How To Pay for College Without Financial Aid

Most students rely on financial aid to help pay for college. Undergraduate and graduate students received $256.7 billion in federal student aid during the 2023-24 academic year alone, according to the College Board. That works out to an average of $16,360 per undergraduate student and $28,420 per graduate student.

But not all college students can access federal financial aid — either because they don't qualify or because they didn't complete the FAFSA on time. The good news is that you can pay for college without financial aid using alternatives like private scholarships and grants. Understanding those options can help you make the best decisions for your education and budget.

Here's what you need to know about how to pay for college without federal financial aid.

Current private student loan rates

Why you might not receive financial aid

There are several reasons why you may not receive federal financial aid. To start, you must meet the Department of Education's (ED) eligibility requirements for financial aid. Some reasons applications are denied include:

• One or more of your student loans are in default.
• You haven't made satisfactory academic progress (e.g., your grades are too low or you haven't completed enough credits).
• Your immigration status has expired or been revoked.
• You're incarcerated.
• You've received more student loan or grant money than you were allowed.
• You don't have a high school diploma or recognized equivalent.
• You were guilty of a crime involving fraud to get federal student aid.
• You have property subject to a judgment lien for a debt owed to the government.

If you meet the ED's basic eligibility requirements, you may be considered ineligible for need-based financial aid if your family's income and assets are too high to qualify. Just remember that need-based financial aid is only one type of student aid, which means that even if your family has higher income and assets, you may still be eligible for other types of financial aid.

Additionally, some schools don't participate in federal student aid programs. If you attend one of these schools, you'll need to find other ways to pay for your education.

Another common reason for not receiving financial aid is failing to complete the Free Application for Federal Student Aid (FAFSA) on time. The FAFSA is used to apply for all types of federal aid and even some state- and school-based aid, and failing to fill it out on time could put you out of the running.

However, you may have more time to complete the FAFSA than you might think.

“The FAFSA deadlines are June 30 or the last day of classes, whichever comes first,” says Mark Kantrowitz, author of “How To Appeal for More College Financial Aid.”

“So, as long as you are still in school, you may be able to qualify for student loans and federal student aid retroactively,” he adds.

Keep in mind that some states have earlier FAFSA deadlines than the federal deadline, and each college's deadline for its own financial aid funds may be different from the federal deadline. But if you turned in an incomplete FAFSA or think you missed the deadline, you may have time to correct the error.

“Federal student aid is available for the current academic year through the end of the academic year,” says Kantrowitz. “Small amounts of financial aid, up to $200, may be available for a previous award year, and late disbursements may also be available for the current academic year in some circumstances,” he adds.

Apply for scholarships and merit aid

One of the best ways to pay for college without federal financial aid is to use scholarships, which are often merit-based. When you receive a scholarship, it's free aid that doesn't have to be repaid after graduation.

Since scholarships are typically merit-based, you may need to meet certain academic or other requirements to qualify. But many scholarships are looking to help students with a wide variety of different talents beyond academic merit and athletic skill.

There are plenty of websites that compile scholarship opportunities from all over the country, and there are literally thousands of scholarships to choose from. Some of the most common online search tools include:

• Fastweb: This site allows you to create a profile and will then send you personalized scholarship matches based on your interests and strengths.
• Going Merry: Going Merry has an app that allows you to find, apply for, and track your scholarships from your mobile device.
• BigFuture by the College Board: BigFuture has a searchable database of over 33,000 scholarships.

Use savings or a 529 plan

Tapping into money you have set aside will generally be a better option than going into debt for college. Several savings options are available to you. Here's how each one works:

• Savings: If you have money set aside in savings, using some for your college education can keep you from having to take out student loans. Just make sure you don't deplete your savings so that you have some money in the event of an emergency.
• Custodial savings account: If your parents set up a custodial savings account and named you as the beneficiary, you can make tax-free withdrawals to cover qualifying educational expenses. Since this account was set up specifically for this purpose, it's smart to use it for your education.
• 529 account: Money invested in a 529 plan grows tax-free and can be withdrawn tax-free for qualifying educational expenses. Just note that if you don't use the money in your 529 account for eligible education expenses, you'll pay a tax penalty.

Further Reading: How To Pay for College: A Comprehensive Guide

Look into college tuition payment plans

You might expect that your tuition payment is due all at once, but many colleges offer payment plans at no extra cost.

“Ask your college financial aid office if you can take advantage of a tuition installment plan,” says Kantrowitz. “These plans let you spread out the cost in monthly installments.”

In most cases, colleges don't charge interest for tuition payment plans, which makes this a helpful option for spreading your costs out over time.

“Choose paying in installments instead of long-term debt if you can,” advises Kantrowitz.

Consider parent contributions or employer tuition assistance

Your parents may be able to help you with college expenses. Depending on their finances, they could help you directly by paying a portion of your tuition costs. Alternatively, your parents may also be able to help you by taking out a parent PLUS loan or private parent loan. Just remember that the parent PLUS loan also requires your parents to fill out the FAFSA.

But your parents aren't the only ones who might be able to help you with tuition. Your employer might also offer some assistance or reimbursement.

“You may be able to access employer tuition assistance, typically up to $5,250 per year, tax-free,” says Kantrowitz. This all depends on whether your employer offers this option.

Many major employers do offer tuition assistance programs, including Walmart, Amazon, Starbucks, Home Depot, and Chipotle.

Explore alternative or lower-cost paths

Finding an alternative to the traditional college path can help you lower your costs. Some helpful strategies might include:

• Community college: Attending a public community college in the 2023-24 academic year costs an average of $3,990, according to the American Association of Community Colleges. Meanwhile, attending a public four-year university in 2023-24 costs an average of $11,260.
• Transfer to a four-year institution: If you'd like to graduate from a traditional four-year college, consider completing your prerequisites at community college for the lower cost before transferring to a four-year school to finish your degree.
• Trade school: You can typically graduate from a trade school in as little as 6 months, and very few programs take longer than 2 years. The shortened programs and direct path to a job make this a much less expensive option.
• Learn remotely or commute: You can cut some major college expenses by living off campus. Consider either taking classes online or commuting to save money by living at home.

Use private student loans

If you aren't eligible for federal student aid or have maxed it out and need more funds, private student loans could be a suitable option. Private student loans come from banks, credit unions, and other lending institutions, which means private lenders don't require the FAFSA to apply. Additionally, there's no specific deadline for private student loan applications.

However, private loans require a credit check, while most federal loans don't. And unlike federal student loans, students may also need to meet minimum income requirements for a private loan, which means many borrowers won't qualify for a private loan without a cosigner. Private lenders also tend to impose stricter repayment terms compared to federal loans, and interest rates are based on the borrower's creditworthiness.

While private student loans may be a helpful way to “fill the gaps” in paying for your schooling, they're often an expensive source of funding and shouldn't make up a major portion of your financial plan.