How To Pay for College Without Financial Aid

Undergraduate and graduate students received $256.7 billion in federal financial aid in the 2023-24 school year, according to the College Board. Unfortunately, financial aid isn't available to everyone, whether it's because you didn't complete your FAFSA or you simply don't qualify.

Luckily, there are other options available, including private scholarships and grants, as well as private student loans. If you're facing the task of paying for college without financial aid, it's important to understand your options and which best fit your specific circumstances.

Why financial aid might not be available

There are many reasons why financial aid may not be available when you're paying for college. A common reason need-based aid won't be available is if your family's income and assets are too high to qualify. However, not all types of aid are need-based. Even if your family has income and assets sufficient to cover your entire price tag, aid may still be available.

Another reason financial aid may not be available is if you failed to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is used to qualify 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 for financial aid.

Finally, you may be denied financial aid if you no longer meet the Department of Education's (ED) eligibility requirements. According to the ED, here are some reasons applications are denied:

• 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• Your immigration status has expired or been revoked.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.
• You were guilty of a crime involving fraud to get federal student aid.
• You have property subject to a judgment lien from debt owed to the government.

If you don't qualify for financial aid for any reason, it's important to determine exactly how much you'll owe so you can start preparing. Your school should provide you with your cost of attendance (COA), which includes your tuition and fees, books and course materials, room and board, and more. You can learn your COA by contacting your school's bursar's office.

Scholarships and grants for students without financial aid

One of the best ways to pay for college without financial aid is to use scholarships and grants. Scholarships are often merit-based, while grants are typically need-based. The key thing that both have in common is they're both free aid — you won't have to repay them after leaving school.

There are plenty of websites that compile scholarship opportunities from all over the country. However, competition for these scholarships tends to be high since there are so many students applying.

“One highly effective strategy to help pay for college is to focus on applying for local scholarships specific to your city, county, or state,” says Shaan Patel, founder of Prep Expert, a company that helps students improve their SAT and ACT scores. “These scholarships often have far fewer applicants compared to national scholarships, which significantly increases your chances of winning.”

To find these opportunities, Patel recommends researching scholarships from local businesses, community foundations, civic organizations, and other resources.

Another way to find scholarships and grants is to visit your high school guidance counselor's office, as they'll often have a pulse on scholarship opportunities you may be eligible for. You can also contact your college's financial aid office, visit your state's education department website, and do an online search for other local and national scholarships.

Keep in mind that because scholarships are often merit-based, you may need to meet certain academic or athletic requirements to qualify.

“When I work with clients, I encourage them to take a personal inventory of their achievements, experiences, and interests, what makes them stand out, and what makes them unique,” says education consultant JoNataye Prather.

“Then, you want to gather your essential documents, such as your high school and college transcripts, standardized testing scores, recommendation letters, and even a personal statement.”

Having these on hand will make it easier to apply for multiple scholarships in a timely manner.

Private student loan options

Many students use federal student loans to pay for college. But if you aren't eligible for those, or have maxed out your federal loan options, then private student loans could be a suitable alternative.

Private student loans come from private banks, credit unions, and other lending institutions. But these loans do come with downsides.

“Unlike federal student loans, which in most cases do not require a credit check, private student loans always do,” says Bethany Hubert, a financial aid specialist at Going Merry by Earnest. “Because most students don't have sufficient credit history to get approved for a private student loan, they have to apply with a cosigner.”

Private loans have other differences from federal loans. For example, they don't have standard interest rates. Instead, your rate is based on your credit, loan amount, and other factors.

Additionally, private loans may have stricter repayment terms. You might be required to make payments while you're in school (though that's not always the case), and likely won't have access to the same relief opportunities that federal loans offer, including generous forbearance, deferment, and loan forgiveness opportunities.

When comparing private loans, you can shop with several lenders individually or use an online loan marketplace to see multiple options in one place. Make sure to compare factors like interest rates, repayment requirements, loan fees, grace periods, loan limits, deferment options, and more. Additionally, if you don't have good credit, consider asking a parent or another loved one to cosign your loan to improve your chances of approval and potentially help you land a better interest rate.

Current private student loan rates

Alternative ways to pay for college

If you don't have access to financial aid, there are other options besides scholarships, grants, and private student loans. Here are some to consider:

• Employer tuition reimbursement programs: Some employers, like Chipotle, offer tuition reimbursement programs to attract workers and encourage them to pursue higher education. Companies can offer up to $5,250 per employee per year, tax-free. Check with your employer to find out what it offers.
• Personal savings or 529 savings plans: If you're planning to attend college, regardless of whether you think you'll have access to financial aid, it's a good idea to build savings ahead of time. You can do this in a standard savings account or a 529 plan, which offers certain tax advantages.
• Part-time job income: Holding a part-time job (or even a full-time job, if you can manage it) before and during college can help you raise additional funds to cover your tuition. Though you won't be eligible for work-study jobs without financial aid, there's no shortage of other job options to choose from, including local in-person jobs, remote jobs, gig work, and more.
• Crowdfunding for education expenses: Crowdfunding has become a popular tool to raise money for everything from medical expenses to new business costs. While not everyone will feel comfortable crowdfunding for their college expenses, it's certainly an option.

Tips to reduce college costs

If you aren't eligible for financial aid, you may want to find ways to reduce your college costs altogether to make them more manageable.

One way to reduce your college costs is to choose your school strategically. In-state public universities typically have lower tuition than private or out-of-state schools. You may also consider spending two years at a community college before transferring to a four-year school to save money on general education credits.

According to Prather, you can also reduce your college costs by completing some of your credits before you even start paying tuition.

“One tip is, while you're in high school, take AP classes, advanced courses, or earn college credit,” says Prather. “Often, students can graduate high school with an associate degree [or at least some college credits], thus reducing their time attending a four-year institution.”

Finally, look for other ways you can reduce your spending while you're in school. For example, living at home with your parents can help you save a lot on room and board. Additionally, renting your textbooks and equipment or buying them used can be significantly cheaper than buying brand new.