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17 Secrets to Graduating College Debt-Free

Does getting a college degree without the burden of student loans seem like an impossible dream? You're not alone.

Each year, many students tackle the hurdle of funding their education without drowning in debt. Graduating from college debt-free might seem like a far-fetched dream, but it's entirely possible with the right strategies and planning.

This article will show some lesser-known secrets to help you achieve a debt-free college education. We've compiled 17 of the best ways to graduate college debt-free, using research, expert advice, and real-life success stories. So, get started with these steps early to avoid student debt and start your post-college life on solid financial ground.

1. CLEP Exams

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The College Level Exam Program, or CLEP exams, is a great way to get college credit for things you already know. You can take these standardized tests in any one of 36 subject areas, and if you earn a score of 50 or higher, you earn college credit. This allows you to skip having to take the actual course.

Taking and passing these tests can help you save on tuition and cut down on time in school since you need to complete fewer courses to graduate. The good news is that these tests are offered throughout the year, so you can find the best time to take them.

2. Use Work Study Programs

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Joining work-study programs allows students to earn money while gaining valuable experience in their field of choice. These jobs are often on campus and can provide a steady income to help offset the cost of tuition.

The drawback to this idea is that while it is part of your financial aid package, it is not going to pay for your tuition. There is a limit on the number of hours you work, and you typically earn minimum wage. Still, you get valuable work experience and some spending money to offset some expenses you will have.

Based on my award package, I worked 10 hours a week and was paid every two weeks. Again, it wasn't enough to cover tuition, but it was nice having some spending money.

3. Transfer Credits from Third Parties

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Third-party services like Sophia, Study.com, and DSST are game changers in higher education. In the past, you had to go to community college as a way to earn credits at a more affordable price. But not anymore.

With sites like Sophia, you can take college-level courses for under $100 a credit. Then, you transfer the credit to a traditional four-year college. Not only are these courses self-paced, but they are 100% online, making it easy for busy people to complete on their schedule.

4. Fill Out a FAFSA

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You should complete the Free Application for Federal Student Aid (FAFSA) every year to determine eligibility for federal grants, work-study opportunities, and loans. Even if you aren't sure if you qualify or think you don't, you still still apply because you never know if you will.

The qualification guidelines and income thresholds update each year. So, while you might not qualify this year, you might next year. And any money you can get for college is helpful.

5. Open a 529 Plan

529 College Savings Plan Form On Desk
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Consider putting your money into a 529 college savings plan for tax perks and flexible investment choices to cover upcoming education costs. To get the most benefit, you want to open and fund this account as early as possible. This will allow the money you invest to grow more.

The money you invest grows tax-free, and there is no tax or penalty when you use the money for qualified education expenses. Here's a bonus: thanks to the SECURE 2.0 Act, if you don't use all the money, you can roll some of it over to a Roth IRA, giving you a head start on your retirement savings.

6. Start Saving Early

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It's important to set aside money for college as soon as possible so it can compound into larger amounts. Consider opening a savings account specifically for college funds and making regular contributions to it. You could put birthday money or any other cash gifts you receive in the account.

You may want to put a portion of your allowance in as well as some money you earn once you get a job. While this tip might not pay for all your college costs, it will be a nice cushion covering some of it.

7. Attend Community College

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Starting at a community college with much lower tuition is a smart financial move. College credits are typically less expensive here, and when you are ready to move to a four-year school, you can transfer them.

The other benefit of community college is you can still live at home. With average room and board at private colleges costing $14,410 a year and $12,640 at public schools, avoiding this bill for two years can significantly reduce your overall cost of college.

8. Seek Out Scholarships

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There are many scholarships out there waiting to go to the right person, and they all aren't based on your grades. Some are for civic duty, being left-handed, belonging to a certain ethnic group, and more.

So don't make the mistake of thinking you don't qualify for any. The odds are that there are a couple you qualify for. Start by looking around your hometown at various organizations. Then speak to your school. Finally, search online to find more. Some sites do a good job of compiling opportunities and point you in the right direction to apply.

9. Go to a Public College

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Public colleges and universities often offer lower tuition rates compared to private institutions, especially for in-state students. According to a survey, the cost of a year of public tuition is $9,750 compared to $38,421 for a private college. Going to a state school can save you one hundred thousand dollars or more over the course of your education.

Many state schools even have satellite campuses in various counties where you can take classes before you head to the main campus. This can save you a lot of money on room and board.

10. Switch States

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Finally, if you are interested in attending a state school in a state where you don't reside, look into what it will take to become a resident. Usually, the requirements are not too cumbersome, and doing so can help you save thousands.

The easiest way to do this is to see if you have family members who live in said state. By moving in with them, you could more easily meet the residency requirement.

11. Attend Online College

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Another money-saving tip is to check out online colleges. These schools offer accredited degrees at a fraction of traditional university costs and offer learning options that can easily fit into your work schedule.

In some cases, you might be able to attend an online school for a couple of years and then transfer your credits to a traditional four-year college. But be sure to speak with the schools' admissions departments first to make sure your credits will transfer.

12. Apply for Grants

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Unlike loans, grants don't have to be paid back and are usually awarded based on financial need or academic merit. There are loads of grants out there from government agencies, private groups, and even schools themselves.

Your first step is to speak with the financial aid office at your college. Then, search online for government and private groups that offer grants. Because of the popularity of grants, you should make it a point to apply to as many as you can, as there is no guarantee you will be awarded one.

13. Work a Side Hustle

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Just because you are attending college doesn't mean you can't get involved in a side hustle, such as freelancing, tutoring, or gig economy jobs, to earn extra money while in school.

The benefit of a side hustle is that many allow you to make your own hours, so you can work fewer hours when you don't have a lot of free time and more hours when you do. If your side hustle is related to your major, it can be excellent work experience to add to your resume.

14. Join the Military

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The military offers various education benefits, including tuition assistance and the GI Bill, which can cover most or all of your college expenses. If you plan to enlist in the army after college, joining the ROTC program is an excellent way to help you pay for college as well.

Not only do you get help paying for college or room and board, but you also learn basic military skills, which are invaluable once you enlist.

15. Take AP Exams

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Taking Advanced Placement (AP) exams in high school allows you to earn college credits and advance more quickly through your degree program. These programs are similar to the CLEP exams listed earlier.

The biggest difference is that with AP exams, you take the test after completing a course. For those who enjoy self-paced studying, the CLEP exam option is the better choice. However, the end result of both is the same: to allow you to get college credit without taking the course in college.

16. Ask Your Employer to Pay for Tuition

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Some employers offer tuition reimbursement for employees studying degrees related to their job roles. Most require you to earn a certain grade and continue working for the company for a few years after completing your degree.

Many employers also limit the number of courses you can take per semester, meaning it may take longer to get your degree. Still, considering your tuition is completely paid for, it is well worth it. This is how I earned my master's degree and ended up paying very little out of pocket for it.

17. Study Abroad

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Many students opt to study abroad in countries where tuition fees are lower or nonexistent for international students. This can also be a great opportunity to immerse yourself in a different culture and gain valuable life experience.

You can also look for scholarship opportunities specifically for studying abroad, which can help cover some costs.

Author: Jon Dulin

Jon Dulin is a personal finance writer for 15 years. Jon has a Masters degree in finance and a certificate in financial planning. He also writes for the AP Wire and MSN.

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