BYU students manage costs with less debt through scholarships, federal aid and financial planning

Student loan debt in the United States has climbed into the trillions, becoming a financial burden for many college graduates. But at Brigham Young University, students are working to buck that trend.

On average, BYU graduates leave college with less debt than their peers nationwide, supported by a combination of lower tuition, financial aid opportunities and a culture that emphasizes debt avoidance.

The National Center for Education Statistics, or NCES, reported that in the 2023-24 school year, 21% of full-time undergraduate students at BYU received student loan aid.

A major factor contributing to lower student debt at BYU is affordability. Unlike public universities, BYU is a private institution that does not use in-state and out-of-state tuition models. Tuition is instead categorized between members and nonmembers of The Church of Jesus Christ of Latter-day Saints.

BYU receives funding from the Church to subsidize the cost of attendance. For undergraduate students, tuition for Latter-day Saint students is $3,344 per semester, while nonmembers pay $6,688.

This subsidy allows BYU to maintain tuition rates that are significantly lower than those of other private universities and even some public universities.

According to data from the NCES, the estimated net price for full-time undergraduate students at BYU in 2021-22 was $12,399. That is lower than the average cost at other private universities ($29,700), as well as public universities ($15,200) in the same year.

The lower cost of attendance often enables students to cover expenses without borrowing.

However, affordable tuition alone does not explain the full picture. BYUs financial aid system encourages students to exhaust non-loan resources before turning to debt.

Students are advised to combine family savings, scholarships, federal aid and employment to meet their financial needs.

A common savings tool families use for education is a 529 plan. A 529 is a tax-advantaged savings account designed for the expenses of education. Families can contribute money over time, starting as early as they desire, and the funds will grow tax-free.

The money can later be used for qualified educational costs such as tuition, housing, books and supplies.

Kathrine Miner, a mathematics major at BYU, said her parents set up a 529 plan for her when she was born.

Its been so nice to focus on school and not really have to worry about financial stress, Miner said. I have a lot of stress even without that, like taking rigorous courses and trying to have a job. I cant imagine that stress and then having student loans after college.

Another central part of how many BYU students afford college without loans is student employment. BYU encourages students to work during the academic year, often in on-campus positions designed to fit around class schedules.

According to BYU Human Resources, working during school can significantly reduce or even eliminate student debt.

Research cited by BYU Human Resources states that students who work up to 20 hours per week tend to have better GPAs than those who do not work. BYU also highlighted that work experience helps students gain experiences that lead to higher salaries post-graduation.

On-campus jobs are exempt from FICA taxes, allowing students to take home a larger percentage of their paychecks. That extra take-home amount contributes to paying for expenses while attending school.

BYU student Isaac Anderson said he works to help pay for school.

I just used everything that I made over the summer to pay tuition, Anderson said. I knew I didnt really want to take out student loans, so I prioritized working really hard and looking for scholarships.

Miner also noted the benefits of student employment at BYU.

I love how BYU makes jobs for the students. They make opportunities for students to earn money while they are here, but also get experiences, Miner said.

Many students also rely on federal financial aid by completing the Free Application for Federal Student Aid, or FAFSA. This application evaluates a familys financial situation and determines eligibility for need-based assistance.

FAFSA results are used to calculate a Student Aid Index, which determines how much aid a student may receive.

Students with financial need can qualify for federal grants, including the Pell grant, which does not need to be repaid. These grants directly reduce the cost of attendance.

The maximum Pell grant award is more than $7,000 for each academic year, which can cover the entire cost of BYUs tuition for Latter-day Saint students if they qualify for the grant.

The exact amount awarded for grants depends on factors that are different for each student.

NCES reported that in 2023-24, 18% of full-time BYU students received Pell grants.

Nicole Frisch, a junior in the accounting program, became eligible for a Pell grant after getting married in her sophomore year of college. Both she and her husband, Andrew, qualify for the maximum amount.

We get about $3,700 per person per semester from FAFSA, around $7,000 per year, Frisch said. At other schools, that wouldnt make a dent, but here, it can cover everything.

BYUs student populations also play a role in financial aid outcomes. The university has a relatively high percentage of married students compared to other universities.

According to university data, about 63% of students are single, 17% are married and 20% are unspecified.

Married students and students 24 or older are considered independent for FAFSA purposes, meaning they do not report parental income. This often results in a lower Student Aid Index and can increase eligibility for need-based grants.

As a result, some older or married students may receive more federal aid that does not require repayment.

Scholarships are another key component of how BYU students finance their education.

For the 2023-24 school year, 69% of undergraduate students received institutional scholarships and 17% received state or local government scholarships.

BYU offered academic scholarships based on GPA and credit completion. After each fall semester, full-time students have an opportunity to apply for university scholarships. The students are evaluated based on a GPA cutoff, which is determined by rankings in each college.

To apply for scholarships, BYU students fill out a FAFSA form and a scholarship application, which includes essays and personal information.

Private scholarships administered by BYU are also available. These are funded by donors, companies and organizations. These scholarships are awarded based on criteria such as geographic origin, church membership or family background.

Departmental scholarships are also offered by colleges within the university, providing additional opportunities. These scholarships are determined by each college and typically are for continuing students and not incoming freshmen.

Beyond university-administered aid, BYU students can pursue external scholarship opportunities. One example is the Utah Opportunity Scholarship, a statewide merit-based program that rewards high school students who complete advanced coursework while maintaining a 3.3 GPA or higher.

George Liddle, a pre-business student, receives scholarships that pay for his tuition and has a part-time job to cover his housing and other expenses. He said that because of the scholarship, he has extra time he can invest in other experiences.

The bottleneck in my life is my time, but because my fees and school are covered, Im using my extra time not to make more money, but to invest in experiences and relationships, Liddle said.

Similarly, BYU student Hyrum Bradshaw said the financial support he receives allows him to focus on long-term goals.

Those two scholarships cover all of my costs, Bradshaw said. Its helped me have more freedom and flexibility to figure out what I want to do with my life.

The total amount of grant and scholarship aid awarded in the 2023-24 school year to BYU students was $17,984,148, according to NCES.

BYU students are not limited to a single type of financial aid. Many students combine multiple resources, family savings, federal grants, scholarships and employment, to cover the full cost of attendance.

This stacking approach allows students to reduce or eliminate the need for borrowing money.

Although federal student loans remain an option, BYUs financial guidance emphasizes minimizing debt. Students are encouraged to practice financial fitness and consider the long-term impact of borrowing.

Several students said avoiding debt has influenced their approach to their futures.

Weve been able to take the time to make connections, to get good jobs that we enjoy and that are actually going to be more beneficial for us in the long run, Frisch said.

I feel like Im not in a rush to get through school. Im trying to find a career that I want to do rather than getting a degree quickly, so I can just get any job. Its been good for me to pick something I will like and want rather than out of necessity, Miner said.

Beyond financial structures, BYU promotes a broader culture of financial responsibility. Students are encouraged to budget, work and plan as part of their college experience,

This mindset, combined with affordability and financial aid opportunities, contributes to lower levels of student debt among graduates.

As the cost of higher education rises nationwide, BYU encourages strategic use of financial aid in an effort to produce graduates who are better positioned for long-term financial stability.