do lock you in for what may seem like an eternity of debt is due to Interest Capping and essentially ballooning your loan. For example, Deferments and forbearances are meant to postpone payments, and that’s great because that means your child or you do not have to pay while they are enrolled BUT that’s where they get you. Yes, it’s all intentional and often times very very difficult to get out of.
If you happened to be a veteren or an individual who is disabled, consider parent plus loans and try to get all the loans disbursed at once. If your child is planning on attending the same college for any duration of time, attempt to get the heftiest loans as Parent plus loans. The Dept of Education has a program specifically tailored to discharging loans. You undergo a monitoring period of 3 yrs, meaning new loans can not be requested under the disabled persons name during this time however you or the child can still attend.
Pay as you go, in other words – opt out of deferment’s or forbearances. Be specific when you request this as deferments and forbearances are added regularly to “process” things on the backend. Make your payments and continue without any requested benefits as these all are “changes” that later require a redisclosure so your loans are calculated to be paid within your term.
Encourage your student to go into public service, if this is a possibility – work for non profit or government entities so the payments made qualify for Public service loan forgiveness. Anyone working for the Government, Title 1 school, or 501c Non profit may qualify.
Crystal Paine says
My encouragement: just avoid loans all together by using the suggestions in this post and in the comments here. It makes things SO much simpler!
Blaire Ruch says
I just discovered the American Opportunity Tax Credit. Our oldest child will be a freshman in college this fall.
We have been saving money in a 529 account for her for awhile, and we try to save the max for our state tax deduction each year, buy don’t always hit it. If we use $2,000 of cash towards her tuition, rather than $2,000 from the 529, we are eligible to get a 100% Federal tax credit for that. This is especially appealing because our second-born will be turning 17 this year, and we won’t be able to get the $2,000 Federal child tax credit for him anymore. We can continue to let the 529 existing money grow, as a result.
We qualified through the FAFSA for a Federal direct subsidized loan of $3,500, which does not start accruing interest of have to be paid back until 6 months after she graduates. I thought we would decline the loans, because I avoid debt at all costs, and we do have the funds to pay for her first year.
However, my financial advisor pointed out that the loan is free money. It would go to the school and reduce our out of pocket expenses, and our 529 money can continue to grow for the next four years. Even better is that we can use the 529 money to pay that $3,500 loan off in full right after she graduates. You can pay up to $10,000 of loans for a lifetime per student with 529 money.
So there are a few little tricks one can do to maximize incentives the government gives for making your education dollars go farther.
Susan says
It’s actually $4,000 cash toward tuition to get $2,500 back in taxes. There are income limits. Also I’ve been told the loans count toward the $4,000 too – but you should confirm that.
Blaire Ruch says
I didn’t share all the details or ins and outs, but I have researched them. We are under the income limits. I did not mention the $4,000 because it’s only 100% for the first $2,000, and then it is 25% of the next $2,000 to get the last $500, and we’re not doing that because I don’t think that is worth it, and because of our particular tax situation, and the fact that after the credit takes you to $0 tax owed, only 40% of the remaining $1,000 is refundable. Student loans do work with it as well, but then the credit goes to the student, and since she is our dependent, she would not be eligible.
Crystal Paine says
Thank you for sharing! I disagree with your financial advisor that the loan is “free money” just because I know so many who are still strapped with SO much debt years after graduating even trying to maximize programs, etc. because unexpected things came up and they weren’t able to pay it back at all in the timeframe they thought they could. If you haven’t done so already, definitely look into all the scholarship options out there and apply for as many as you possibly can, because there are thousands and thousands of dollars in scholarship money if you’re willing to put in the effort! (We tell our girls to view it like a job, because applying for scholarships will likely net them thousands of dollars in money for the work and time invested — likely much more than they’d make per hour at a job, though we also encourage them to have jobs, too!)
Blaire Ruch says
Glad you mentioned that, because I could have been clearer. This won’t be a good idea for some.
Erring on the side of caution is always wise, and loans are something to research and fully understand before accepting. There are some people in my situation for which this strategy makes sense though. Since my financial advisor knows our entire financial picture, it is a tax/investment strategy that actually does not have risk for us. The reality is that while many students will work hard to try and get scholarships, some may be able to get a lot, but some will not be chosen as recipients. Most students are unfortunately not able to cover their entire cost of attendance for a year (or four years) through scholarships. Definitely try! But if there are remaining costs, they have to be paid somehow. My daughter was fortunate to get grants and a scholarship so far, and she is waiting to hear back from the 60+ scholarships she applied for. Extreme example (not my life): If you have $500,000 in cash savings and no debt. And you have $160,000 in a 529, you do not need a $3,500 federal direct subsidized loan.
But if you take it, and don’t use $3,500 from your 529, that money can grow by sitting there for 4 more years. Since the loan has no interest, and you have the ability to literally pay it back at any moment, it is a way to earn money. Instead of paying a $3,500 bill now, you are essentially paying yourself by allowing yourself to invest/keep investing that $3,500 tax free!
Blaire Ruch says
Another thing to consider is that there are expenses students have in college that 529 plans will not cover. If you have saved a lot in your 529 plan, you can take out an interest-free federal direct subsidized loan of $3,500 to pay for some of these expenses, and then use the 529 to pay the student loan later.
There are many articles that explain the benefits better than I can, and again, it is only for those who find themselves in a situation to take advantage of this, and not everyone is there.
Here is one such article:
https://www.bankrate.com/investing/how-to-use-your-529-plan-to-pay-off-student-loans/
“If you can access subsidized student loans – loans that don’t accrue interest until after you’ve graduated – then it can make sense to take subsidized loans and then let your 529 plan grow over time during college,” says Joyce.
Then when you graduate, you can pay off the loan with your potentially greater 529 balance. In effect, you’re getting an interest-free loan to grow your 529 investments for four or five years, or potentially longer if you move directly to graduate school after earning a bachelor’s degree.
This approach can also help if you’re dealing with the restrictions on 529 plans, which do not allow you to pay for some relevant costs of attending school such as transportation.
“Incidental costs are not covered by 529 plans,” says Joyce. “It’s an ideal time to take a subsidized student loan and then use the 529 plan later to pay it off.”
nia says
There is no such thing as free money… what I believe most parents with a small loan end up doing is paying it off within the first 120 days after it’s been disbursed sos there is no interest capping but otherwise, that loan is there and subject to any kind of change, even if you do not request it.
Daisy carlson says
My kids are going to school tuition free at a local private college. We love 2 minutes from their claims waking distance so no room and board… they got good grades in high school so the college offers a promise program for students with at least a 3.0 and their family income qualifies for state Pell grants. So my son took a couple small loans his first year ( but will pay them off before graduating)but hadn’t since and my daughter has zero debt and intact has been paid nearly 5k so far her first year
Jordan says
Wow! What an amazing program that this school offers! -Jordan, MSM Team
Laura Hamann says
My twins worked very hard in school to get to the top of their class and leadership skills and volunteering. They took 9 AP classes so they were able to graduate a semester early. They could’ve graduated a year early if they would have taken one or two classes in summer school. So that saved a lot of money right there. They received several private scholarships from Simon, Ford, Toyota and Scovell Scolars. 2 were renewable. They received $20k each from UT and then her junior year, one received $12k in departmental scholarships and the other a $6k internship scholarship. They both won the Daughters of the Revolution scholarship after hours of research .
I would look for scholarships monthly and send them all to them. Then I had a Upromise credit card that I got when they were 2 and managed to get almost $10,000 from it! I would have gotten more if I’d invested it in their 529 plan. We still had to do a small student loan to cover their apartment, but they lived farther off campus on the bus line to save money. I’m a couponer so I was able to get most of their cleaning items for free or close to it, and they used Fetch and Ibotta when grocery shopping.
So my biggest advice is apply for the university’s scholarships every single year…. it’s usually one application and then maybe a few extra for departmental and special scholarships. These are usually due right before spring break. Even my son got half his tuition paid for through his community college scholarship program.
For private scholarships you have to put the work in with essays. I helped my girls fill out the forms if they were too busy and they wrote the essays. They didn’t win a lot, but I’d say we did pretty good with one winning 4 and the other winning two… all $2,000 and up .
Also apply for the Fafsa on the first day it opens. Don’t wait!
Apply for the American Opportunity credit on your taxes. We got $2500 each back every year.
UT also had a tuition rebate program where they got $3500 back when they graduated for graduating in less than four years and have a fixed rate tuition.
After it was all said and done, we paid about $4,000 each for tuition for all four years. But then we got back $10,000 each in those tax credits!
So never say never! Research research research!!!!
Crystal Paine says
Oh! That’s a great tip on the UT tuition rebate program! Thank you for sharing for others to look into that!
Anna says
Have you discussed tax deductible savings plans like the 529 anywhere? That is definitely worth looking into if you have younger children at least.
Lisa says
Our oldest is attending College of the Ozarks (Hard Work U) and will graduate debt free next year. It’s been a definite blessing for her not to have to worry about going into debt!
Jordan says
Yay! That’s so great! -Jordan, MSM Team
Jill Burnett says
Remember to keep looking for new scholarships throughout your college career! Our daughter was an actuarial science major and actually ended up being given a full tuition scholarship for her junior year from the school’s business department! What an unexpected and amazing blessing! On a similar note, our son found a large scholarship to apply for during his sophomore year! He was at a private college in our state and the scholarship was specifically for someone going to a college in our state but who had graduated high school from our specific county!
Jordan says
Continuing to look for and apply for new scholarships is a great way to keep the cost down! -Jordan, MSM Team
Laura says
My daughter works part-time at Disney. They offer all full- and part- time employees free college tuition through the Aspire program! This is a wonderful benefit for those of us who live close to a Disney park. My daughter will graduate debt-free later this year. (Note: this is different from their College Program, an internship for college students).
Crystal Paine says
This is a great tip! Thank you for sharing!
Danna says
My oldest son is headed off to college in the fall. I’ve homeschooled him his entire life. He will be attending college for free. Here’s how: We did an academically rigorous homeschool plan as he was growing up. He took the PSAT/NMSQT his junior year. He took the SAT at lease once a year from 8th grade on. He used Khan academy SAT prep (free) for 30 min a day for most of his Sophomore year. This resulted in my son qualifying as a finalist for the National Merit Scholarship and getting a 1500 on his SAT. Quite a few universities offer very generous scholarships to National Merit Semi finalists and finalists. My son was offered a full ride scholarship including housing and food + an $8000 a year cash stipend from a school that he had never even considered. Unfortunately they didn’t offer his major. He ended up selecting the large State University 30 min from our house. It’s an excellent school with a great program in his major. They offer a scholarship for National Merit Finalists that covers 100% of his tuition,honors college, fees and books. He has earned another scholarship for $5000 a year (renewable for 4 years) as well. My my son has decided to save himself $18K a year by living at home and commuting. My husband works 3 miles from campus, so they can carpool. My younger son is a 10th grader. He has taken the SAT 3 times, and he’s studying everyday using Khan Academy SAT prep to get ready for the PSAT/NMSQT in the fall. Another great free SAT Prep resource is Schoolhouse.world. They offer free Peer taught SAT bootcamps online 4 weeks before every SAT date. My oldest son is a volunteer peer instructor for them. We don’t qualify for any needs based aid, so my kids are relying 100% on merit scholarships and work to get through college 100% debt free. So far so good.
Crystal Paine says
Thank you so much for sharing these great tips! So helpful!
Stephanie says
This is really helpful! Thank you
Ashley says
I would also say the major impacts the availability of scholarships. My major was in a high demand stem area and I had more scholarships available to me than my husband who was a history major.
I graduated 100% debt free because I had a high demand major, went to an inexpensive state school, got enough scholarships that they stacked to cover almost all of costs, and then I was an RA for 3 years to cover the rest.
My husband worked his way through college and also did a teacher scholarship program where he got a big scholarship but had to work in a high needs area for 2 years after college.
I actually also got my Masters and PhD for free and got paid to do so. Engineering and stem graduate students typically get free tuition and a salary while they are in school. Its not as much as a job but it was enough to live on.
Crystal Paine says
This is such helpful information! Thank you for sharing!
Anne M says
First thing to do is figure out if a 4-year degree will help your child’s career goals. Our son, who was never very academically oriented, spent his first year out of high school in an academic Gap Year, at a camp owned by a university. He didn’t really like the classes he took, but loved the kitchen helper job they gave him. He is now in an Internship at that same camp, working on skills to be a Kitchen Manager. His next step might be a 2-year certificate at a community college. Much better use of time and money than going to college “just because.”
Crystal Paine says
Yes! I so agree with this. I didn’t go to college, so we’ve always raised our kids with the mindset that they don’t *have* to go to college. But if it’s something that will help them further their career/learn skills in areas they are very interested in and passionate about then to explore all of the ways to pursue a college degree (or other forms of higher education) without debt.
Jessica says
Study in Europe. College is cheaper here (even for foreigners, I think). The Dutch folks I know aren’t paying off their student loans for decades after graduation.
Crystal Paine says
That’s so sad to have such large student loans that it takes decades to pay them off. 🙁
Chelsea says
Chick-fil-A does not offer college reimbursement as mentioned. Some operators choose to help their students in various ways but that is operator discretion and varies from store to store. They do have a wonderful opportunity to apply for a scholarship every year while employed. Please be careful mentioning such specifics in a post like this.
Crystal Paine says
Thank you so much for mentioning that!
M says
Our local Chick-fil-A does offer free college through Point University (online only) for students who work at least 20 hours a week. Every location is different. Be sure to check with your local franchise.
Crystal Paine says
Thank you for sharing that!
Katy says
Depending on your season of life, you can work for the college your child attends. I’ve worked for three colleges now and one free course a semester for yourself or a dependent is a fairly standard benefit. My current college employer offers free full tuition for every faculty or staff child!
Crystal Paine says
I love that suggestion! Thank you!
Kim says
The military! And, you don’t have to serve full time to get your college paid for. Reserves and National Guard have part time service obligations, and in my state the National Guard will pay for your tuition for any school up to our state school’s amount. There may be other bonuses available as well depending on job openings.
Crystal Paine says
That’s a great tip! Thank you for sharing!
Jessica says
My employer offers tuition reimbursement 50% per semester for dependents for 8 semesters. Spouses, parents, and children who are dependents of the employee can use the program, whether you have 1 child or 15, they all get it. There’s an application process each semester.
Crystal Paine says
That’s amazing!!
Annie says
Accept that every one of your children will have a different experience. Some will finish in 8 semesters or less and some may take 11 or more. Some may need to start at community college and then transfer to finish their degree. You may even have more than one in college simultaneously. One may be a honors student and another struggle with academics.
It’s never too late to get your own financial house in order. Being out of debt yourselves with robust savings is a firm foundation to build on. Teach your children how to keep their expectations in check. Model a great work ethic. Teach them how to work hard. Don’t coddle them. Consider they have a 20 hour a week PT job during their high school years, in addition to 60 hours during the summer months. While they’re in college continue the same employment expectations.
If you have been a one income household, you may be able to become a second income household and use that second paycheck to cash flow tuition.
No where does it say students must complete a degree in 4 years. No where does it say college is the best time of your lives. Studying abroad is not a given. (If there is an international requirement , research alternatives and work with faculty advisors-(alternatives do exist).
Have a positive attitude. Believe in your children and tell them often. Let them know you have their back with encouragement and problem solving.
Crystal Paine says
Such great tips here! I so agree that every child is different! We have a saying at our house that is “we re-evaluate school choices for every child, every year” and I think that can be applied to college, too!
JC says
Attend a college that accepts CLEP exams.
You can take them for free through ModernStates.org.
Many colleges will accept up to 30 credits of CLEP exams.
That’s one year free!
Cilicia says
👍🏻❤️ this! 🎉
Crystal Paine says
Thank you for mentioning that!
amanda says
How exactly do CLEap classes work? Like how do you do the work to be able to pass the exam? I’ve never heard of this but it sounds exciting.
Dee says
You take a test (for a fee) on particular subjects, and if you pass, you get college credit. It’s entered as transfer credits. At least it was years ago, when I used to administer them. It’s very worth trying practice tests before taking the actual test, to get a feel for the content and format.