# How to pay for college _This article was updated November 4, 2025._ Written by[Michael Feder](/blog/authors/michael-feder.html) Reviewed by Chris Conway, Director of Financial Education Initiatives and Repayment Management Today’s adult learners have a variety of options to pay for college. From scholarships and loans to employer tuition benefits, it comes down to finding the right fit for their needs. Whether students are upskilling as part of their current job, making a pivot in a career path or starting school for the first time, their circumstances often drive the type of financial aid awards they’re eligible for. ## How to pay for college Christine Conway, director of financial literacy at University of Phoenix, says there are a number of ways to pay for college and multiple opportunities to make school more affordable or fit in with existing financial obligations. She suggests adopting a search strategy that starts with exploring scholarships and grants. Next, students might look at other lower cost options, and lastly, weigh taking on a loan. “It sometimes takes a little time and effort to explore the options, but it is time well spent if you can reduce what you are borrowing and get that degree,” Conway says. ## Financial aid ### Scholarships Scholarships are awards of financial support for education that are typically free from financial repayment obligations. Scholarships can be need-based or merit-based and are offered by a variety of sources, including colleges and universities. For example, University of Phoenix offers scholarships of up to $1,000 and $3,000 to new, qualifying students. Prospective students can also use a [search tool ](https://1phoenixscholars.communityforce.com/Funds/Search.aspx) to find scholarships at University of Phoenix and other sources. ### Federal grants By filling out the Free Application for Federal Student Aid (FAFSA®) form, some students may find they qualify for the Pell Grant, which is available to individuals who demonstrate financial need and are pursuing their first undergraduate degree. This and other federal grants are based on financial need, so not every student will qualify.  ### Employer tuition benefits Many employers offer a tuition benefit to employees earning a college degree, especially if it’s in an area that will directly help them in their jobs. There’s often a cap of $5,250 to remain within IRS guidelines. While most employers that offer tuition benefits are large organizations, some small businesses might also be willing to provide tuition benefits. Individuals planning to go back to school, might reach out to their supervisor or HR department to ask if they offer tuition help. ### Military benefits Understanding one’s eligibility for [military benefits](https://www.va.gov/education/) to pay for college may require some explanation from a financial aid expert. There are active-duty benefits, as well as benefits for previous military experience.  _Tip: Students who qualify for military education benefits may also be eligible for federal financial aid. To apply, they need to fill out a FAFSA form._ ## Your money ### Cash payments from your savings or income After exhausting the options above, students might consider financing their education with their own money. Individuals who have savings they can dip into, or an income that can support paying tuition as they go, will benefit by not having to take out a loan and then pay interest on top of their tuition bill. ## Lower-cost credits ### Prior Learning Assessment (PLA) Students at University of Phoenix can apply to have their prior learning and life experiences evaluated for college credit. Eligible experiences may include previous professional certificates, work training, parenting or even bereavement. _Tip: Students should apply for PLA at the beginning of their college journey to ensure they don’t repeat the learning experience in a required, credit-bearing course._ ### Other alternative credit options Some universities, including University of Phoenix, accept credit earned by completing courses from alternative providers like [Sophia ](https://www.sophia.org/), [StraighterLine](https://www.straighterline.com/) and [Study.com ](https://study.com/). These are lower-cost, self-paced courses whose credits may transfer to a student’s degree program. Using these providers can expedite the timeline for completing a degree. _Tip: As with the University of Phoenix PLA program, students should consider seeking alternative credit options when they begin college. They may help students complete their general education requirements._ ## Loans ### Federal student loans The most common way to pay for college is also one of the most expensive: loans. If a student has exhausted all other options, federal loans are a better choice than taking out a personal loan, since federal loans typically have a lower interest rate than personal loans or credit cards. (Note: Direct subsidized and direct unsubsidized loans are not based on credit history.) There are other benefits to federal loans too, like a student’s ability to defer payments while in school or if they encounter financial hardship. Federal student loans also come with more repayment options. _Tip: Students don’t have to accept the full amount of the federal loan they are offered. In fact, it’s advisable only to borrow the amount they need to cover their educational costs and only after they have explored their other payment options. Federal loans may be better than a personal loan, but students still have to repay them._ ## How to decide if college is aligned with one's goals College is a big investment and financial commitment, but it is doable. It may take some extra time and effort, but when students look for free money first, use their own money second, look for lower-cost options third, and consider borrowing only as a last resort, college can be more affordable. “You’re less likely to see the return on investment if you don’t have that degree,” Conway adds. “It is really important that students recognize this up front. If you are borrowing money, make sure that your goal is to graduate so that you reap the benefits of it.” ## Learning more about how to pay for college Understanding how to pay for college can be a process. Students may explore more[ways to save](https://www.phoenix.edu/cost-savings)at University of Phoenix by learning about[scholarship opportunities](https://www.phoenix.edu/tuition-financial-aid/scholarships.html),[PLA](https://www.phoenix.edu/tuition-financial-aid/prior-learning-assessment.html)and[employer tuition benefits](https://www.phoenix.edu/tuition-financial-aid/employer-tuition-benefits.html), among other options.  **Editor’s note:**_As a higher learning institution, University of Phoenix recognizes that there are a diversity of viewpoints and opinions in the marketplace of ideas. This blog series provides a forum for discussion that represents that diversity of thoughts and ideas and does not necessarily represent the position of University of Phoenix, but rather advances openness and discussion of sometimes controversial topics._ ## Watch this video on ways to pay for college --- Read more articles like this: - [9 FAFSA Changes That Could Impact Your Application](/blog/ten-changes-to-the-new-fafsa.html) — Tuition and Financial Aid | January 23, 2024 • 4 minutes - [How to Fill Out the FAFSA®](/blog/how-to-fill-out-the-fafsa.html) — Tuition and Financial Aid | August 08, 2023 • 8 minutes - [Secrets of scholarships: Your step-by-step guide to an effective essay](/blog/secrets-of-scholarships-your-step-by-step-guide-to-an-effective-essay.html) — Tuition and Financial Aid | October 26, 2021 • 8 minutes ### ABOUT THE AUTHOR A graduate of Johns Hopkins University and its Writing Seminars program and winner of the Stephen A. Dixon Literary Prize, Michael Feder brings an eye for detail and a passion for research to every article he writes. His academic and professional background includes experience in marketing, content development, script writing and SEO. Today, he works as a multimedia specialist at University of Phoenix where he covers a variety of topics ranging from healthcare to IT. ### ABOUT THE REVIEWER As Director of Financial Education Initiatives and Repayment Management, Chris Conway works with departments across the University to provide resources that allow students to make more informed financial decisions. She is also an adjunct faculty member for the Everyday Finance and Economics course at the University, and she chairs the National Council of Higher Education Resources College Access and Success Committee. Conway is committed to helping college students make the right financial decisions that prevent future collection activity. This article has been vetted by University of Phoenix's editorial advisory committee.  [Read more about our editorial process.](/blog/editorial-process.html)