A Student's Guide to Debt-Free College

With college acceptance letters arriving in mailboxes and inboxes around the country, a new chapter begins for many students and their families. However, the excitement of college acceptance often comes hand in hand with the daunting question, "How are we going to pay for this?" 

Whatever it is, the way you tell your story online can make all the difference.

As you navigate through myriad financial aid offers and payment options, it's essential to make informed decisions that will not only enable you to pursue your academic dreams but also safeguard your financial future.

It is possible to go to college debt-free! The road may look different than you planned, but it is definitely possible. It is our reality that many of our parents may not have gone to college. Only about one-in-three adults in this country have a bachelor’s degree or higher. For Black Americans, that number is closer to one-in-four. 

Your folks may not have the experience or information to help you navigate all of your options. So buckle-up, I’ve got you covered. 

There are two important things you need to understand about going to school debt-free. 

First, how much a chosen school actually costs. Universities and colleges have what’s called a “sticker price,” which is its published tuition and fee rates. But there is also a “net price” based on your specific financial and academic circumstances. 

You can find the net price for any school by googling the name of that school and adding “net price calculator.” This tool will help you understand the true cost of attendance. 

Second, you need to figure out how to pay for your education. You have access to many options.

Here is a quick summary based on certain characteristics you may have:

Student Background

Funding Sources

Talented

Merit Scholarships

Low-income

Need-based scholarships

Low-income, high-achiever

Colleges that meet 100% of need

Middle-income, middle-achiever

Outside scholar- ships & cash flow

Merit Scholarships

If you are talented academically, athletically, or musically, merit-based scholarships will be your first line of defense. The two most common types of scholarships are from the college itself and from national organizations like the National Merit Scholarship Corporation. The latter awards National Merit Scholarships to students who score well on the PSAT exam in 11th grade. 

There are also many private scholarships that award money. The Jackie Robinson Foundation and the United Negro College Fund are two organizations that award millions of dollars each year to Black students for college. 

Corporations like Coca-Cola and foundations like the Gates Foundation provide scholarships to high-achieving students. 

If you have good grades, the world is your oyster. Scholarships are also available to student-athletes and musicians. If you can’t get any information from your high school, it never hurts to reach out to colleges directly. 

Need-Based Scholarships

If you come from a low-income family, this type of scholarship is an important addition to your list. Your family’s financial background is used to determine this scholarship. The more your family needs financially, the more scholarship funding you receive. 

The most common source of need-based financial aid for college is the federal government, followed by any need-based funding that may be available from your state or from the college itself. 

Federal Grants fall under this category of funding through the federal government. To apply for this type of aid, you must complete the Free Application for Federal Student Aid (FAFSA). Once submitted, you will receive an award letter with your financial aid offer.  It is crucial to thoroughly review your options. Typically, your offer will include a mix of grants, work-study opportunities, and loans. 

Low-Income High-Achievers

If you identify as a high-achieving student from a low-income family, you have access to some of the most well-regarded institutions in the country! Many of these may provide you with a full scholarship upon admission. 

The most selective colleges tend to have a lot of money available for financial aid, as well as a value that no student who is admitted is unable to attend due to finances. 

These colleges also tend to place a high value on equity, so they ensure that students from every socio-economic background are represented at their school. Coming from a low-income family is a big plus for your application if you have the grades. 

To find a list of colleges that fit this category, google “colleges that meet 100% of demonstrated need.” There are about 75 colleges on this list. 

There are also plenty of scholarship programs for students like you. A few of the best ones are the Ron Brown Scholar Program, the Jack Kent Cooke Foundation, and QuestBridge. All three of these provide advising support to help you. Definitely consider applying if you fit in this category. 

If You Don’t Fall Into a Category

Going to college debt-free is still very possible. Sometimes, we forget that colleges are businesses and we are their customers. It’s our responsibility to shop around and find the best deal. 

The first place to look is at the cost of the public colleges in your state. As a state resident, you are eligible for subsidized tuition rates. Or, if a four-year public school is out of your price range, consider starting at a local community college. Tuition rates tend to be lower at these institutions since they don’t have all of the bells and whistles of four-year schools. 

If your goal is to earn a bachelor’s degree, then you can complete the first two years at a community college for a much lower cost. The two-year option gives you an associate’s degree, which you can then transfer to a four-year college to complete the remainder of your bachelor’s degree. This is a smart option for those of us who are cost conscious and may not have additional scholarship funds to cover the bill. 

There are also plenty of local and regional scholarship options that may fit your needs. Your high school counselor may have a list of these scholarships and there are plenty of websites you can search for scholarships online. Public colleges and universities, including community colleges, often offer scholarships as well. 

Alternative Options

If going to college debt-free is important to you and none of the above options work for your budget and needs, there are still ways to make it work. 

Perhaps your situation requires that you work full-time right now. Many employers and programs will subsidize or fully cover the cost of education for employees. AmeriCorps is an example of a government-funded program that provides a modest living stipend in addition to educational funding upon completion. 

Another example of a company that supports its workers with college costs is Starbucks, which covers tuition costs for employees to earn up to a bachelor’s degree online from Arizona State University. 

Military enlistment is another popular route for those who don’t mind signing their lives to the government for a few years in exchange for the benefits, including college funding. 

Putting It All Together

If you are willing to put in the time and a little elbow grease, you can find many options to help you with the cost of education. There are many scholarships suited for specific students including merit-based and need-based awards. 

Even if none of the highlighted pathways for scholarships fit your current situation, there is plenty of opportunity to be mindful and cost conscious about your college education. 

Remember, the choices you make about how to finance your education will impact your financial life long after you leave college. Take the time to research, ask questions, and consider your options carefully. With the right approach, you can achieve your academic goals without compromising your financial future.