After two years of diligent work, I was able to graduate debt free with a Master’s degree in Business Administration. As exciting as this is, there was only one thing that concerned me before I started the program – the price tag! This 2 year MBA program was going to cost me around $45,000 to complete. 🙁
Luckily, I completed the program without incurring ANY additional student loan debt. This was quite a feat considering the fact that the average student loan debt for a new graduate is in the neighborhood of $37,000!
Rest assured, if I was able to do this that means you can graduate debt free as well!
Let me explain how:
The only reason that I was able to complete my graduate degree without any debt is because I was determined not to repeat the same mistakes that I made during my undergraduate degree. I graduated from college in 2010 with A LOT of student loan debt, just like many of my classmates.
If I could do it all over again, these are the areas I would focus on to graduate debt free (they are also the areas I focused on to get my MBA):
Scholarships & Military Service
*Click on any of the above links to skip straight to that section*
1. College Selection
Selecting the right college is the first step to take if you want to graduate debt free. If you don’t learn anything else in this article, I really want you to grasp this concept:
#SchoolChoiceMatters
The tuition and fees that you’ll pay will vary drastically depending on the type of university someone decides to attend. During this selection process, we will assume that you aren’t being offered any scholarships and will be paying for the degree yourself.
In general, here are some things to consider:
Look for schools that offer fixed or in-state tuition rates.
I understand that you may be itching to get out of your home state, but keep in mind that tuition costs for non-residents at many schools can be up to 3 TIMES as much as the rates for residents! You can see an example of this in the picture below:
*Image courtesy of NC State University
AVOID PRIVATE SCHOOLS.
Most people cannot actually afford them, and the “distinction” or exclusivity is not always worth the increased price you’ll pay to attend.
Speaking of distinction, research each school’s reputation. There are many reputable schools that are renowned for providing quality education, even if that aren’t the most well known. I would suggest researching various universities, before you apply, to find our what their reputations are. This will prevent future employers or graduate schools from questioning the quality of education you’ve paid for earned.
Consider schools that accept prior college credits.
Highschool students can complete Advanced Placement courses to earn college credit. Highschool graduates can study for and take College-Level Examination Program (CLEP) exams to receive college credit without taking an actual class. You can also complete classes at your local community college at a reduced rate and then transfer to a traditional 4-year university to complete the rest of your degree. Doing any of these things will cut down the remaining classes you’ll need for graduation and will decrease the end amount you’ll eventually pay.
2. Work, Work, Work, Work, Work
If you don’t have any scholarships coming your way, and you don’t want to take out any student loans, you will need to:
A. Beg your family for money.
B. Work. Like. Hell.
Most of you reading this will choose option B because you’re badasses. My MBA program gives students 6 years to complete their degree. I finished it in 2 years while working full-time.
One of the best ways to fund your education is to actually make the money you spend on your degree. You’ll be debt free when you graduate and you will have a deep appreciation for the hard work you’ve put in.
At this point, if you’ve carefully selected a low-cost college to attend, you may not need a typical 9 – 5 job to make enough to pay for each semester.
Here are some alternatives to consider:
- Become a tutor in a subject you’re really good at
- Apply for work-study jobs at your university
- Find part-time jobs that provide decent wages
- Apply for paid internships in your chosen field of study
- Do paid freelance work in your chosen field (if possible)
- Drive for ride sharing services like Uber/Lyft
- Babysit, dog sit, house sit, etc.
This list is NOT all-encompassing. There are many ways to make money in college and graduate debt free, you just have to get creative!
3. Scholarships & Company Benefits
Last on the list, but certainly not least are scholarships and company benefits. These options are also commonly known as:
FREE MONEY!!!
Scholarships & Grants
These can be a great way to pay for most, if not all, of your degree. Once awarded, these funds are put towards your university costs and you won’t be responsible for paying them back…EVER!
Sounds awesome right?
The only thing you have to do is research and apply. START EARLY and apply to as many scholarships as you can. There are millions of scholarships out there based on different criteria: merit, fields of study, essay competitions, university choice, and even specific last names or other personal characteristics.
Billions of dollars in scholarships and grants are waiting to be applied for. You will have to be diligent in putting forth the effort to claim your share! Some scholarships and grants are based on financial need and will require you to fill out the Free Application for Student Aid (FAFSA). You can use sites like Scholly.com to find awards that you qualify for or just do a quick Google search for “scholarships“.
Military service
This might not be the best option for everyone, but for those who serve or have served there are specific entitlements that you can take advantage of to further your education:
Tuition Assistance – Provides up to $4,500 per year for active military members to start, continue, or complete their degree. You can use this money to complete one degree at each scholastic level: Associates, Baccalaureate, Masters, and Doctoral.
GI Bill – Provides up to 36 months of education benefits for military members who serve on active duty for over 90 consecutive days. It is also available for Veterans who were honorably discharged or discharged wtih a service-connected disability after 30 days of service.
As an active duty military member, I used a combination of the GI Bill, TA, and about $10,000 of my own money to graduate debt free. I took this route because TA would not provide enough money to cover the cost of the MBA program in the amount of time it would take to complete. By completing my program so quickly (and using some of my own money) I only used HALF of my GI Bill benefits. This means that the remaining benefits can be transferred to Dannie if she ever wants to further her studies. Hooray for another debt free degree in the future!!!
Company Benefits & Incentives
It is becoming more and more common for companies to offer some type of tuition reimbursement to their employees. Approximately 60% of employers provide this type of benefit! Companies like AT&T, Home Depot, Wells Fargo & even Starbucks encourage continuing your education. If you haven’t done so already, it might be time to check if your employer provides this type of benefit.
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There you have it folks, 3 tips that can certainly be used to help you graduate debt free! I’m no expert, but I did all of these things to finish my MBA with no debt. Hopefully, you’ll be able to achieve similar success or atleast share this with someone that might benefit from the information!
$tay Wealthy Friends 🤑
— DJ
