I Graduated From College Debt-Free — Here’s How

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Graduating from college debt-free is more realistic than you think.

I’m a first-generation college student from the rural Outer Banks of North Carolina and in 2022, I graduated debt-free from the University of North Carolina at Chapel Hill with bachelor’s degrees in journalism and psychology. To do so, I used a variety of methods, including the financial aid my institution offered for low-income students.

Even though college costs are rising and financial aid like the Pell Grant has stagnated for a few years now, more colleges are giving students opportunities to attend tuition-free through programs like the one I attended. Over 200 colleges and universities in more than 40 states offer qualifying students free tuition and, in some cases, a free education.

Check out how I graduated debt-free — and how you can too.

More than 42 million Americans owed over a total of $1.6 trillion in student debt as of 2025, and not paying back loans have led many to damaged credit and other financial hardships.

Not everyone incurs a lifetime of debt to get a degree. Almost half (45%) of public university students graduate without any debt and 78% graduate owing less than $30,000, according to the Association of Public and Land-Grant Universities.

Your first step to graduating debt-free is completing the Free Application for Federal Student Aid (FAFSA) or your state’s financial aid application if you do not qualify for federal student aid.

You should also look for scholarships and grants and, if needed, work opportunities. We’ll go into all these options (and more) below.

As a junior in high school with parents who never went to college, I didn’t know which college best suited me. Luckily, I had college ambassadors at my rural high school who told me about the Carolina Covenant program for students from families at or below 200% of the poverty guideline. It became one of the biggest reasons I applied to UNC Chapel Hill since I knew my parents couldn’t realistically help me pay for much of college.

A year after I graduated debt-free, I built the largest list of free-tuition colleges we could find so you can have the chance to do the same.

More than 200 colleges spanning nearly every state offer free tuition to students with financial need, which is demonstrated through the FAFSA. Some may require you to be an in-state student, with others covering tuition for students from anywhere in the country.

Some of the top schools in the country — such as Yale and MIT— have fairly high income thresholds for financial aid, and will sometimes cover tuition for students from families making less than $200,000 per year. Others will go even further by covering all college expenses for students meeting certain financial needs.

While tuition prices might be rising across the board, there are still significant differences between private and public universities.

According to the National Center for Education Statistics (NCES), the average in-state tuition at a public four-year school was $9,750 for the 2022-23 school year — $24,498 less than at private four-year schools and $18,547 less than out-of-state public schools.

This is why I mainly applied to public schools and just one in-state private school. Not only do public state schools prioritize enrolling in-state students, but they are also more likely to offer tuition-free benefits to students with financial need.

Community college is a great way to save money before going to a four-year college for a bachelor’s degree. Friends of mine who attended community college first saved on transportation and housing by living at home and taking a mix of online and in-person classes.

But the savings don’t end there. The average tuition at public two-year schools in 2022-23 was $4,000, according to NCES — about $5,000 less than tuition at a public four-year institution.

On top of that, accredited community colleges also qualify for financial aid through the FAFSA. Similar to some four-year colleges, you might be able to go to community college for free in at least 34 states if you’re pursuing a high-demand degree or certificate.

One of the best ways I saved money for college was through dual-enrollment classes in high school. My local community college offered free online courses that counted as both high school and undergraduate college credit and were guaranteed to transfer to in-state public colleges and universities. I transferred in a little over a semester’s worth of credits, while others in my class earned an associate degree through this program.

My high school offered only a handful of Advanced Placement (AP) classes when I attended, so these courses were the best way for me to get nearly a year-and-a-half ahead in college credits. These courses were also online and quicker than my traditional AP classes.

Ask your high school counselor if any local colleges offer dual-enrollment programs in partnership with your school. Students in these programs often pay half the cost of tuition (or less) for these classes.

Attending college online might save you some money if you choose an affordable online program. Some schools or programs waive out-of-state tuition fees.

Online tuition might also be cheaper than attending in-person classes. For example, online tuition at the University of Florida is $129 per credit for in-state undergraduates while on-campus classes cost $213 per credit for Florida residents.

Some online colleges like George Mason University offer scholarships you may qualify for if you’re a veteran or an active military member on top of military financial aid benefits you may automatically qualify for.

Savings accounts designed for academic expenses, such as 529 plans, give students and their parents opportunities to help people set aside future tuition money. If you’re over 18 years old and planning to go to college for the first time or return, you can open a 529 plan. There are two types of 529 plans: prepaid tuition plans and college savings plans. Every state supports at least one of these options:

Scholarships are powerful tools for graduating debt-free.

Scholarships are a form of financial aid that you don’t have to pay back, and that are typically awarded based on merit instead of need. Scholarships are awarded to students who meet certain requirements around academics, demographics, and extracurricular activities. In my case, I aimed to apply for scholarships that highlighted my volunteer work with my church and academics.

Searching for scholarships can be challenging and overwhelming, so be sure to keep track of the ones you’re applying for and talk with someone who can help you apply. Try looking online for local scholarships and national scholarships through websites like the College Board, ScholarshipOwl, and Scholarships.com.

BestColleges periodically updates popular scholarship opportunities for women, Black students, active military and veterans, Hispanic and Latino/a students, historically Black college and university students, and students with disabilities.

As an undergraduate student, I never directly applied for any grants. But I still received them through UNC Chapel Hill’s financial aid package, thanks to the FAFSA.

College grants are a little different from scholarships but are still free financial aid. However, unlike a scholarship, accepting grants means agreeing to a particular set of conditions, like working in a high-need area after graduation.

For example, students pursuing a teaching degree can qualify for the Teacher Education Assistance for College and Higher Education (TEACH) Grant, which provides up to $4,000 per year for undergraduate and graduate students who agree to teach a high-need subject in a school that serves low-income students for at least four years within eight years of graduation.

If you’re completing a non-teaching undergraduate degree, you may not need to heavily research grants, since many from your school may automatically apply to you if you filled out the FAFSA.

Work-study programs typically involve doing part-time jobs on campus, be it at the library, campus gardens, or research labs, among other settings. Work-study is a federally funded program offered in your financial aid package to help you pay for your education. Anyone with demonstrable financial need is eligible.

Typically, work-study employers are understanding of your academic workload and will allow you to adjust your schedule to your study needs. Check with your school’s financial aid office to see if your school offers work-study positions and how you can apply. Sometimes, even off-campus jobs have agreements with colleges, so be sure to check with your financial aid office to see if the job you’re interested in is eligible.

I chose not to work through college to focus on my studies and prioritize my extracurricular activities, but not everyone has that option.

While similar to work-study, a traditional job might earn you more money. The downside is that it might not be as flexible. It’s important to find the right balance when you work and study, prioritizing your studies when you can.

You could also prioritize working full-time in the summer when classes are out so you can save up for when the semester starts again.

If you’re an adult learner starting or going back to college, your employer may be able to help you pay for college through tuition reimbursement. Employers with a tuition reimbursement program pay for some or all of an employee’s tuition for relevant coursework or training.

Depending on the company, part- and full-time employees may be eligible to apply. Most companies ask that the field of study be related to your job at the company and some might require you to commit to staying with the company for a certain period of time.

Some people I know joined the military after high school to help pay for their college degrees. As an active military or veteran student, you have access to exclusive financial assistance like the Post-9/11 G.I. Bill and other grants that benefit you or your family members. These military benefits also come with service commitments you must follow to qualify for aid.

Some schools also offer scholarships for military members.

The most common prior learning assessments (PLAs) are AP exams, which are advanced classes taken during high school that lead to college credit if you score high enough on the AP exams. I took two AP classes in high school and though I didn’t meet the required score, this is a pathway for many students to earn college credit affordably.

At many high schools, the only cost associated with an AP class is the $92 exam fee, which may be waived for students who demonstrate financial need.

If you’re an adult learner, other types of PLAs could get you college credit for past work experience, military training, and certificates.

Being a resident advisor (RA) can save you money on housing and meals. You live in dorms with fellow students, making sure they follow the dorm rules, all while fostering a fun and welcoming environment.

The job isn’t for everyone, but a few of my friends who worked as RAs loved the experience and the benefits that came with it. Most RA applications at colleges are competitive and require students to apply up to a year in advance.

Most colleges offer summer and winter classes that are condensed into a few weeks but grant the same college credit as typical coursework. Since these are accelerated, taking a few at a time can feel like the work of a traditional full-time semester.

After my sophomore year of college, I decided to take full advantage of this and took online classes during the summer. UNC covered my classes and would deposit a small living stipend so I could afford housing and other living expenses. These courses allowed me to finish my class requirements quicker.

Most universities allow you to “overload” your semester by taking more than the typical 18 credits per semester. Overloading your schedule will help you graduate faster but can be very stressful and leave little time for socialization (and sleep) since you’ll be balancing five or more classes at a time. If you choose this option, definitely don’t hold a job at the same time since all your time should be spent on classes and coursework.

Textbooks can be expensive, costing you around $1,212 per academic year, especially if you buy them new. So I used UNC Chapel Hill’s online bookstore to rent textbooks instead of buying them new. I would rent heavily discounted books for the semester and then return them after or buy them outright. I also used Amazon to buy discounted books or even used online e-textbooks my professors recommended.

You can also head to Facebook Marketplace or community group messaging platforms to find students selling their old textbooks. If you know anyone who took the class before you, ask them for tips on how to save on class materials.

Other than textbooks, some classes may require access codes to online learning platforms that you won’t be able to find elsewhere.

If you’re a traditional 18-year old student right out of high school, receiving a lump sum financial aid direct deposit can be overwhelming, and budgeting it sounds even worse. I was tempted to overspend since it felt like I had so much money to spend right away. I had to remember that without a job, this money would need to carry me throughout the rest of my semester.

My first semester I budgeted for a limited meal plan since I knew I would not have the time nor patience to cook in a dorm and worry about a grocery budget. This left me with class expenses, transportation, and fun money.

Don’t expect to get it right on the first try, I definitely didn’t. I spent way too much at the Subway down the hill and 2 a.m. Insomnia Cookie runs. It can take a few semesters to get into a rhythm.

And, if you need help budgeting, my colleagues and I at BestColleges made a full guide to student budgeting that includes sample plans you can follow.

A few quick pointers include:

Disclaimer: The information provided on this website does not, and is not intended to, constitute professional financial advice; instead, all information, content, and materials available on this site are for general informational purposes only. Readers of this website should contact a professional advisor before making decisions about financial issues.