How I Am Graduating College Debt-Free

Yes, you read the title right. I am graduating from college completely debt-free. That's right—no loans.

No, my parents aren't loaded. No, I didn't rob a bank. And no, the title is not clickbait. I truly am getting my degree without going a penny into debt.

You might be wondering how that's even possible. After all, everyone goes into debt for their degree, right? My friend, this is so very wrong! What if I told you that it is actually very possible to graduate without having to worry about paying back thousands of dollars and wondering how you're going to make ends meet after you graduate?

Keep reading and I'll tell you.

But first, let me tell you a story...

When I first started looking at colleges around 5 years ago, I approached the decision carefully (and prayerfully). After all, college is a huge commitment; you're spending thousands of dollars and 4+ years of your life on a path that affects the rest of your future! It's not a choice that should be taken lightly.

During this period of soul-searching, I thought over multiple options. I considered taking a gap year, I considered trade school, and I even considered not going to school at all. In the end, I realized that I did want to go to university to get my degree, but there was a catch...

I did not feel comfortable with the idea of taking out loans.
Period.

(Note that I have nothing against people who take out loans, but I personally did not feel at peace about it for me and my situation.)

I remembered when I was 10 years old, the day that my dad paid off the last of his college loans. I remembered how my parents were so relieved that the debt was finally gone, and I never wanted to have to experience that myself. In later years, I confided in my parents about my concerns, and they were sympathetic listeners. 

I knew that this abnormal choice of mine would definitely make things much harder in the short-term, but I thought about the long-term implications of this choice. If I took out loans, how would that affect me 5 years later? Or 10 years later? What if I didn't make enough money to support myself and pay off my loan after graduation? What if I got married and my husband had to share the burden and help me pay for my education? What if I wanted to travel after graduation? What if...?

Then I finally decided to come up with a game plan to make my debt-free education a reality. Now here I am, currently at the start of my final semester of college and I checked my financial aid and officially confirmed that I AM COMPLETELY DEBT-FREE!! I will be applying for graduation in a few weeks and this chapter of my life will finally draw to a close.

To celebrate this occasion, I am dedicating this post to explain 10 Tips and Tricks that I know and/or have personally used to help me graduate completely debt-free! So whether you are an incoming freshman, a stressed sophomore, or a concerned parent, these tips can save you money on your education and prevent you from having to take out huge loans that you might regret down the line. As you read, keep an open mind and remember that this is not impossible.

1. Get Your Priorities Straight

The first step in this process is to sit down and decide why you want to go to college in the first place. If your goal in college is to party all night, get hungover, and then skip class, this plan is definitely not for you because your goal is obviously not to gain an education while staying out of debt––it's to waste time. While your lifestyle is your business, you have to remember that time = money and that the 4+ years you spend in college is worth a lot of both! Even if you take out a loan and don't have to pay anything in the moment, that money adds up quickly. So wasting your (or your parent's) valuable time and money by skipping classes is not the way to go... Especially if you don't want to have massive debt hanging over your head when you leave that four-year-long party.

If you truly want to gain a meaningful education and graduate debt-free, you are going to realize that the next 4+ years of your life are going to require a lot of diligence on your part and some degree of sacrifice as well. This might mean learning to say no to parties, saying no to going out to eat every time your friends do, and being content with quiet weekends at home or at work. If your heart and mind are not in it, it will be next to impossible for you to graduate debt-free because the willpower isn't there. Make up your mind to be okay with a little struggle for a few short years so you can have an easier time long-term!

Remember, if you can graduate debt-free, you are one step ahead of the majority of people your age. 

2. Community College First

A lot of people pick their dream school and only consider going to that one school from day one. But the truth is, the vast majority of universities charge more for basic classes than community colleges do. In fact, in a post on The Hechinger Report's website, the College Board explains that "Average tuition and fees at community colleges cost about a third as much as at the lowest-tier public four year and one-tenth as much as at the lowest-tier four year private university..."

Sounds like a no-brainer to me!

To bypass these extra expenses, make the decision to get your basics at your local community college and then transfer to a university after you get your basics out of the way. This not only helps your pocketbook, but it also leads into the next point...

3. Get Those Grades Up

One of the perks of attending community college first is that it gives you time to not only find your groove with college-level work, but it gives you time to bring your grades up. In my experience, transfer students with good grades can score better/larger scholarships from universities when they transfer as opposed to incoming freshmen. I personally did this and was shocked at how much more scholarship money I was awarded because I chose to transfer instead. Do your research and see if there's a difference; you might be surprised too!

Also, if you’re a high schooler preparing to enter community college—study hard for your SAT/ACT and don’t be afraid to take it more than once. I took my ACT 5 times and was able to raise my score from a 21 to a 25, which helped me get a scholarship at my community college starting out!

In this same vein of advice, try to CLEP out of as many classes as you can and/or do dual credit while you're still in high school. (This last one was not something I personally did, but I know many students who did this and were able to save a lot of time and money!)

4. Apply for Scholarships/Grants/Aid

Yes, it’s time-consuming. And yes, it’s repetitive. But scholarships and grants can help you SO MUCH. Apply to as many as you can, no matter how much or how little they're offering. Even a simple $200 grant can help you pay for those pricey textbooks you weren’t expecting to worry about.

Also, most schools require this, but always be sure to check out your FAFSA (and write down your ID and password!!!) because most people can get some form of aid from that.

Furthermore, you should even apply for scholarships/grants through your school. I've mentioned that you can receive merit-based scholarships for your good grades, but there are also need-based scholarships and talent-based scholarships (athletics, music, etc...) that you can also apply for directly through your school. These will require more of your time, but they are always an option!

5. Military Service

I personally have never served in the military (but it is an option for students who want to graduate debt-free. I won’t be touching on it though since I have no experience with it). However, my father previously served in the military and he had leftover aid that was just sitting untouched. 

How did that affect me, personally? Well, if you are a dependent of a veteran, most states will make accommodations, offer scholarships/grants, or even provide special aid for you. In some cases (such as mine) different states can transfer “leftover” aid from the veteran to their dependent. The aid that I used to do this, which is specific to Texas, is called Hazelwood.

According to the Texas Veterans Commission's website, "The Hazlewood Act is a State of Texas benefit that provides qualified Veterans, spouses, and dependent children with an education benefit of up to 150 hours of tuition exemption, including most fee charges, at public institutions of higher education in Texas."

Essentially Hazelwood exempts Texas veterans and/or their dependents from paying for tuition at public universities. Thanks to my father’s service and the Hazelwood program, I haven’t had to pay out-of-pocket for my tuition for the last two years of my college education.

If you have a parent/relative/spouse who has served/is serving, be sure to check your state’s specific benefits for veterans and their dependents. There are so many military families out there who have no idea how much aid they have available to them, so they just go without. Be sure to research the ins and outs of these benefits and please take advantage of them if you can! It’s the least our nation can do to say thank you for military service. But be prepared––if you do decide to take this route, there is a lot of paperwork involved. It can be stressful, but just be patient and keep on keeping on.

6. Commute/Live Off-Campus/Go Online

Many people might not like this one, but remember how I talked in point #1 about prioritizing and being willing to compromise for a bigger goal? This is one of those times that you might have to remember that. A lot of students, whenever they reach college age, immediately want to move out of their family home and get settled into the dorms. It’s understandable because it feels like a rite of passage into young adulthood... but if you want to graduate debt-free, you might consider skipping the dorm.

The majority of the time, the living expenses (dorm, meal tickets, etc...) associated with on-campus housing can cost more than the tuition itself! For example, universities that house students usually require all on-campus students have a meal plan because they don’t want students to go without eating. While it sounds good in theory, it can really hurt your wallet if you choose to go this direction, so it’s better to research it and skip out on it if it saves you money.

This also ties into attending community college for your basics because most universities require freshmen to live on-campus for their first year anyway. However, if you transfer from another school, this is generally not applicable. Commute to your community college or take online classes at home for your first two years and then revaluate.

Are there any nearby universities that you’d be interested in?

How far would it be to commute?

If it’s too far to commute, look at budget-friendly living arrangements. Many people are shocked to find that living off-campus can actually be cheaper than on-campus living in the long run. The last semester of my Sophomore year, I found a little hole-in-the-wall studio apartment that was all bills paid, was 15 minutes away from my new university, and was only $650 a month. It was not the Hilton, but it certainly was nothing to sneeze at. I made it work in that apartment for nearly year before I found another living situation in a luxury apartment, only 2 minutes away from my school, that I split with a roommate, where I paid closer to $700 a month in total. 

Here's the crazy part––even living in that luxury apartment was cheaper for me than living on-campus.

I'm not saying that you should live in a luxury apartment. I'm saying that you should really price check your housing situation before blindly signing your life away. The thriftiest option of all is to continue to live at home and commute (if possible). But if this is not an option and you need to live closer to campus, definitely do your research beforehand and see if you can find cheaper options for housing––even if it means couchsurfing for a little while.

7. Get a Job

A lot of students worry about school/work/life balance, so they cut out the middleman and don't work in college at all. I'm here to tell you that this is a huge mistake, especially if you want to graduate debt-free!

Having a job not only brings in extra income for you to live off of, but it also gives you a chance to start a savings account and to build up experience while getting your degree. Granted, maybe working at your school's bookstore or washing dishes at a local restaurant is not exactly what you pictured yourself doing on the weekends, but you have to remember your ultimate goal. Besides, if you can land a job that is somehow relevant to your major, you might be able to get some amazing experience to add to your resume, which will definitely help you in the long-run.

I worked retail, gave music lessons, worked as an administrative assistant, and nannied all throughout college. Did I love all the jobs I had? No, absolutely not. At different times, I did different things, but they all helped to support me in my endeavor to graduate without debt. There were bad days. There were times where I had to turn down plans with friends because I had to go to work. There were days that I was exhausted and didn't want to study when I came home from work. There were days that I cried because I was so sick of the whole thing and just wanted to give up. But I got through it and I'm so glad I did.

Now if you are still concerned about balancing school and work, another solution is to work a full-time job during the summer and get all the hours you can while saving as much as humanly possible so you can work less during the school year. (When I nannied, I worked a lot during the summer. I remember one week, I actually clocked 66 hours for the week and was blown away with how much I had worked. However, I was able to put some money back from that summer so when I went back to working 25-30 hours a week during the school year, it wasn't an issue.)

I've also known of people who alternate going to school and working in order to have the money they need. For instance, you can work full-time for a year while saving and then attend school for a year while working part-time. It will take longer for you to graduate, but if that doesn't bother you, it's always an option!

8. Double-Up

Believe it or not, doubling-up can make a huge difference. What I mean by this is you can take summer classes as well as take more than 12 hours (full-time) at school. While it is a lot of work at once, it can help you save money in the long-run.

Think about it, every semester you spend at school is another 5 months of bills that have to be paid. Your housing bills, gas for the commute, food... All of those variables add up every semester. So it's really better to graduate as soon as you can so you can save on things like housing/commuting expenses.

I've had many semesters where I've taken 15+ hours during the semester to speed up the process of reaching graduation. In the 2020 school year, I've actually taken 15 hours in the spring and fall and 9 hours in the summer. It's a lot of work, but totally worth it to graduate sooner.

9. Be Willing to Compromise on Schools

Look, I know that nearly everyone has their dream school. Whether it's that one school with the amazing football team, that stellar teaching program, or the one that your mom went to, it's best to remember that a degree is a degree... no matter where you go.

Granted, degrees from some schools do have their perks! Name-dropping schools like Harvard, Stanford, or Texas A&M might help you make some quick connections in the workplace and might get your foot in the door. But as a whole, it's your work ethic and attitude towards the work that matters more than where you received your degree. If your dream school's price tag is outrageous but you still want to graduate debt-free, maybe consider looking at another school.

I actually ended up not attending my #1 school because the price point was too high. I had already decided that taking out a loan was not going to be an option for me and that particular school was not offering me the same kinds of scholarships that I could find elsewhere, so I took that school off my list.

Do I regret it? Not really. I do think that I would've been a good fit at that school and that I would've had different opportunities there, but I've learned a lot from the smaller school I've ended up at and have had incredible opportunities at my current school that I doubt I would've had at a larger school.

10. Learn to Budget (and Stick to It!)

I mentioned earlier in this post that I had an apartment alone and a luxury apartment with a roommate. This was possible because 1) I maintained a job and 2) I learned how to maintain a budget.

So many young people do not know how to make a budget, but it is such an important skill to have during college and to carry with you after graduation. If you learn how to make a budget and stick to it, you are miles ahead of the rest of the crowd out there.

Keeping a budget is vital because it helps to keep you accountable about where your money goes (and stays) and helps you to plan ahead. I struggled with keeping a budget when I first started out and had some very tight weeks because I didn't spend and save my money wisely.

The thing that worked best for me was a budgeting program called YNAB (You Need A Budget) and it helped me to sort out the money I had coming in, designating it to specific things. For instance, if I knew I was going to have two paychecks before rent was due, YNAB would help me divide up how much of each paycheck needed to go towards rent and how much I'd have left for other expenses that month. The best thing about this program was that it gave me a 1-year free trial because I was a student.

By doing this, over time I learned how to live on very little money. I learned how to be thrifty in areas I didn't know I was spending a lot. I learned how to spend less than $40 a week on groceries, how to cut back on unnecessary things like fast-food and Starbucks, and how to prioritize financially. 

(During this period, I also learned about how many student discounts you can get as a college student! You'd be shocked at how many places offer deals to college students if you show them your student ID or provide them with your student email address. Amazon offers Prime for students, Spotify offers a deals to students, and numerous restaurants and clothing stores offer discounts as well. Be sure to research this and utilize it! And remember that a few dollars here and there adds up!)

 

Those are essentially all of the tips and tricks that I used to graduate from college completely debt-free! Thanks to things like amazing scholarships, veteran benefits, and hard work, you can do it too.

Honestly, it wasn't easy for me. I had to be willing to "miss out" on some of the "college experience" in order to make this goal a reality. But in the end, I had to remind myself of what really mattered to me––my education and financial freedom. At the end of the day, the "college experience" is not what real life looks like at all. Real life involves making sacrifices sometimes, working hard, and learning to be okay with not always doing what you want to do. If college is truly meant to "prepare" you for the "real world," then I think the experience of graduating debt-free is an amazing way to do that.

I hope that this post helps someone out there! And even if you aren't graduating totally debt-free, these tips can still help you to save money and be able to take out fewer loans over the course of your education. Be sure to leave a comment down below if your learned something new or if you have any questions. Also, please share this post with up-and-coming college students to spread the news––it's not impossible.