The Real Cost of College
As the cost of college soars, parents and students are going deeper and deeper into debt to receive that coveted degree. Students are graduating with loans that are double and triple the income that they will bring in their first few years out of college. With the average public university costing in the neighborhood of $11,000 per year and private universities sitting around $30,000 per year (Harvard estimates $47,011 per year for their students), it’s easy to see why so many people graduate with a huge amount of debt. On top of that tuition is rising at 6%-10% annually. That means that if you spend 4 years there you are looking at an education that can cost anywhere from $50,000 to $220,000, not to mention those who go longer than 4 years.
Money Magazine has posted an article called “Take Control Of College Debt.” In it they offer several viable strategies to avoiding and reducing college debt. However I think there is a little more to look at. Consider this:
Many students have a dream of moving out of state and attending a prestigious college. That’s a great goal, but let’s look at this with a level head. First, there is a big difference between in-state tuition and out-of-state tuition. The costs at many public universities can be more than double for those who come in from another state. Before moving miles away, ask yourself what the extra $50,000 is really buying you.Even more, look at what that $50,000 really costs. Instead of going to an out of state college, put that $50,000 into a retirement account and don’t touch it for the next 40 years. Earning 12% you would come out with $4,652,548.52. How’s that for the cost of college?
What do you think? Disagree with me? Leave me a comment and let me know!
College and housing is stupidly expensive in the US, even more, education in the US isnt any better than in other countries.
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