Cost and Benefits of College

The Basic Financial Equation of College: Cost Vs. Benefits

Cost:

Over the past 40 years, the average price of college has more than doubled when taking inflation into account.

The average public 4-year school now lists their total cost of attendance (which means tuition, room, and board) at nearly $20,000/year.

Benefits:

Aid from the federal government can substantially decrease the out-of-pocket cost that you pay for college based on your family’s financial need.

On top of government grants, there is also private aid - both from individual colleges and private scholarship granting organizations - which can reduce the actual cost of attendance even further.

Degree Holders Earn More

To go or not to go….to college What to consider: Choice in College Choice of MajorStarting vs. Finishing These areas are what greatly impact the

total cost of going to college.

Let’s discuss how…….

Choice of CollegeSome Colleges help you

cover the cost of attending.

As a general rule of thumb, the colleges that offer the best need-based aid are the colleges that are the most selective public and private institutions in the country.

For exampleStanford University as an example, is a highly selective university where the total cost of attendance is listed at $62,801 for the 2014-2015 school year.

For many families, this may seem completely out of reach. However, the university actually offers substantial assistance to ensure that finances do not keep you from attending.

For instance, families of students who make less than $60,000 per year and have typical assets are expected to contribute $0 for a student's tuition, room and board, books, etc. Similarly, students whose families make between $60,000 and $100,000 receive scholarships to cover the entire cost of tuition.

These generous financial aid policies are one reason that schools like Stanford see such a high percentage (95%) of their students graduate – the payoff of going to college - with an average of only $15,000 in total federal loan debt.Does this mean that you must go to Stanford or some other highly selective institution to make college economically worth it? Absolutely not!

Choice of MajorA major is a

specialization in your studies that is typically chosen by the start of your junior year (if not

earlier).

Different majors lead to different career paths and subsequently different income levels.

For example:For instance, the average engineering major earns significantly more than many other majors over the course of their career:

Starting vs. Finishing

Some students go to college

and never finish!

Students who drop out of college have substantially lower earnings, higher unemployment, and greater likelihood of defaulting on their debt than students who ultimately graduate

Benefits in finishing college

60%While college can offer a tremendous boost in income relative to cost, these financial benefits overwhelmingly go to students who finish their 4-year degrees rather than those who start the college journey but do

not persist.

Is a 4-year college a good investment?College is not for everyone

There are important decisions to be made to ensure the benefits of college outweigh the cost

Financial aid can make it affordable to attend

As a graduate you can earn far more over the course of your career

YES-college can be one of the very best investment that you can make!