As parents, we all want our kids to have the best chance in life. The facts are undeniably in favor of college graduates in today’s modern world.  According to research by Georgetown University’s Center on Education and the Workforce, the lifetime earnings for college graduates are most definitely higher than the amount earned by non-graduates.
Their research revealed a shocking trend: In 1973, it was not common for a job to require a college education. In fact, just 28 percent of jobs required a college degree. In 2018, they expect the number to be 63 percent.
And you’ll be looking at a significant outlay every year they’re in attendance, even if it’s a local school. If they choose to go to school out of state, the fees go up.
There are, of course, many different types of colleges, and each type will vary in their fees. When you factor in all the similar schools plus all the extra costs like their room, board, books, supplies, a laptop computer, and some sort of transportation, it’s possible to calculate what you might expect to pay every year.
According to research by LendEDU, the latest average cost-of-attendance varies between school types. Including tuition, fees, and any other expenses, the cost of an education at a not-for-profit private institution is around $50,900 per annum. If you send your kids to an out-of-state public college for four years, you can expect to be shelling out around $40,000 per year. This figure also includes tuition, fees, and any other expenses.
Compare that to an in-state public college which, all in, will cost you an average of just $25,290 a year for four years. If your child goes to an in-district public college and studies for two years, your total average cost is around $17,580 a year.
Finding out how much you’re going to require for the college of your choice may not be easy, especially if you are starting to save early. An education planning calculator can give you an idea of what to aim for. Your final decision will depend on the type of college you envision as part of your child’s life journey and experience.
Saving might not be enough due to the high costs associated with sending your kids to college. According to a survey of parents who are planning on sending their offspring to college, around 20% plan to rely on student loans.
The fact that college costs can be so prohibitive while the workforce is expected to have some sort of college education, is putting a strain on the young professionals of tomorrow. Talk to a financial advisor about college costs and college saving plans, so that your children don’t get saddled with crippling student loans.
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