Student debt is a $1.7 trillion national crisis, hurting the economy and causing 81 percent of adult borrowers to miss major life milestones. There’s often an accompanying psychological cost, as Clasp can confirm, with borrowers often ending up stressed, anxious, and having their quality of life reduced. Small wonder millennials and zoomers are attempting to avoid student loans like the plague (with varying measures of success).
The University of Arkansas is here to tell you that you don’t necessarily need student loans to go to college. With some careful financial planning and creativity, you could avoid loans altogether. Here, we offer some suggestions on how you could pay for college without taking out a student loan:
Find scholarships or grants
You may be able to qualify for a need-based, merit-based, or ethnicity-based scholarship or grant. It’s well worth your time to fill out a FAFSA application (Free Application for Student Aid) – it’s free, and there are no obligations involved. Your financial situation, GPA, accomplishments, and references may all affect your chances. Goodwall Blog covers 18 types of scholarships that are worth a look-see.
Pay in cash – and use a 529 account
You could attempt to pay for college in cash by saving up for your degree before applying. You may even be able to pay as you go. Careful budgeting and planning will help. Opting for a 529 educational savings plan or a 529 prepaid tuition plan is a proven, tried-and-tested way to save for college while enjoying tax breaks.
Pick an online degree
Online degrees are significantly cheaper than their offline counterparts. Furthermore, going to online school is significantly more convenient. You can learn from home over the internet. With many online programs, you go at your own pace while tending to other priorities – such as your family or job. Online degrees are comparable to traditional ones in terms of quality.
Go to trade school, attend boot camp, or join the military
You may not need a degree to achieve your career aspirations – you could go to trade school or attend a boot camp to pick up the skills you need instead. These options are cheaper and significantly faster, with many programs lasting less than a year. Enlisting is also an option, especially if you’d like to pursue an expensive degree (law or medicine). The military reimburses up to 100 percent of your tuition and also offers the GI Bill (about $36,000) for educational purposes afterward.
Pick up a side gig
Side hustles can be surprisingly lucrative, not to mention being something you can do in your spare time while you go to college. Some options are tutoring, babysitting, photography, and freelance work. Having an in-demand skill – like coding – can help you to land an especially well-paid gig. You can realistically learn how to code in a few months. Use a reputable resource like Code Profs to learn how to code, receive expert tips, and find specific troubleshooting advice when you get stuck or encounter an error message.
Launch a side business
Having a side business gives you much more flexibility than a side gig or job. It’s also not as hard as you might think, nor does it necessarily require a massive investment. You need a business idea and a business plan to get started. Forming an LLC for your venture may be a good idea. It offers limited liability protection as well as tax benefits, less paperwork, and, again, more flexibility. You can file the paperwork yourself to avoid paying a lawyer. Formation services are a – cheaper – option. Before you move ahead, check the rules for forming an LLC in Arkansas.
Approach the UOA Office of Financial Aid
You’re not alone in your quest for financial aid. UOA’s Financial Aid Office can assist you in your journey, helping you secure financial assistance, fielding questions, and offering personalized assistance in other ways. You can opt for one of our useful services, such as Financial Aid TV, Ask Razorbot, and UAConnect Help.
Conclusion
Opting out of going for a student loan can have positive, far-reaching effects. It will significantly reduce the mental and financial burden you’d have to bear otherwise, not to mention help you achieve your life goals on time and make long-term wealth-building easier. You should, ideally, try out all the alternatives we’ve suggested, from scholarships to launching your own business – something is bound to come from your efforts.
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