How to Save Money as a College Student

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The last thing you probably want to think about is how to save money as a college student, however, it’s necessary to minimize debt and establish good financial habits early to get ahead in your financial and professional life.

The more debt you rack up in college, the longer it will take for you to truly start living. It will take longer to realize your full paycheck, save for a house, save for retirement, etc. If you’re not careful, the debt you accumulate in college can hold you hostage for the rest of your life.

To help you avoid this bleak outlook, please see below a list of ways you can save money on college.

Table of Contents

Complete the Free Application for Federal Student Aid (FAFSA)

No matter how much money your family makes, you should fill out the Free Application for Federal Student Aid (FAFSA). Even if you make too much income to qualify for federal grants, the FAFSA also qualifies you for other kinds of federal, state, and institutional grants and scholarships. This includes merit scholarships at some universities.

For more information on how to find scholarship opportunities, please read: Finding and Applying for Scholarships from studentaid.gov

In addition to financial aid eligibility, a FAFSA is required to apply for federal student loans. These loans are both low-interest and forgivable, and much more attractive than their private counterparts. While avoiding student loans altogether is ideal, if you must take out loans, federal student loans are the way to go.

Keep Up Good Grades – Merit Based Scholarships

If you’ve submitted your FAFSA and aren’t eligible for other need-based grant and scholarship funding, you may qualify for merit aid at your university of choice. Merit scholarships are typically awarded to students who are high-performers in academics, athletics, arts, etc.

Universities often offer merit scholarships as a recruitment and retention tool, so if you were a high-performer in high school, you may want to consider offers from multiple schools. If you weren’t exceptional in high school, performing at the top of your college class for the first 6 months to a year may qualify you for a merit scholarship.

While my wife was in nursing college, she made a perfect 4.0 for her first year and was automatically awarded a scholarship for her next semester. She continued to make high marks and received scholarship stipends for the duration of her degree program.

Expedite Your Degree

This should come as no surprise to anyone; the fewer semesters it takes you to finish college, the less money you’ll likely pay on college expenses. Between tuition, housing, a car, and other living expenses, its just that much more each semester.

This doesn’t mean overload yourself and let your grades suffer. Ultimately, you’ll need good grades to land that first job and the better the grades and extracurricular activities, the more and higher paying opportunities you’ll have access to early on.

Go to a More Affordable College

Probably the simplest way to save money as a college student is to choose a more affordable college.

Technical College, Community College & 2+2 Programs

Many areas have access to technical colleges and institutions that provide specialized training in a specific career field, trade or profession. If the career you’re interested in only requires certifications or other trade or profession specific credentials to get started, you may want to consider a technical degree as they are typically cheaper, faster, and, depending on the industry, can offer jobs that pay just as much if not more than jobs you may get from completing a bachelor’s or graduate degree.

Another common institution is a community college or junior college. They are more affordable; offer certifications, associate degrees and other alternatives to a four-year degree; and typically offer reciprocity with four-year degree programs where you complete the first two years at the community college, transfer to the four-year program for your remaining two years, and end up with a four-year degree (the same degree you would have gotten had you spent the entire four years there).

Online College Choices

Another way to save money on your college education is to look at online college options. For many universities, they offer similar degree programs, but without the added expenses of living on campus.

Online Colleges – Accreditation

When looking at online colleges, make sure to do your homework. They need to be accredited in your field of choice. If they aren’t, you may not be eligible for federal and state financial aid programs, as well as many employer tuition assistance programs. Graduating from an accredited program is typically a prerequisite for professions that require a license. The most popular professions include:

Accounting (CPA)
Architecture
Dentistry
Engineering
Law
Medicine
Nursing
Pharmacy
Psychology
Teaching
Veterinary Medicine

Graduating from an accredited program is also a prerequisite for many graduate programs. The most recognized and accepted type of accreditation in the United States is regional accreditation. There are six geographic regions of the US with an agency that accredits college and university higher education programs. They are as follows:

The Middle States Association of Colleges and Schools.
Accreditation of colleges in the middle states region (Delaware, District of Columbia, Maryland, New Jersey, New York, Pennsylvania, Puerto Rico).
The New England Association of Schools & Colleges.
Accreditation of colleges in the New England region (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont).
The North Central Association of Colleges and Schools.
Accreditation of colleges in the north central region (Arkansas, Arizona, Colorado, Iowa, Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, North Dakota, Nebraska, Ohio, Oklahoma, New Mexico, South Dakota, Wisconsin, West Virginia, Wyoming).
The Northwest Association Of Schools And Colleges.
Accreditation of colleges in the north west region (Alaska, Idaho, Utah, Montana, Nevada, Oregon, and Washington.)
The Southern Association of Colleges and Schools.
Accreditation of colleges in the southern region (Alabama , Florida , Georgia , Kentucky , Louisiana , Mississippi , North Carolina , South Carolina , Tennessee , Texas , Virginia)
The Western Association of Schools and Colleges.
Accreditation of colleges in the western region.

To find out if your school is accredited, visit the appropriate region’s website and look up the institution’s name.

Online Colleges – Shop Around

On top of accreditation, make sure to shop around. With all of the choices available, it behooves you to do some research into the cost and value of the programs you’re interested in. You want to find a program you can afford, but will also prepare you for the future. There are many reputable websites that provide rankings of colleges for each year like U.S. News, Forbes, and Money.

A good example of an appropriate online university is Western Governor’s University. They are a non-profit, accredited university that provides online degree programs in nursing, information technology/computer science, business, and teaching. Also, on top of that, they are competency-based and charge by semester, which means you are able to complete the program at your own pace and only pay by time as opposed to credit hour. This means you could possibly complete your degree work in half the time of a traditional university and pay a small fraction of the price. Many of my coworkers in our IT department utilize our corporate tuition reimbursement program to obtain their degrees from Western Governor’s University.

Educate Yourself on Personal Finances

Make a Budget and Stick to It

Creating and following a budget is essential to identifying and directing where your money goes each month.

For more information, please read: How to Create a Simply Monthly Household Budget

Avoid Debt

If at all possible, avoid debt like the plague. There are many, many horror stories of college students who spent $100,000s on student loans and the “college experience”. Don’t be one of these students!

Avoid Credit Cards

Credit cards are like playing with fire. Sure, it can be useful at times, but if you’re not careful, it can burn you.

They typically have higher interest rates than a personal loan or similar lending instrument, and are extremely easy to be approved for.

It may not be a bad idea to have one for building your credit, however, if you have any doubts about your ability to control your spending, stay away. On second thought, just stay away from credit cards while your in college; you have enough to worry about!

Avoid Any Unnecessary Fees

Overdraft, credit card, and minimum account balance fees are all examples of fees that should be avoided at all cost. When you have little to no money, fees will eat at what little bit of money you do have. The more vigilant you are in making and following your budget, the more likely it will be that you avoid these fees.

TIP: If you make a mistake and are charged a fee, call up the bank or credit card company and see if you can negotiate the removal of the fee. If this is your first time, it’s very likely they’ll work with you because they want your business moving forward.

Emergency Fund

An emergency fund is savings you set aside for true financial emergencies. For a college student, this could be money you need for an unexpected car repair or medical emergency. Not everything is a financial emergency (even if it feels like it is).

For more information, please read: Emergency Fund Guide: What, Why & How Much Money to Save

Leave the Car at Home

Many colleges and universities have a campus where you can access everything by walking or biking. In addition, many also have access to public transportation. Unless you absolutely need it for school, you could save money by leaving your vehicle at home.

Hold Off on Getting a Pet

Always dreamed of owning a pet, but never could at home? Well, college isn’t the place to start. Not only will you be busy all of the time, but pets are a big financial responsibility. According to the ASPCA, the average cost for the first year of dog ownership can range from $1,471 – $2,008.31 (small to large dog). For a cat the average costs for the first year of ownership is $1,174. Can you afford an extra ~$1,000/year on pet expenses?

For more information, please read: Annual Costs of Owning a Pet: Can I Afford a Pet?

Save Money on Housing/Rent

Live at Home or With Family

When considering colleges, you may want to consider online colleges or those that are close to family (uncles, aunts, grandparents, etc.). You may be able to avoid or reduce the fees you would otherwise pay for housing.

Split Rent with Roommates

If you live off-campus, save money by finding a house and roommates and splitting the rent. If you can find a house that rents for $2000 and split it between four roommates, you’ll only be responsible for $500/month in rent. The less expensive the house and the more roommates, the less you’ll end up paying in rent.

Save Money on Food/Groceries

Shop for Groceries on a Budget

Buying groceries and cooking meals from home is much cheaper than eating out. With a little forethought, you could save considerable money each month by eating in.

For more information, please read: How to Shop for Groceries on a Budget

Buy in Bulk

In most cases, buying in bulk can mean less trips to the grocery store or supermarket and a cheaper price per item. For college students, this can be especially useful for non-perishables; things like paper towels, toiletries (toothpaste, toilet paper, soap, etc.), trash bags, dish soap, etc.

For more information, please read: How to Save Money Buying in Bulk

Plan Your Meals Ahead of Time

To avoid impulsively buying food while you’re out, it’s best to make meals ahead of time. This could be something as simple as making a quick salad and packing it in a lunchbox or even just bringing a bag of trail mix to class.

Make Your Own Coffee

Getting a coffee at the bookstore or out with friends may seem like a small expense at the time, but it quickly adds up. Let’s just say your average bistro coffee is about $5/cup and you get a cup three times a week. Over the course of a year, you will have spent $780 coffee.

Opt instead for brewing your own coffee. Coffee made at home is relatively inexpensive and if you’re worried about the social aspect, buy a Yeti tumbler or similar container and take it with you to hang out with friends or study groups.

Use Coupons

Scour the internet and local papers for coupons and use them to save money on your groceries.

Save Money on Textbooks

Borrow or Rent Textbooks

Try to find roommates or classmates you can borrow your textbooks from. If that fails, try to rent your textbooks from services like Amazon textbooks. You can get free two-day shipping with Amazon Prime Student (at the time of this writing, a free 6-month trial is available).

Buy Used Textbooks

If you’d rather own the textbooks, consider buying them used. Used textbooks are typically much cheaper and can usually be found in good condition. Again, Amazon textbooks is a good place to start. I’ve also found considerable discounts on Ebay as well.

TIP: When looking at used textbooks, make sure there isn’t some software code or other digital access that’s required for class. You can typically purchase access separately, but you’ll need to factor that into the price when comparing options.

Sell Your Textbooks

If you’re done with the semester and won’t need the book for future semesters, you should consider selling your used textbooks. You can sell them to roommates or classmates, or through various websites like Bookfinder, BookScouter, TextbookRush, as well as Amazon and Ebay.

Take Advantage of Student Discounts and Perks

There are many companies that offer discounts to students for various items. You shouldn’t spend impulsively, but if it is something you need to buy anyway such as a software package or computer for school, you could try the university website and vendor’s website to see what discounts are available to students. This is a bit outdated (2017), but Insider.com put together a full list of companies offering discounts to college students.

Get a Job on Campus

Getting a job on campus is a great way to earn money as a college student (and ultimately save money on college). There are often multiple job opportunities on campus including as a resident advisor, working in the dining hall or campus café (including any restaurants that may be on campus), as part of the work-study program, etc.

Start a Side Hustle

Another great way to earn some extra money is to start a side hustle that you can do on your own time.

For a list of ways to earn extra money, please visit: 50+ Legitimate Ways to Make Extra Money

Save Money on Entertainment

Opt Out of Cable

Instead of paying for cable, use streaming services like YouTubeTV, Netflix, Hulu, Sling, and Amazon Prime for your viewing pleasure. Choose one or two services and you’ll still likely pay less than you otherwise would have for cable.

For more information, please read: How We Saved Money on TV by Cutting the Cord

Use the School Gym to Work Out and Play Indoor Sports

If your tuition includes free access to the university’s gym, take advantage of it. In addition to exercise equipment, many college gyms provide access to racquetball courts, basketball courts, Olympic-sized swimming pools, rock climbing walls, running tracks, etc.

Enjoy the Great Outdoors

One of the cheapest things you can do for entertainment is to find a local park and go hiking, running, camping, kayaking, biking, etc. For a list of National Parks, you can visit the National Park Service’s Find a Park page or google state and local parks near you. Many cities, municipalities, and counties have parks departments, so you can visit their website as well for information.

For instance, if you’re looking for parks in Charleston County, SC; you may consider visiting the Charleston County Parks & Recreation Commission’s website for more information.

Take Advantage of Free Campus Activities and Attractions

Most colleges and universities have access to free activities like presentations, festivals, demonstrations, speeches, lectures, and even free classes. Larger universities may host varying organizations as well. To get started, visit your college or university website, and take a look at their upcoming events.

Find Free Things to Do in Your Area

To find more free things to do in your area, you should check out the community calendar for your town, city, municipality, and/or county. You can usually find out what’s going on by visiting their respective websites. You can find free events like community yard sales, open houses, races, music concerts, etc.

Another place to look is back at your city and/or county’s park and recreation department. They’ll often offer free classes or workshops to the public.

Visit your Local Library

Another great place to look for entertainment is at your local library. You’ll find advertisements and notices for free events. Many offer free books readings, book clubs, and lectures as well as tickets to other attractions like museums or exhibits. In addition, the library may have access to free books, movies, music, audio books, among other things. Each library is a little different; visit your library to find out what they have to offer.

Join a Club

Joining a college club is a great way to get involved and meet like-minded students. Visit your university’s website for a list of clubs available.