Most college students have little to no awareness of what their budget will be upon graduation, and don’t have any real idea of how much money they’ll have to spend in a given year. This lack of knowledge could cost your future self more than your tuition, this is why we highly suggest students to use a student loan calculator before making the decision to take out a student loan, visit this link here for further information.
If you’re unsure how much money you’ll have, you can use our free money-management tool to estimate your costs for attending college. If your estimated costs are less than $35,000, we’ll show you how to pay them, so you can be on your way to a manageable degree plan. If you fall into the lower range, we’ll show you how to get the most out of your education.
Don’t have any idea how much you’ll be spending on education? Try our free calculator to learn how much you’re really paying now to fund your education.
Why College Costs
Tuition is expensive because everyone wants an education, but not everyone has the ability to pay tuition. The costs of attending college are so prohibitive that more than half of all American college students are students of low socioeconomic status or no socioeconomic status at all. College students who do not have the necessary financial resources to pay for college will graduate with tens of thousands of dollars in debt. So before you start planning a college education, you should know what your options are. This guide covers the financial costs of attending college in the US, but most students will be able to choose from a wide variety of degrees, including a number of affordable ones.
Is College Worth It? Costs for many majors are rising at higher and higher rates. These rising costs are creating what many are calling “postsecondary debt,” a term that was developed to describe the accumulated cost of college by looking at the debt of students from years prior to when the cost of college was significantly higher. While the federal government provides a small amount of direct financial assistance to qualified students, the debt burden for most students is growing, even though student loan interest rates have been steadily declining. Tuition for public colleges and universities is now averaging $9,800 a year for in-state undergraduates, up from $6,100 in 1990. This means a student would need an income of about $40,000 a year just to pay off the average amount of student loan debt. The average student loan debt in the United States is now about $28,000. It takes about 14 years for a typical college student to pay off that amount of debt, and the average graduate has some $25,000 in debt.
In-State Tuition: $9,800
Graduate Tuition: $25,000
Average Cost to Pay off Debt: $28,000
Student Loan Debt: $28,000
Why You Should Be Borrowing Money for College
But let’s talk about how much it costs to actually go to college. The average price tag for a year of undergraduate schooling at the country’s best public colleges and universities is about $26,300. Graduate students pay about $23,900 per year. That means that a family of four that has an income of $50,000 a year has about $36,500 in disposable income that it could pay for an associate’s degree at the average private institution. This $36,500 is just over what the Department of Education estimates that you’ll need to go to a four-year university, so you’re already well above the median family income. And you can also spend an extra $