9 Unique Ways to Pay for College Before You Borrow

The best way to pay for college is with money you never have to pay back. That means grants, scholarships, work, and help from an employer or a 529 plan, stacked up before you take a single loan.

Some of these are well known and some fly under the radar. All nine below are real, and most of them start with one free form.

1. File the FAFSA before anything else

The Free Application for Federal Student Aid (FAFSA) is how you get considered for federal grants, work-study and federal student loans. States and colleges also use it to hand out their own grants and scholarships, so skipping it can cost you money you’d never even hear about.

The biggest prize for many students is the Pell Grant, which doesn’t have to be repaid. The maximum is $7,395 for the 2026-27 award year. You have to file again every year you’re in school.

Watch the dates. The federal deadline is generous, but states and schools set their own, often much earlier, and some state money is awarded until it runs out. File as early as you can.

Next stepNew to federal loans? Our guide on how to apply for a Stafford (Direct) loan walks through the whole process.

2. Take a work-study job

Federal Work-Study gives part-time jobs to students with financial need, on or off campus. You’ll earn at least the federal minimum wage, and your school has to pay you at least once a month.

The jobs are built around your class schedule, and when possible they’re tied to community service or your field of study. Off-campus jobs are usually with a nonprofit or a public agency.

The catch: funds are limited and your total award caps how much you can earn. Apply for aid early, then ask your financial aid office how to find an open position.

3. Apply for scholarships, the free way

Scholarships are gifts, and there are thousands of them from schools, employers, nonprofits, community groups and professional associations. Some cover full tuition. Plenty are a few hundred bucks, which is still a few hundred bucks you don’t borrow.

Start with your college’s financial aid office, since its own awards have a smaller pool of applicants. Then search the U.S. Department of Labor’s free Scholarship Finder, and check local groups like community foundations, religious organizations and businesses near home.

4. Get your employer to pay

If you work, ask HR whether the company has an educational assistance program. Under federal tax rules, your employer can pay up to $5,250 a year toward your education without it counting as taxable income to you (the cap is set to rise with inflation in later years). Anything above that generally shows up as wages.

The same $5,250 can also go toward paying down student loans you took out for your own education, and that part no longer has an expiration date. The employer needs a written plan for it to work, so ask for the details before you count on it.

5. Use a 529 plan for more than tuition

A 529 plan grows tax-free when the money goes to qualified education expenses. Per IRS Publication 970, that covers more than people think:

• Tuition, fees, books, supplies and required equipment, plus computers and internet access
• Housing and food, if you’re enrolled at least half time (capped at your school’s allowance or its actual dorm charge)
• Fees, books and supplies for a registered apprenticeship program
• Up to $10,000 over your lifetime toward principal or interest on your student loans (siblings get their own $10,000)

So if grandparents ask what to give you, a 529 contribution is a pretty good answer.

6. Look at schools that don’t charge tuition

They exist, and they’re not scams. Berea College in Kentucky says it funds 100% of tuition, housing, food and fees for every student, without loans.

The military service academies are another route. At West Point, tuition, room and board are covered, and cadets get a salary. In exchange, graduates serve as Army officers for at least five years on active duty, plus three more in the reserves.

Both are competitive, and the academies come with a real commitment. But if either fits you, nothing beats graduating owing nothing.

7. Earn money on the side

A flexible side gig can cover books, gas and groceries so your loans don’t have to. Tutoring, pet sitting, delivery and freelance design all fit around a class schedule.

Our guide on making money as a broke college student has ideas that work with a student schedule, and our list of gig economy jobs covers the app-based options.

For apps that pay you for sign-ups, ReferralWallet and beermoney.co both keep running lists of current offers, and Gigs Done Right covers which gig apps are worth your time.

8. Cut your housing bill

Housing and food can cost as much as tuition. At one Virginia public university, the school’s yearly budget for an in-state student on campus was $34,900, and an in-state student living at home whose family covered food and housing would pay about $14,000 less.

Our guide to where to live in college breaks down the numbers and shows you how to look up your own school’s budgets.

9. Don’t pay full price for textbooks

Before you buy anything new, check whether the book is on reserve at the library, whether a used or older edition will do, and whether you can rent it or get the digital version. Students who took the class last term are often happy to sell their copy.

Email the professor before the term starts if you’re not sure which edition you need. It’s a two-minute message that can save you real money.

If you still need to borrow

After all of the above, a loan can still make sense. Just do it in the right order.

Federal Direct Loans come first. For loans first disbursed July 1, 2026 to June 30, 2027, the undergraduate rate is 6.52%, fixed for the life of the loan, and federal loans come with income-driven repayment and forgiveness options private loans don’t have. And you can accept less than your school offers and ask for more later if you need it.

Only after federal aid runs out should you look at private student loans.

Next stepSee what a balance will cost you after graduation with our student loan payoff calculator.