By: The Capella University Editorial Team
Reading Time: 10 minutes
Many students assume student loans are the primary way to pay for a degree, only to realize later that they may have been able to reduce borrowing or avoid it altogether.
That’s because financial aid options like scholarships, grants, employer tuition assistance and other cost-saving strategies are often available. The hard part is knowing what applies to you and how to find it.
Get practical guidance from Chelsea T., a specialist on the Capella University Financial Aid Support Team, to understand your options and start mapping an approach for how to pay for school with minimal student loans.
Paying for college without loans often starts with funding that doesn’t require repayment.
Chelsea suggests imagining your financing as a bucket and filling as much of it as possible with options like grants, scholarships, or employer tuition assistance or Federal Work-Study.
Loans can then be used only to top off what’s left, if needed.
Wondering whether you can get financial aid for your degree?
The FAFSA is the form schools use to determine what types of financial aid you may qualify for, including grants, work-study and federal loan options.
Chelsea says completing your FAFSA before speaking with a university financial aid advisor can help streamline the process. It gives you and your advisor a clearer starting point when reviewing available options.
FAFSA results can show whether you may qualify for federal grants or Federal Work-Study, which can help reduce how much you need to cover through savings or loans.
Some institutions also use FAFSA information when offering additional need-based grants or other aid. Because policies vary, it’s worth asking what your school considers and connecting with the financial aid office.
If you’re balancing school with work and family, reviewing your results early can help you compare programs and tuition costs before you enroll and choose options that better fit your financial situation.
Searching for scholarships, grants and other non-repayable funding may also help cover education costs and limit how much you need to borrow later.
Since scholarship timelines and documentation requirements can vary, starting early gives you more time to prepare and apply.
You may need transcripts, a short personal statement, proof of enrollment or employer verification, depending on the award.
Military education benefits can help eligible students cover tuition costs and other education costs.
At Capella, if you have a military affiliation, you may be eligible for reduced tuition as a way to support your educational goals, including a 10% discount on eligible certificate, master’s and doctoral programs and a 15% discount on eligible bachelor’s programs. Eligibility rules and exclusions apply.
Capella’s dedicated military support team can also help you understand and apply the benefits you’ve earned, making it easier to plan for school costs and reduce the need for student loans.
Ready to explore scholarship opportunities? Explore Capella’s scholarships and grants.
Some employers offer tuition assistance or tuition reimbursement that may help you cover tuition costs with less reliance on student loans.
Since programs can vary, it’s a good idea to review your workplace policy before enrolling and confirm the details with HR.
For example, your employer may require a minimum length of employment, cover only certain programs or set an annual dollar limit. It’s also common to see grade requirements, specific paperwork (like receipts or transcripts) or repayment terms if you leave the company within a set timeframe.
Note that some employers pay the school directly while others reimburse you after you successfully complete a course.
If employer support still leaves a gap, Federal Work-Study may be an option to help you earn money while you’re enrolled. It’s a form of federal student aid based on financial need. Availability depends on what your school offers. Jobs may be on campus, off campus or remote.
Once you’ve mapped funding, the next move is lowering total education costs.
That can include transfer credit, credit for prior learning, general education alternatives and planning for indirect expenses.
Your total cost goes beyond tuition. Work schedules, caregiving responsibilities and location can all affect what you spend to attend school, including expenses like commuting, parking or housing.
Studying online may reduce some of these costs by eliminating the need to relocate or commute.
Changes in your routine can also influence affordability. If work hours or childcare demands shift, you may need to slow your pace or extend your timeline, which can increase overall costs.
As you compare programs, pay close attention to pacing and course-load expectations. Choosing a format you can realistically sustain can help you stay on track and reduce the likelihood of needing additional loans.
You may be able to reduce the number of courses you need by applying transfer credit or credit for prior learning. Both options recognize college-level knowledge you’ve already gained before starting your program.
Fewer required courses may lower your total tuition costs and potentially shorten the time it takes to complete your degree.
Transfer credit comes from previous coursework completed at another institution. Start by gathering your transcripts, then use Capella’s transfer credit estimator for an early estimate. An official transfer credit evaluation will confirm which courses apply to your program.
Credit for prior learning is evaluated separately. It applies to college-level knowledge gained outside formal coursework and typically requires written assessments or review of relevant credentials.
Credit is reviewed against program requirements and course equivalency, so not every course or credential will apply. With Capella, how and when credits can be applied depends on the learning format you choose. Capella offers two online formats. GuidedPath follows a structured schedule with weekly assignments, while FlexPath is self-paced and allows you to move through courses as you demonstrate competency.
Because these formats differ in pacing and structure, some credits need to be finalized before enrollment, while others may be completed alongside your program.
Completing eligible general education courses through approved partners is another way to reduce the number of credits required for your degree.
At Capella, eligible general education courses may be available through our affiliate, Sophia Learning, for select bachelor’s programs.
How and when these courses can be completed depends on your learning format. If you’re in GuidedPath, you may be able to complete eligible Sophia courses alongside your program. If you’re in FlexPath, Sophia courses must be completed and graded before you begin so they can be evaluated and applied where eligible. Note that credits earned through Sophia are not counted toward the Capella GPA or financial aid eligibility.
Some universities, including Capella, offer benefits for students who are referred by other students. With Capella’s Refer a Friend Scholarship, new or returning students may qualify for $500 off their GuidedPath tuition or 20% off their first 12-week billing session tuition in FlexPath when referred by a current student or graduate of Capella.
Since referral scholarships vary by institutions, it’s a good idea to check the official scholarship page for eligibility requirements, deadlines and the exact referral steps.
It also helps to confirm whether the referral must be submitted before you apply or before you enroll, since timing can affect whether the scholarship is applied.
If you’re already working full time, staying employed while you earn your degree can help you maintain a steady income and cover costs.
Online learning can support this because coursework may be easier to fit around your work schedule.
Many working students use their regular income for expenses that don’t show up on a tuition bill, such as:
The goal is to keep education affordable without stretching your time, well-being or academic progress too thin, especially if you’re aiming to pay without student loans.
How to borrow responsibly for education costs:
With scholarships, grants and other cost-saving options, you may be able to cover education costs without borrowing.
But if there’s still a gap, here’s how to evaluate loan options responsibly.
As Chelsea explains: “When figuring total cost, remember to total direct and indirect college costs.”
Direct costs refer to college tuition and fees and indirect costs are things like living expenses, transportation, books and other essentials.
Next, subtract financial aid such as scholarships, grants, employer assistance, transfer credits (college credits), credit for prior learning and any out-of-pocket contributions. The remaining amount is what you may need to borrow through student loans.
With Capella’s Net Price Calculator, you can estimate tuition, potential federal financial aid eligibility and expected out-of-pocket costs for the program you’re considering. You should recalculate each term since course load and personal responsibilities may change over time.
Different repayment plans can change your monthly bill and the total amount you repay over time, so it’s worth comparing options before you borrow.
With federal student loans, you’ll typically see two main plan types:
If you explore student loans from private financial institutions (including some credit unions), compare repayment terms and interest rates and confirm whether the rate is fixed or variable.
As Chelsea explains: “Some loans have a six-month grace period after graduation.” She recommends using the loan simulator at StudentAid.gov to compare federal repayment plans and estimate payments.
Once you know how much you may need to borrow, take a beat to decide whether that amount fits your budget and feels manageable in the long term.
“Be in the driver’s seat,” Chelsea says. “Understand what you have and what you want to borrow. What does this look like for your future self?”
If the monthly payment would stretch your household budget, pause and reassess.
You may be able to reduce the impact by making a few realistic adjustments, such as trimming nonessential spending, picking up extra hours or choosing a lower-cost path.
The key is being honest about what you can sustain during coursework and after you finish.
Before you borrow, think about how repayment fits into your budget now and how it could affect other financial commitments over time.
If you’re trying to pay for school without student loans, it helps to have support with both learning and budgeting so you can plan around real costs before you borrow.
Capella offers online learning formats designed for working adults. Depending on your program, you may have the option to choose FlexPath, a self-paced learning format within a defined timeframe, or GuidedPath, which follows weekly deadlines with faculty support.
Choosing a format that fits your schedule will help you stay consistent and maintain a steady income while you work toward your degree.
To help you manage education costs, Capella offers financial aid options such as scholarships, grants and employer tuition assistance, with eligibility varying by program.
Additionally, academic and financial aid advisors can help you understand requirements, map a course-load plan and review funding options so you can build a plan.
Ready to map out your education costs? Explore Capella’s financial planning resources.
It can be possible if you combine scholarships, grants and other aid that does not require repayment with employer tuition assistance, military benefits, savings and income from work.
Cutting costs through transfer credits or eligible general education options can also reduce what you need to cover.
Complete the FAFSA early. It can help determine eligibility for federal financial aid, including grants, Federal Work-Study and federal student loans.
Once you receive your results, compare total education costs across programs, then ask the school’s financial aid office what additional aid or payment options may be available.
There is no single best option.
Start with aid you do not repay, then reduce costs through transfer credit or eligible course pathways.
Next, check employer tuition assistance or military benefits. If you still have a gap, compare loan terms and repayment plans before you borrow.
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