Tuition-free colleges exist, you just have to know where to find them.

The promise of free college tuition is a strong draw for college-capable low-income students. But, many free tuition programs come with caveats that cause them to fall short of the promise. 

Let's break down what you should know about tuition-free colleges, along with a list of some U.S. colleges that are tuition-free. We also share some foreign colleges that also have free tuition programs that may be of interest.

You might also want to dive in to our guide on How To Pay For College.

Limitations On Free Tuition Programs

Although free tuition programs make college more affordable, there are several limitations that families should be aware of.

• Free tuition does not mean free college. Most free tuition programs cover the cost of tuition and fees but not room and board, books and supplies, or other college costs. Some do not cover fees, which can be significant at some colleges. At a community college, the textbooks can be a significant portion of college costs.
  
• Many free-tuition programs are last-dollar, meaning that all other sources of financial aid must be applied to tuition first before the free-tuition program covers the remaining tuition costs. This may prevent a student from using the Federal Pell Grant and state grants to cover living expenses and other college costs.
  
• The student may need to be a resident of a particular city or state. The student may need to have attended and graduated from particular public schools in the city. The student may have to agree to continuing living in the city or state for a number of years after college graduation.
  
• Some free-tuition programs require the student to enroll in college immediately after graduation from high school.
  
• Many free-tuition programs require the students to enroll in college full-time. The student may also be required to reside on campus.
  
• Some free-tuition programs are limited to students with demonstrated financial need or to Pell Grant recipients.
  
• Some free-tuition programs require all students to work a part-time job on campus. Others require the student to participate in community service during the academic year and summer.
  
• Some free-tuition programs require the student to maintain at least a minimum GPA, such as a 2.0, 2.5 or 3.0 GPA on a 4.0 scale.
  

Certain education tax benefits, such as the American Opportunity Tax Credit (AOTC), Lifetime Learning Tax Credit (LLTC) and tax-free scholarships, are based on amounts spent on tuition, fees and course materials (e.g., textbooks, supplies and equipment). If tuition is paid for by a free-tuition program, it may reduce or eliminate eligibility for these tax breaks.

U.S. Tuition-Free Colleges

Federally-recognized work colleges require all students who live on campus to work as part of the college learning experience, regardless of financial need. Six of these colleges provide students with free tuition:

• Alice Lloyd College (KY)
• Berea College (KY)
• Bethany Global University (MN)
• Blackburn College (IL)
• College of the Ozarks (MO)
• Warren Wilson College (NC)
  

There are also several colleges that aren’t federally-recognized work colleges, but where students are required to work and receive free tuition:

• Curtis Institute of Music (PA)
• Deep Springs College (CA)
• Webb Institute (NY)

Deep Springs College provides free room and board in addition to free tuition.

There are several trade schools which provide free tuition.

• The Apprentice School (VA)
• Williamson College of the Trades (PA)
  

The U.S. military academies provide free tuition, room and board. The students are required to serve in the U.S. Armed Forces after graduation.

• U.S. Air Force Academy (CO)
• U.S. Coast Guard Academy (CT)
• U.S. Merchant Marine Academy (NY)
• U.S. Military Academy (NY)
• U.S. Naval Academy (MD)
  

Related: Military And VA Education Benefits To Pay For College

In addition to these colleges, there are dozens of colleges with “no loans” financial aid policies that provide free tuition to low-income students. These colleges include Ivy League institutions, MIT and Stanford University.

Other colleges that provide free tuition to all or some of their students include:

• Antioch College (OH)
• Arizona State University (AZ) – ASU College Attainment Grant
• Barclay College (KS)
• Haskell Indian National University (KS)
• Keene State College (NH) – Granite Guarantee
• Macaulay Honors College at City University of New York (NY)
• Plymouth State University (NH) – Granite Guarantee
  
• Sterling College (VT) – Wendell Berry Farming Program
• University of New Hampshire (NH) – Granite Guarantee
• Vanderbilt University (TN) – Ingram Scholars Program
  

Cooper Union for the Advancement of Science and Art (NY) previously provided free tuition for over a century, but had to start charging tuition in 2012 due to financial challenges. The college is raising money to enable a return to free tuition in the future. 

Several medical schools provide free tuition to all students, regardless of financial need. These include Cleveland Clinic, Kaiser Permanente and New York University. Other medical schools provide free tuition based on financial need. These colleges include Columbia University, Cornell University and Washington University in St. Louis. UCLA provides free tuition based on academic merit.

Some community colleges do not charge tuition. For example, the California College Promise Program, previously known as the BOG Fee Waiver, provides free tuition at community colleges in the state. Students whose family income is less than about 150% of the poverty line are eligible for the tuition and fee waiver.

At other community colleges, the combination of federal and state grants may be enough to cover the cost of tuition for some low-income students, such as students who are eligible for the maximum Federal Pell Grant.
Several states offer college promise programs that cover tuition at an in-state public college for students who graduate from a public high school. These programs include the New York Excelsior Scholarship, Oregon Promise, Rhode Island Promise and Tennessee Promise.

There are also hundreds of college promise programs offered by specific cities, such as the Kalamazoo Promise, Seattle Promise and Pittsburgh Promise. Most are last-dollar financial aid programs, where all other sources of financial aid are assumed to be applied to tuition before the remaining tuition is covered by the promise program. Full tuition is often limited to students who attended a public elementary and secondary school for 12 years, not just those who graduated from a public high school.

University of the People is an accredited online college that does not charge tuition, although it does charge course assessment fees.

The Campaign for Free College Tuition advocates in favor of free public college tuition programs.

Which Foreign Colleges Have Free Tuition?

Two dozen countries provide free public college tuition for their citizens. A few also provide free tuition to international students.

The following countries provide free tuition to international students, including U.S. students. However, some of these colleges teach classes in the local language, not English.

• Brazil (Classes taught in Portuguese)
• Czech Republic (Classes taught in the Czech language)
• Finland
• Germany
• Greece (Classes taught in Greek)
• Iceland
• Luxembourg
• Norway
• Panama
  

Free tuition does not include living expenses. In some of these countries, such as Norway, living expenses are high. (U.S. federal student aid can be used at about 400 foreign universities to pay for housing, meals and other college costs, but the funding is limited to federal student loans, not grants. 529 college savings plans can be used to pay for living expenses at these colleges abroad, but not transportation.)

Other countries, such as France, Slovenia and Sweden, are open to European Union (EU) citizens but not U.S. students.

A dozen countries provide free tuition only to their own citizens. These countries include Argentina, Austria, Denmark, Egypt, Kenya, Malaysia, Morocco, Poland, Scotland, Spain, Turkey and Uruguay.

Earning interest on your savings. It sounds awesome. But how does the interest formula for a savings account even work?

While building an investment portfolio is often a key element of growing your money, tapping into an interest-bearing savings account is another worthwhile part of a solid financial plan.

As you start to save, it's natural to wonder how much your funds can grow over time, based on simple and compound interest. 

We're sharing a couple of interest formulas for savings accounts to help you figure out how much you can earn. 

Simple Interest Formula For A Savings Account

If you want to learn how much simple interest you’ll earn from a savings account, you'll need to multiply your account balance by the time period the funds will remain in the account and the interest rate. 

Here’s the formula: Simple Interest = P x R x T

In the formula, the variables include the following:

• P - Represents the principal amount, otherwise known as the beginning balance.
• R - Represents the interest rate expressed as a decimal.
• T - Represents the number of time periods.

The following example can help you put these variables into context. 

How To Calculate Simple Interest In A Savings Account: Example

Let’s say you deposit $20,000 into a savings account that earns 5% interest per year. When expressed as a percentage, the interest rate equals 0.05. You plan to leave the funds untouched for one year.

Here’s the formula:

Simple interest = $20,000 x 0.05 x 1 = $1,000

If the savings account only earned 1% interest, here’s what it would look like:

Simple interest = $20,000 x 0.01 x 1 = $200

Simple Interest vs Compound Interest

The simple interest formula offers an estimate of how much you can expect to earn over the course of a specified time period. But in order to get a more accurate estimate of the amount of interest you’ll earn, you’ll need to take compounding into account.

Compound interest works by earning interest on interest you’ve already earned. As time marches by, the amount you’ll earn increases in pace due to the interest already added to your balance.

In general, compound interest is expressed as the annual percentage rate (APY). 

Compound Interest Formula For A Savings Account

Most savings accounts use compound interest - where you earn interest n your interest. 

Here’s the formula: Compound Interest = P (1 + (r/n)) ^nt

For this formula, we'll use the following variables: 

• P - represents the principal amount, otherwise known as the beginning balance
• R - represents the interest rate expressed as a decimal
• T - represents the number of time periods, usually in years
• N - represents the number of times interest is compounded in a year

We explore an example below to help you put these variables into context. 

How To Calculate Compound Interest In A Savings Account: Example

Let’s say you deposit $20,000 into a savings account that earns 5% APY. The interest is compounded monthly. When expressed as a percentage, the interest rate equals 0.05. You plan to leave the funds untouched for two years.

Interest = 20,000 (1 + (0.05/12))^(12 x 2)

Interest = $2,098.83

If you left the funds untouched for longer, the interest would continue to compound. For example, let’s say you left the funds to compound monthly with a 5% APY for five years. Here’s how much you could earn.

Interest = 20,000 (1 + (0.05/12))^(12 x 5)

Interest = $5,667.17

Other Free Interest Calculators

If you don’t want to put pen to paper, that’s okay. You can take advantage of one of the many free calculators online to map out your interest earnings.

For example, Investor.gov offers a compound interest calculator to make your calculations easier. 

Where To Make The Most Of Your Savings

If you want to put your savings to work, check out our list of the best high-yield savings accounts. Depending on the market, you might find a wide range of rates available. Of course, it’s usually a good idea to snag the highest interest rate you can.
 
If you'd rather secure a potentially higher interest rate for a predetermined period, a certificate of deposit (CD) might be a better fit. Many CDs offer attractive rates for savers, and shopping around can pay off.  

The Bottom Line

Smart savers can map out how much interest they can expect to earn by running a few calculations on their own, or by plugging their unique numbers into a ready-made calculator. Consider using the numbers to motivate yourself to tuck away more savings for the future. 

Seven U.S. states—Missouri, Georgia, Alabama, Arkansas, Florida, North Dakota, and Ohio—have filed a new lawsuit against the Biden administration, seeking to block what they describe as a secretive plan to cancel $73 billion in student loans.

The lawsuit, filed in the United States District Court for the Southern District of Georgia, accuses the Department of Education and President Biden of unlawfully attempting to mass cancel student loans without proper legal authority.

The legal action stems from newly uncovered documents that reveal the Department of Education’s instructions to federal contractors to begin canceling loans as early as September 3, 2024. Further documents exposed potentially political communication that was to be sent out to borrowers highlighting that the Biden-Harris Administration forgave these loans, all before the upcoming election.

According to the complaint, these cancellations could start immediately, with the potential to erase over $73 billion in loan balances overnight, with hundreds of billions more at risk. This also comes on the heels of a new report from the GAO that shows the student loan program swinging from break even to a large net-loss over the coming decade.

Related: Analysis On The Restart Of Student Loan Payments

Alleged Unlawful Student Loan Cancellation

The states argue that this plan is not only unlawful but also an aggressive attempt to bypass judicial and congressional oversight. “This is the third time the Secretary has unlawfully tried to mass cancel hundreds of billions of dollars in loans,” the complaint states, referencing earlier unsuccessful attempts blocked by the courts.

The lawsuit highlights the administration’s efforts to avoid public scrutiny by quietly instructing loan servicers to proceed with cancellations before any legal challenges could be mounted.

The Biden administration’s first major attempt to forgive student debt, which relied on the HEROES Act, was blocked by the Supreme Court in 2023. 

The administration’s subsequent plan, the SAVE Plan, which aimed to cancel nearly $500 billion in loans, was also halted by the courts earlier this year.

Biden's Third Attempt At Mass Loan Forgiveness

In this third attempt, the administration is purportedly relying on a different statute, the Higher Education Act of 1965 (HEA), to implement mass forgiveness. However, the states argue that this legal basis is even weaker than the previous ones, pointing out that the Department of Education itself concluded in 2021 that the HEA does not authorize the creation of a student loan forgiveness program.

The lawsuit seeks an immediate temporary restraining order (TRO) to halt the administration’s actions, arguing that the cancellation plan violates multiple statutes and exceeds the Department of Education’s authority. The states are requesting that the court stop the implementation of this plan before irreparable financial harm is done.

The Biden administration has yet to respond to the lawsuit, but the legal battle is setup to be another test of executive authority in the realm of student debt. 

With billions of dollars at stake and the potential for widespread impact on millions of borrowers, the outcome of this lawsuit could have far-reaching implications for the future of student loan policy in the United States. However, in the short term, individual loan borrowers will still be left in limbo.

Don't Miss These Other Stories:

The Department of Education announced key details about the 2025 - 2026 FAFSA.

The Good News: the new FAFSA form is not changing from last year’s major revision.

The Bad News: it won't widely be available until December.

With that in mind, here's what you should be doing now to prepare, why you should do an estimated SAI now, and what you can do to be ready to file the FAFSA when it is available.

How We Got Here

On June 14, 2024, the U.S. Department of Education (“ED”) announced it was working toward an October 1 release date for the 2025-26 FAFSA cycle and “to ensure a smooth user experience … the form would remain consistent” with the prior year form.

On August 7, 2024, ED announced that the new form will be launched in a two-step process. On October 1, the form will be available to a limited test group of students and colleges. By December 1, ED plans to make the application available to all students.

We're also supposed to stay tuned for more information about the test group. ED promises details about how the test group will work including how applicants may sign-up to be included in the test group, which will initially start with “hundreds and expanding to tens of thousands of applicants.”

ED’s 2025-26 FAFSA updates are mostly behind-the-scenes tweaks to technical items in the charts, such as income protection allowance values as an example, that feed into the formulas for determining SAI. The inputs required from students and contributors are unchanged from last year.

How To Prepare Now To Be Ready To File The FAFSA Later

Even though the FAFSA won't be launched until later this year, it's essential you start to prepare now. Here's what you can do to be ready:

Who Should File The FAFSA For The 2025 - 2026 Academic Year?

The short answer: all students who will be enrolled in college and would like to be considered for any form of financial aid in Award Year 25-26. Even students in the most affluent households with high incomes and lots of assets could benefit from filing a FAFSA. Studentaid.gov offers excellent information about the many types of student aid offered including the Direct Student Loan Program, Work-Study Programs, and grants.

Some federal aid programs do not require students to be in low-earning households. For example, all students, regardless of their family’s financial situation or their SAI, are eligible for a Direct Student Loan. To get a Direct Student Loan, students must file the FAFSA. No FAFSA – no loan.

The Last Word

The process of planning and paying for college is stressful enough for families without the added pressure of a delayed FAFSA form. But this does not mean that you need to be paralyzed awaiting word of when the form will be available.

Today, you can prepare for the time the FAFSA form will be available by getting an estimated SAI, applying for an FSA ID and following the other tips to prepare. Time is on your side. Use it wisely.

We're approaching the end of the year, so now's the time to make plans to save on your taxes and influence your tax situation.

I'm not talking about going Donald Trump-style and losing lots of money to offset your gains. I'm talking about some practical actions you can take today that will lower your tax bill for the year.

So, without losing a bunch of money, here are ten different ways that you can save on your taxes before the end of the year.

1. Boost Your 401k Contribution

One of the best ways to save on your tax bill today is to contribute to your 401k or 403b. These accounts allow you to save pre-tax money for retirement. The result? You pay less in taxes today because the money grows tax free until you withdraw it in retirement.

For 2024, the 401k contribution limit is $23,000, but if you're over 50 years old, you can make an additional $7,500 catch up contribution.

If you're not at the limit yet, adding to your 401k is a great way to save money AND save on your taxes.

And remember, the 401k contribution limits change each year, so check them out here: 401k Contribution Limits.

2. Max Out Your Traditional IRA

Along the same lines as a 401k, you can contribute to a traditional IRA and lower your taxable income. Deciding whether to contribute to a Roth or Traditional IRA can be tough, but if you're thinking about just this year's taxes, then using a traditional is the way to go.

For 2024, you can contribute $7,000 to an IRA if you're under age 50, and $8,000 if you're over age 50.

And remember, while there are no income limits to contribute to a traditional IRA, there are income limits that might prevent you from deducting your contribution. 

Learn about the IRA contribution and limits here.

3. Max Out Your SEP IRA Or Solo 401k

If you're a side hustler, it's essential that you take advantage of a SEP IRA or Solo 401k to lower your taxable income. Side hustles are great (and here's a list of 50 you can try), but it's important to remember that most of that income doesn't have taxes withheld, so you're going to face a large tax bill on your side hustle money.

By contributing to a SEP IRA or Solo 401k, you can defer some of that money into the future and avoid paying taxes on it today. It's a great way to, not only save, but to lower your tax bill this year.

Contributing to a SEP IRA is easy, and you can do so all the way until April 15. Setting up a solo 401k is a bit harder, and you have to have your plan setup by the end of the year to be able to make contributions to it. But you can also save a LOT more money.

In 2024, with a SEP IRA, you can save 25% of your income, up to $69,000 per year. With a Solo 401k, you can save up to $69,000 per year as well!

4. Max Out Your HSA

We're huge fans of using your Health Savings Account to save for retirement. If you have the ability to max out your HSA this year, make sure that you contribute as much as possible. And remember, if you can afford it, don't get your reimbursements this year. Save your receipts and let the money in your HSA grow for you.

A reminder - the HSA is like your IRA, and you can actually make your 2024 contributions all the way until April 15, 2025.

In 2024, you can contribute up to $4,150 if you're single, and $8,300 if you're a family. If you're over 55, you also get a $1,000 catch-up contribution. Read the full HSA Contribution Limits here.

5. Save For Your Children's College

Contributing to your child's 529 plan is a great way to save for college, but it's also a potential tax benefit to you. If you live in one of the 32 states that offers tax deferred 529 plan contributions, this can be a great way to lower your state income tax bill.

While the Federal government doesn't offer any deductions for contributing to a 529, many states do. 

Contributions to a 529 plan are considered gifts, and so the limits for contribution are based on the gift tax exemption. 

You can contribute up to $18,000 per child, per year, per person gifting. So, married couples could contribute $36,000 per child, per year. There's also a 5 year contribution rule, where you can give a full $90,000 per child in one lump sum, and it counts as a contribution for the next five years.

Learn more about 529 Plan Contribution Limits here.

6. Make Energy Efficient Improvements To Your Home

If you make energy efficient improvements to your home, you can qualify for tax credits that can help you save on your taxes this year.

In 2024, you can get up to $3,200 in tax credits, depending on what you do.

The maximum credit you can claim this year is:

• $1,200 for energy property costs and certain energy efficient home improvements, with limits on doors ($250 per door and $500 total), windows ($600) and home energy audits ($150)
• $2,000 per year for qualified heat pumps, biomass stoves or biomass boilers

All of these credits can help you offset your income and can provide great savings. Learn more about these tax credits here.

7. Maximize Your Work-Related Expense Deductions

The fact is, most people are terrible about keeping track of their expenses. I'm not saying that you should spend more so you can deduct your expenses - I'm simply saying you need to keep track and deduct what's correct.

Some work related deductions that you can potentially take:

• Transportation and travel - mileage is one that a lot of people miss or forget to calculate
• Meals and entertainment
• Union and professional dues
• Uniforms, if your employer doesn't reimburse you and they can't be worn outside of work
• Work-related educational expenses, especially if continuing education is required by your job

The same rules apply if you work for yourself. For example, if you drive for Uber or Lyft, you should be keeping accurate track of your mileage and expenses related to driving. These will all offset your income and help lower your tax bill.

So, keep track of your expenses and save money.

8. Donate To Charity

Another great way to save is simply by donating to charity. Your donations of both cash and things can be deducted from your taxes. However, for 2024, there is no way to claim charitable contributions without itemizing your tax return. 

So, right now, start doing some fall cleaning, get organized, and see what you don't need anymore. Some rules of thumb include:

• Clothes you haven't worn in a year
• Old children's clothes or toys they don't use anymore
• Items sitting in your garage unused for a year

Take these items to a local charity, save your receipt, and deduct your donation on your tax return.

9. Sell Your Loser Stocks...

Now, I know I mentioned up top to not be a loser like Donald Trump and take huge losses simply to avoid taxes. But...even good investors have poor performing stocks. Now's a great time to look at your portfolio and sell some losers to take the capital loss.

This strategy is called tax loss harvesting.

It can be an effective strategy, especially if you have a lot of capital gains in your portfolio from earlier in the year.

When you do it, make sure you're being mindful of the capital gains tax brackets.

But on the flip side...

10. Wait To Rebalance Your Portfolio

This sounds odd, but wait until the new year to rebalance your portfolio. You see, many mutual funds and ETFs pay out their dividends and capital gains in December. If you sell your losers at the end of the year, simply wait until January before deploying that money.

If you buy into a mutual fund or ETF right before the distribution, you are effectively buying yourself a tax burden. Since the distributions are a part of the Net Asset Value (NAV) anyway, you're not missing much by waiting just a couple weeks.

Here's our guide to rebalancing your portfolio across multiple accounts.

Things To Consider For Next Year

There are some things you just can't change this year (maybe you've already sold some stocks or had other gains), but right now is typically open enrollment for many people. And that means there are changes that you can make for next year.

If lowering your taxable income is a goal for you, consider making these changes during open enrollment:

• Maximize Your 401k Contribution
• Choose a High Deductible Health Care Plan with an HSA
• Maximize Your HSA
• If you have children, take advantage of a Dependent Spending Account for child care costs
• If you commute to work, consider a Transportation Spending Account if eligible

What else? What are you doing to lower your taxable income each year?