The cost of college has become a hard pill to swallow for many prospective college applicants. Anxiety over payments has become stressful enough that students are pursuing other options or taking on more loans.
The average cost of college in the United States is $38,270 per student per year, including books, supplies, and daily living expenses. For a four-year in-state institution, the average cost is $27,146 per year, four-year out-of-state institution average cost is $45,708 and a two year in-district institution is around $17,439.
Some families have the opportunities and resources available to financially support students in paying for college, ultimately making the process less stressful for them. However, many students carry the obligation to pay for their full tuition alone, making them even more worried about paying for college, especially when many high school students do not have much savings to begin with.
According to a Cengage survey, Sixty one percent of four-year students are fully responsible for paying their education costs and twenty nine percent are splitting costs with parents or family.
While many students aim to be proactive with college savings, it can be challenging to balance work and school. This results in more stress, but not much money earned to allocate to a school fund. It is estimated that the majority of teenagers have one thousand dollars or less in savings, although the numbers can vary.
To pay for extravagant and expensive colleges, many students are opting to take out student loans. Loans are a legal tie for an eighteen-year-old student to pay off. To many, it is overwhelming and some decline offers from their dream institutions because of costs.
For some, they choose to avoid largely expensive institutions altogether. “College prices impacted me because I knew from the start that I wasn’t going to be able to afford going to a selective school. My options were either community college, a local private college living at home or a state college due to affordability,” said senior Hanna Dolan.
Some students claim that everything is expensive nowadays and college is no exception. However, should these large loans be so prevalent, along with the rising college prices?
The sticker prices appear intimidatingly large, but some cost can be lessened substantially by planning one’s path in high school. “Students with some of the most significant cost savings have used transfer credit guides to determine which credits they would satisfy through concurrent credit, AP credit and self-pay through the community college. These students were able to complete half of their requirements for their intended major by strategic planning early on in high school,” said counselor Ellie Curtis.
Inflation has impacted college prices immensely. From 2010-2011 to 2022-2023, the average annual tuition inflation rate at a public 4-year college was 2.64% and tuition increased 36.7%. College costs have only risen in the past years and progressively continue to climb. The more education costs, the more daunting it is on students.
Some sticker prices appear utterly outrageous to some students, but depending on which career they aim to enter, it might not take as long to pay off the costs. “When choosing a college or university, I think students should look into the return on investment. If they are going into a career where the student’s choice of college does not make a difference in their earning potential, it may make sense to go with the more affordable option. For students who are paying out-of-pocket and/or with loans, researching the return on investment is vital to ensure they are not burdened with student loan debt for several years or decades in some cases,” added Curtis.
While student loans can be immensely helpful for some students, some do not realize the importance of managing loans, hence resulting in financial stress at a young age. Some students get short minded by the thought of a college experience and take on debt, ultimately regretting it. Only fifty-five percent of millennials ages 30-44 with bachelor’s degrees feel that the pros outweigh the education costs.
For many students, it is suggested that they fully evaluate their postsecondary options before taking on large financial responsibilities with some institutions. “I recommend deciding what field you want to go into before deciding whether or not to pursue higher education. Find shadowing opportunities, internships or apply for an entry level job in that field before you make a decision,” commented Dolan.
Due to the intimidating costs and abundance of decisions regarding postsecondary plans, the amount of students choosing to not attend college has slowly increased. Colleges and universities have experienced a fifteen percent decline in enrollment between 2010 and 2021. Even beyond the COVID-19 times, the numbers stay somewhat consistent.
For some, loans may be the ultimate pathway to achieving the educational plan they intend to pursue. However, loan guidance is suggested. “Each student’s financial situation is unique, but student’s should not over-borrow. The general rule of thumb is that students should not borrow more than the amount of their salary in their first year of work. If the entry-level salary in a field is $45,000, students should not borrow more than $45,000. Following this borrowing guideline can help to make monthly student loan payments more manageable,” added Curtis.
College prices seem daunting to many high school students, but it is ultimately up to the student as to what path is right for them. Exploring payment options, taking out loans and researching how to minimize costs through the school specifically can benefit the student undoubtedly. College stress and anxiety can be navigated by establishing career goals, research and seeking assistance from one’s resources.
The college price trends continue to increase, but many students are unaware of the abundance of options and opportunities in front of them. Balancing payment stress and student life is achievable if a student sets their mind to it.
