With the rising cost of tuition, funding a college education can be challenging. In 2023-24, students paid an average of $28,840 to $46,730 for tuition and fees, housing and food, and allowances for books and supplies. And while student loans may be available from the federal government and private lenders, they come at a price. While you may be able to borrow the money you need to pay for school, they have to be repaid with interest.
In a single year, 31.5% of undergraduate students will accept loans, and the majority will spend the next twenty or even thirty years repaying those loans. Before taking on any loans, it’s smart to consider alternative funding for college students. Fortunately, there may be several alternative college funding options that don’t need to be paid back (although there could be other obligations or certain exceptions).
Look through these seven alternative college funding options and make a note of how each one works. Once you understand the eligibility criteria, you can see what you qualify for and what best suits your needs.
First Step Always: Fill Out FAFSA
First and foremost, if you want financial aid, you have to fill out the Free Application for Federal Student Aid (FAFSA). Without completing the FAFSA, you cannot be considered for grants, work-study programs, or federal student loans. Many colleges also use FAFSA info to determine how much aid they can give you. The earlier you fill it out, the more time you will have to see what options are available and not miss out on any financial support.
Seven Alternative Ways to Pay for College
1. Scholarships
When it comes to funding your college education, scholarships are an unbeatable resource. They provide money that doesn’t need to be repaid, and the opportunities are virtually limitless. Here’s why scholarships should be your go-to option:
- They don’t need to be repaid: Plus, there’s no interest to worry about.*
- Unlimited Applications: You can apply to as many scholarships as you want. The more you apply, the higher your chances of winning.
You can find scholarships from various sources: federal and state governments, universities, private organizations, and even local businesses. Scholarships can be merit-based, need-based, recurring, or one-time awards. Don’t forget to explore local scholarships, as they tend to be less competitive and easier to win, yet still valuable in reducing your need for student loans.
2. Grants
Grants are another great way to fund your college education, and like scholarships, they don’t need to be repaid (except for certain situations). However, grants are usually need-based and are only offered by federal and state governments, universities, colleges, and a few non-profit organizations.
To qualify, you’ll need to provide documentation supporting your financial need in order to get grant money. Filing the FAFSA (Free Application for Federal Student Aid) is mandatory to be eligible for federal grants, including the Pell Grant, which is one of the most well-known need-based grants available to students from low-income families.
3. Work-Study
Work-study is a federal student aid needs-based program that allows you to earn money through approved jobs while studying, typically on campus. You might work in the dining hall, library, gym, or laboratory, and the income you earn can help cover tuition fees. To participate, you must file the FAFSA, and your financial circumstances at the time will determine your eligibility. Be aware that there are restrictions, such as a limit on the number of hours you can work and a cap on earnings. For more details, consult your school’s financial office.
In addition to federal work-study, some schools offer their own programs. These may include working part-time or full-time for the university in exchange for a percentage-based tuition discount. This not only reduces your need for student loans but also helps cover living expenses with the extra money you earn.
4. Part-Time Work
If you don’t qualify for work-study or you did not enroll in the program, you could take up a part-time job to earn more money for college. This alternative college funding option has a higher income-earning potential as compared to work-study. You will also have a large variety of jobs to choose from.
If you choose a part-time job, make sure that it doesn’t interfere with your academic work. That is your topmost priority. Do not work more hours than you can handle. If you don’t leave enough time for studying, not only will your grades suffer but you’ll also end up feeling stressed and overwhelmed. This can lead to several undesirable consequences.
5. Employer Sponsorships
Many large corporations offer interesting alternative funding for college students by way of employer sponsorships. As part of this agreement, the company offers new employees, usually new graduates, benefits such as tuition reimbursement. In return, the employee must agree to work for the company for a specified number of years.
The exact terms and conditions vary from one company to another. The eligibility criteria also vary among companies. Most companies base eligibility on the recipient’s field of study. Working for a company that offers employer sponsorships is a great way to lower the cost of your degree.
6. Military
If you want to serve your country and help pay for college, you might consider joining the military. Programs like the Military Tuition Assistance Program pay active-duty service members up to 100% of tuition expenses and there are over 1,900 colleges that offer service members a chance to earn their degree.
There are even a number of opportunities to further your education after your service in the military, thanks to the Post-9/11 GI Bill. This covers up to 100% of college tuition and provides up to $1,000 monthly for rent. You can pursue a college degree, vocational training, or trade school.
7. Fundraising
Don’t underestimate the power of community and technology. Consider starting an education fundraiser on GoFundMe to get help with your tuition. Once you create your campaign, you can easily share the link with friends and family. Make sure to share your “why”—why you aspire to go to college, your challenges, and how the funds will help you reach your goals. Set a clear goal and break down the costs, such as tuition fees, books, and other college expenses.
There’s no doubt that paying for college can be overwhelming, but you do have a few alternative college funding options that can help you lower the cost of tuition. Before you jump to applying for student loans, consider researching these free aid options to see what is available to you!
Still need a loan to fund the gap? Try College Raptor’s free Student Loan Finder to compare lenders and interest rates side by side.
Disclosures: References to resources or organizations listed in this article do not constitute or imply endorsement or support by Citizens.
*While a scholarship does not have to be repaid, there may be other obligations associated with the scholarship.
| Lender | Rates (APR) | Eligibility | |
|---|---|---|---|
 |
5.50%-16.12%* Variable
3.99%-15.61%* Fixed
|
Undergraduate and Graduate
|
VISIT CITIZENS |
 |
5.54% - 15.70% Variable
3.99% - 15.49% Fixed
|
Undergraduate and Graduate
|
VISIT SALLIE MAE |
 |
4.63% - 17.99% Variable
3.49% - 17.99% Fixed
|
Undergraduate and Graduate
|
VISIT CREDIBLE |
 |
6.00% - 13.75% Variable
3.99% - 13.75% Fixed
|
Undergraduate and Graduate
|
VISIT LENDKEY |
 |
5.66% - 14.72% Variable
3.69% - 14.56% Fixed
|
Undergraduate and Graduate
|
VISIT ASCENT |
 |
3.70% - 8.75% Fixed
|
Undergraduate and Graduate
|
VISIT ISL |
 |
5.62% - 16.85% Variable
3.69% - 16.49% Fixed
|
Undergraduate and Graduate
|
VISIT EARNEST |
 |
5.00% - 14.22% Variable
3.69% - 14.22% Fixed
|
Undergraduate and Graduate
|
VISIT ELFI |
