3 Ways to Pay for College Without Federal Loans

If you want to pursue a bachelor’s or master’s degree, there’s a good chance you’re wondering how to pay for it.

Having a college degree can greatly impact your earnings potential. In fact, according to USAFacts, ¹ those with a bachelor’s degree earn nearly 68% more than those with only a high school diploma. However, taking on large amounts of debt can feel daunting.

The good news is that it’s possible to earn your degree without taking out loans (or without your family helping). All you need are a few tips on how to get there.

How Expensive Is College?

Before we get into how to pay for college, let’s get a realistic sense of common expenses. These are the main costs you should consider:

• Tuition: For the 2023-2024 academic year, the average cost of in-state tuition ² at a public four-year university was $11,260.
• Tuition + Room and Board: For four-year universities, tuition plus room and board in New Mexico costs around $25,712. ³
• Books and Supplies: Textbooks, in particular, are pricey, and you can expect to spend around $1,212 in your first year of college. ⁴

And don’t forget about your typical living costs like food, laundry, and other monthly bills. When you consider all of these college necessities, it’s easy to see how student costs can add up and why so many people choose to take out loans.

Key Facts About Federal Student Loans

Using loans to pay for college is a common choice among college students. However, managing your loan debt wisely can help ease your transition into life after graduation and reduce the burden of student loan repayment.

Education Data Initiative ⁵ has compiled some key facts about student loans, and these are the big takeaways:

• Currently, the average federal student loan balance is $37,853.
• On average, undergraduate students borrow $32,362.
• There is $1.753 trillion in U.S. student loan debt.

The report highlights the importance of addressing rising college costs and improving access to financial resources, which can empower a diverse range of students to pursue their academic and professional goals with confidence.

Are Student Loans the Only Way to Pay for College?

As the cost of higher education continues to rise, many prospective students find themselves grappling with the question: are student loans the only viable option for funding a college education?

While loans are a common method for financing tuition, they are far from the only solution. A growing body of research and resources highlights alternative funding options that can help students minimize debt and achieve their academic goals. According to Bankrate scholarship statistics, ⁶ scholarships, along with grants, made up the second-largest source of financial aid during the 2022-23 academic year, covering an average of 29% of students’ college costs.

Additionally, initiatives such as income-share agreements and employer tuition assistance programs are gaining traction, providing innovative pathways to fund education without the burden of loans.

Earning your degree without taking out loans is an impactful decision to consider. Let’s explore three strategies for making it possible.

1. Explore Grants and Scholarships

FAFSA doesn’t just offer loans. For undergraduates, grants are also available, which you don’t have to pay back. These are typically need-based, so if you come from a low-income family or your parents are unable to assist you, this option is definitely worth pursuing.

Scholarships are also a great avenue. Like grants, they don’t need to be repaid. You can find scholarships on search engines like Fastweb, Scholarships.com, or the U.S. Department of Labor’s Scholarship Finder. Depending on your university, you may even be able to find resources directly through your school.

Earn Scholarships for NMSU Global Campus

At NMSU Global Campus, we’re committed to making education affordable and accessible to as many students as possible. That’s why we don’t just offer student loans and affordable tuition — we’re also proud of our various grant and scholarship opportunities.

A particularly exciting one is the New Mexico Opportunity Scholarship, which, if you’re eligible, could cover up to 100% of your undergraduate tuition.

2. Earn Your Degree Online

If your goal is to earn a degree without relying on student loans, one of the best strategies is going to school online.

Online school gives you the flexibility to keep working while you’re pursuing your degree. By maintaining a steady income during your term, you can pay for each necessity as it arises rather than having to go into debt.

As a bonus, online college is more affordable:

• Reduced Costs: If you’re going to school from the comfort of your own home, there will be no changes to your existing room, transportation, or basic living costs.
• Reduced Tuition: Not only can you avoid out-of-state tuition fees, the tuition rates for an online college are typically much lower.

If you’re looking for an affordable, 100% online university experience, consider applying to one of the 70+ degree and certificate programs that NMSU Global Campus offers.

3. Find a College That Gives You Credit for Work/Life Experience

Another key to paying for college without federal loans is taking fewer classes. After all, the fewer classes you have to take, the fewer credit hours you’ll have to pay for. The key is finding a college that gives you credit for work/life experience.

What does that mean? If you’re able to prove that you have knowledge in a certain area, then you won’t have to take a class on that specific matter. Proof of knowledge might come from previous college coursework, job training, or other relevant life experience.

Earn Credit for Prior Learning at NMSU Global Campus

At NMSU Global Campus, we don’t just offer Credit for Prior Learning. We make the process of transferring credits as easy as possible. To see if your experience will transfer, simply fill out this form, and a member of our admissions team will get in touch with you to give you an answer.

Pursue Your Academic Dreams

In short, you shouldn’t let the cost of tuition get in the way of your goals. College degrees can be life-changing, and the benefits of having one far outweigh the expenses.

If you’ve ever thought a college degree was out of reach, we’re here to tell you it’s possible. At NMSU Global Campus, you’ll have all the benefits of a traditional, four-year university at a fraction of the cost:

Type of School	Cost Per Credit Hour
4-Year Private School	$1,642
Public University with Room and Board	$933
NMSU Global Campus	$395.40 **

**This is the cost per credit hour of an undergraduate degree at NMSU Global Campus.

Indeed, this is the path that NMSU Global Campus offers you: 

• Take advantage of our affordable tuition.
• Apply Credit for Prior Learning to reduce the number of classes you have to take.
• Explore scholarship opportunities, such as the New Mexico Opportunity Scholarship.
• Earn your degree online while working full-time.

If you’re ready to pursue a transformational education from an accredited university, learn from expert faculty in the comfort of your home, and enjoy the benefits of an affordable education, NMSU Global Campus is here to make it happen.

Take the first step and apply to NMSU Global Campus today.

References

1. “What Are the Average Salaries for Four-year College Graduates in the US?” USAFacts, 19 January 2024.

2. “Trends in College Pricing: Highlights.” College Board Research, accessed November 2024.

3. Hanson, Melanie. “Average Cost of College & Tuition.” Education Data Initiative, 28 May 2024.

4. “Average Cost of College Textbooks: Full Statistics.” BestColleges.com, 11 June 2024.

5. Hanson, Melanie. “Student Loan Debt Statistics.” Education Data Initiative, 15 July 2024.

6. Rivera, Heidi. “Scholarships and Grants for College: Facts and Statistics.” Bankrate, 31 January 2024.