It’s teetering on the inevitable: if you go to college, you will most likely be taking out student loans. Otherwise, you can’t afford it. Very few come out of this fire unscathed and debt free.
This, of course, wasn’t always the case. Until recently, college was fairly affordable to all who ventured out. Sure, it may have tightened a few belts around the house, but most middle-class families could afford to send their children to college — especially a state-supported college or university — and had them come out somewhat debt free, and with a job.
The tides have turned, though, and millions of students who took out loans to attend college in the last decade are now saddled with significant debt, preventing them from buying a home or making other purchases that young people often do when starting a career and family. Now, students planning to attend college are looking for ways to do it without piling on the debt. But is that even possible?
But is that even possible…?
You Need a Certain Income for Debt Free Graduation
Consumer Affairs reports that the personal finance site GoBankingRates.com crunched the numbers in an effort to answer that question. The editors determined that it is possible, but that it requires a certain income — and that income varies by state, based on the cost of tuition at state universities and the cost of living.
In its state-by-state breakdown, GoBankingRates.com found Indiana requires the lowest annual income in the nation in order to send a child to a four-year college without taking out a loan. The annual required income is $62,091. The average college tuition and fees in Indiana amounts to $9,200 a year.
Arkansas, Ohio, Missouri, and Kentucky are also in that range, with required annual incomes ranging from $62,596 to $64,111.
At the other end of the scale are Hawaii and California. Families in Hawaii would need an annual income of $124,454 to send a kid to college debt-free. In California, the required income is $106,771.
Of course, there is another way to graduate from college debt free. Just go to work for the right company while you are attending school.
Dozens of firms offer their employees — even part-time employees — tuition reimbursement as a perk. There are often conditions placed on this benefit, however. The field of study might have to fall within a set of guidelines. In some cases, you might have to commit to remain with the firm for a period of time after graduation.
You might also have to attend a particular school, and take courses online. Starbucks reimburses employees who attend Arizona State University online. Anthem has linked up with Southern New Hampshire University’s online curriculum.
You can find a list of other companies that provide at least partial tuition reimbursement here.