According to Nerd Wallet, the average student debt is $71,000 for graduate students in 2020.
I am unsure about you, but that is a lot of money for me.
I was worried student loans would hold me back financially in the future. I made a goal to graduate debt-free in accounting, and I did it!
You can do it too! Here are 7 ways to graduate debt-free in accounting.
1. Scholarships
Scholarships are a financial reward and a great way to pay for college. I was surprised to find out how many accounting scholarships there are out there. I wish I had known of them sooner.
Here is a list of places you can find scholarships:
- College of your choice
- State’s Society of certified public accountants
- National accounting organizations
- Local scholarships in your area
This Way to CPA has an impressive list of over 180 accounting scholarships.
2. Grants
Grants are money that doesn’t have to be paid back and are awarded to students with financial needs. It is available to both undergraduate and graduate students.
Here is a list of places that may offer grants:
- Federal government
- State government
- College of your choice
Most grants require you to fill out the Free Application for Federal Student Aid (FASFA) form to determine eligibility. After submitting the application, the university I attended would determine the grants I qualified for.
Pro tip: Fill out your FASFA as early as possible. I was able to get state grants by having my FASFA filled out by March to meet the reward deadline.
3. Employer tuition reimbursement
Another great resource is to have your employer pay for your education or find one that does.
If you are currently working, check out the company’s handbook or ask your supervisor if they offer a program. Your benefits package may already offer it.
If you are looking for a job, you can aim to find one that offers tuition reimbursement. Government positions or full-time positions on campus are a great place to start. Go Grad has a great list of companies that offer tuition reimbursement.
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4. Make monthly payments
Some universities offer an option to make payments while you are taking the course. Give the finance office a call to see what options they have.
Here is how to determine if you can make the monthly payments:
- Add up the class’s total costs: tuition, fees, parking passes, books, or any other expenses you may expect.
- Subtract any financial assistance you receive from the total: scholarships, grants, work reimbursement, or savings.
- Divide the remaining cost of the course by the length of the class.
- Check your budget to determine if you have room to make monthly payments.
You can use this calculation to determine how many classes fit your budget for the semester.
There may be a small fee to enroll in the payment program. But it’s less than the interest that comes with a monthly loan payment.
5. Save ahead
Saving ahead of time could ease financial stress before starting school. To make it easy, direct deposit it into a separate bank account allocated for school.
Any amount you can put aside is essential. You could use it to cover smaller expenses such as books, parking passes, or fees, to name a few. If you can put more away, make it a goal to save to pay for an entire class or even a semester.
6. Military benefits and resources
There are excellent resources that may be available to you if you are a military affiliate:
- GI Bill
- Local scholarships at military bases
- The Military Tuition Assistance (TA) program
Grand Canyon University offers a special rate per credit hour for military affiliates. It costs $250 per credit hour for an undergraduate and $400 per credit hour for graduate students in 2020. If you are on active duty and planning on using the TA program, this is a great option.
Key spouses run the Thrift Store at the Air Force base in my area and provide scholarships for dependents.
*You might be interested in Four Career Resources for Military Spouse Accountants
7. Take longer to finish
You may still fall short even after receiving financial assistance and making room in your budget.
Consider taking the number of courses you can pay for without taking out loans. Just keep in mind that you need to take at least two classes to qualify for federal financial aid.
It may extend your graduation date but consider the benefit of graduating debt-free. You can also take a bigger load of classes later if your financial situation changes to graduate in time.
How have I graduated debt-free?
My master’s degree took 18 months to complete, and I have the breakdown of how exactly I paid for it.
Here is how I paid $22,000 in tuition plus the cost of books, parking passes, and fees:
- Accounting scholarships for $10,500
- Grants $4,000
- Payment plans $4,400
- Saved $10,000
The scholarships were from the Colorado Society of Certified Accountants and Accounting & Financial Women’s Alliance Denver Chapter. I qualified for the grants offered by the university I attended.
I couldn’t use the grants or scholarships for my summer courses. So, I worked part-time at a CPA firm and made monthly payments for the two summers I took classes.
My husband and I lived on one income. So, I saved almost all my income toward paying for school. I ended up saving more than I needed. I used it for a 10-day study abroad trip to Paris and London for school credit.
Being financially prepared allowed me to go to Europe and graduate debt-free.
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You can graduate debt-free!
Graduating debt-free is an achievable goal, especially by combining these different options. The sooner you start planning, the quicker you will achieve it.
Grab my free time-blocking planner to help you balance your busy schedule.