How to Avoid Student Loan Debt: 5 Ways That Work

“Debt is dumb, cash is king…” That’s a quote from famous financial expert Dave Ramsey, who’s helped millions of Americans get on a path to financial success. The same saying applies when you’re thinking about how to pay for college. So how can you be smart about covering higher education expenses?

Whether you’re a high school student contemplating your next steps or a parent worried about rising tuition costs, keep these 5 valuable tips in mind for how to avoid student loan debt. 

1. Apply for Grants and Scholarships

Scholarships and grants are financial aid options that can be found through state and federal governments, private organizations, and colleges themselves. There are many types of tuition assistance programs available, such as sports scholarships, academic scholarships, essay competitions, need-based support, and more.

Funding could cover all or partial college costs, be one-time sums of money, or provide ongoing financial aid. It all depends on the specifics of the scholarship. Keep in mind that you could apply for and qualify for multiple opportunities, so spend time researching what’s out there.

High school students should start looking into this option as early as their junior year. Resources that can help in your search include CareerOneStop and the U.S. Department of Education. Eligibility requirements and deadlines vary, so it’s important to review the details of each scholarship you’re considering applying to.

Did you know?

NC has a tuition waiver program specifically for youth apprenticeships. This program allows you to earn a degree at no cost while gaining valuable hands-on experience in your chosen field. Ready to jumpstart your career and education? Learn more today on how you can pursue youth apprenticeships through Guilford Apprenticeship Partners (GAP).

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2. Be Selective About Colleges

Not all colleges are created equal, so take your time researching tuition costs, including in-state and out-of-state pricing. CollegeNavigator, a site hosted by the National Center for Education Statistics, offers current tuition rates for all colleges and universities in the U.S., along with other helpful information you can consider when comparing schools, including total financial aid awarded annually.

In addition to comparing costs, consider starting at the community college level. You could earn an associate degree at a community college for a fraction of the cost of a 4-year college or university. What’s more, many career paths are available to associate degree holders. Or, if you’d like to earn a bachelor’s degree, you could transfer to a 4-year college after you’ve completed your first two years at a community college.

How can you earn an associate degree without paying tuition?

Find out how high school students are taking college classes at no cost and getting paid for on-the-job training with industry experts.

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3. Work to Pay for School

It takes a little extra creativity and hard work, but cash-flowing school costs are a terrific way to avoid student loan debt. If you have a job, that means you’ll pay some of your tuition from your earnings, or you could use your pay to start a savings account for college. If you don’t have a job yet, consider getting one.

If you’re a student and able to live at home with your parents, this gives you some flexibility to put any extra pay toward school. If you’re a parent, you might budget a certain amount of money monthly to put toward your child’s education, and may even consider taking a part-time job for more income. Additionally, consider coupling this strategy with attendance at a community college.

While this approach will take the most time and effort, it will help eliminate the need for loan payments and borrowing at high interest rates. 

Looking for a better way to Earn and Learn?

With GAP’s youth apprenticeships, you can gain hands-on experience while pursuing your education — without the burden of tuition costs. Explore this opportunity today.

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4. See If Your Employer Offers Benefits

Another way to avoid student loan debt is to explore your workplace benefits, even if you’re just working part-time. For instance, some employers offer college benefits to cover some or all of the cost of earning a degree. Speak with your supervisor or human resources representative to find out if this opportunity is available to you.

If you find out that no such program currently exists, consider speaking with your manager to see if the company would be open to the idea of investing in your education. In the long run, the skills you gain from your education could be valuable to them, and they may even be eligible for a tax benefit.

You might even research companies that offer college tuition benefits and consider switching jobs. If you’re in Guilford County, NC, there are employers who are willing to invest in high schoolers just like you!

5. Participate in a Youth Apprenticeship Program

A youth apprenticeship is a unique combination of the benefits mentioned above. It’s a free career training program that allows you to earn a paycheck while gaining the skills needed for an in-demand career. You’ll work with a company in the industry you’re interested in, gaining hands-on experience while receiving guidance from an experienced mentor.

What makes this even more exciting is the chance to continue your education while you work. Through a registered youth apprenticeship program offered by GAP in partnership with ApprenticeshipNC, you’ll work toward an associate degree with tuition fully covered. Thanks to North Carolina’s community college tuition waiver programs, your tuition is paid for, allowing you to pursue a degree while stepping into the workforce. Many of these youth apprenticeships can even begin in high school, with applications accepted as early as 11th grade.

“I was initially interested in apprenticeship because I wanted the opportunity to get ahead in comparison to my fellow high school friends at the time. When they went to college, they were going to come out with debt and [have to search] for a job. I came out of my apprenticeship with no debt and little to no stress about having to find a job because I chose to stay with my apprenticeship company after I graduated.”

Guilford Apprenticeship Partners (GAP) Graduate

Lewis Wright, Production Planner

Ready for Zero Student Loan Debt?

If you’re in or around Guilford County, North Carolina, find out how you can get a tuition-free degree, work experience, and a paycheck through GAP.

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