Higher education in the future? Consider cost-cutting measures before going into debt

Going to college is a pivotal time in a young adult’s life journey. It starts with the college preparatory steps of testing, touring, applying for and, finally, being accepted to the school of the student’s dreams.

Or is it acceptance to the school the student can afford? Now it’s time to determine how much the college experience will cost. Let’s dive into the sticker price of secondary education, the actual cost to attend, alternatives to consider and resources available.

Why does college cost so much?

On average, it costs an institution about $7,000 more per year to educate an undergraduate student than that individual is paying in tuition. So, who’s covering the difference? Public support, in the form of state and local governments, covers 53% of total education revenue.

If it weren’t for public support, college would likely cost more. So, yes, it could be worse. Public support, though, reached its peak in the late 1980s and has steadily declined since. So who’s picked up the extra cost? You guessed it: the student, in the form of paying higher tuition.

Tuition is often influenced by a school’s responsibilities or values. For example, in-state students receive a lower price because the school’s mission is to educate residents of its own state. Private institutions, which may have flexibility in distribution of funds, may charge students different amounts.

Research institutions may charge more due to the nature of their programs of study. Teaching salaries, pensions and differences in cost of living also affect whether costs go up or down, because while trying to recruit top students, schools are also trying to recruit and keep top faculty and administrators.

My suggestion to students? Don’t be discouraged by a school’s high sticker price. Apply to a variety of schools— including public, private, in-state and out-of-state — to see what your actual cost of attendance will be. Once you know that, consider the cost over the next two to five years and the amount of money you will make after graduation.

Is it worth it?

It’s a common misconception that everyone pays the “sticker price” for college. Use this handy college cost & compare calculator to determine the cost you may pay based on your income level and location. If the cost seems too high, consider alternative methods:

▪ Choose a less expensive school. If you’ve got what it takes to succeed, you’ll likely be successful at almost any school you choose.

▪ Start at a community college. Save some money upfront or choose a career that only requires an associate degree.

▪ Work for a company that offers tuition reimbursement. Gain valuable work experience likely applicable to your college experience.

You can also bring down costs by applying for scholarships, buying used books or simply living frugally. And don’t forget to file your Free Application for Federal Student Aid (FAFSA) every year. The U.S. Department of Education awards more than $112 billion a year in grants, work-study funds and loans to nearly 84% of college students.

Remember, though, if you want something you can only afford with student loans, I strongly encourage you to rethink. Use your resources wisely. I tell the students I work with, “Don’t create a lifestyle you can’t maintain upon graduation.”

Unfortunately, I have seen too many students create a lavish lifestyle on student loans. Those pay-back costs often delay future wants, like buying a house or starting a family.

This week’s feature, presented by CommunityAmerica Credit Union, comes from College and Career Planner Karly Scholl. To discuss higher education plans, schedule a free meeting with a College and Career Planner.