Even though you are excited about going to college, you are still likely wondering how much debt you will have to accumulate to graduate. Almost every student seems to need student loan money to cover tuition, fees, room and board, books, transportation, meals, and more. So, is it just a fact of life that getting a degree means piling on the student loan debt? Far from it. Actually, an average of every 2 out of 5 students who earn an undergraduate degree have no debt upon graduation. How do they do it? Surprisingly, they are not all independently wealthy, or trust fund babies. Most simply made good choices…and so can you.
How to Avoid College Debt
1. Choose to stay in state. Around 85% of undergraduates who managed to remain debt-free chose to attend an in-state college, while 78% went a step further with an in-state public college. Experts believe that there are several factors that create this possibility. First, in-state public college tuition is lower than the alternatives. In addition, some of these students chose to live at home while earning a degree,saving money on room costs, food, and more
2. Choose nonprofit schools. Did you know that there are both for-profit and nonprofit colleges and universities? Even though many of the for-profit schools are considered to be more prestigious, fewer than 7% of students who attend them are able to graduate without debt. That number rises to around 30% for students who attend non-profit schools and over 50% at public colleges. Is the prestige of the university’s name really worth the debt load?
3. Consider community college. If you can get into the career you want with a two-year degree from a community college, why not do so? Community colleges don’t require housing fees or a meal plan, which saves money right away. In addition, the tuition rates are often much lower than for a traditional 4-year college or university. There are many great careers that offer entry-level positions for those with a two-year degree. If you are interested in one of these careers, you should look into community colleges since half of all debt-free graduates attended community colleges.
4. Compare tuition rates. Even a few thousand dollars a year makes a huge difference in your debt load. This is proven by the fast that almost 90% of students who graduate debt free graduated from a school with tuition and fees that were less than $10,000 a year. If you are considering more than one school and are having trouble deciding, figure out the cost of attendance and go for the lowest one.
5. Buy cheap textbooks. If you buy all new books, your textbooks will cost several thousand dollars each year. Look for used books, rentals, or swaps to save cash. It really makes a difference, as is proven by the fact that 75% of debt-free graduates recorded spending less than $1000 a year for textbooks. If you want to stay debt free, become familiar with all local and online sources for super cheap textbook sales and rentals.