Planning for College Costs
College costs have gone up significantly. 2009 saw low-income families paying $17,404 for college while high-income families were shelling out over $34K. By 2017-2018 low-income families were paying over $28,400.
The average amount saved for college has risen by over 10 percent since 2016. [3] That’s positive news given the fact that one in five adult Americans has some sort of student loan debt. That adds up to over 44 million people who owe money for their education.
Setting money aside, or investing so that you have enough to pay for college, is something that needs to be done. The facts don’t lie. [4] Having a college degree increases your earning potential.
Workers who have a college-education earn about $32,000 more every year than a worker who only has a high school diploma. College graduates make a $1 million more over their lifetime than people who don’t have a higher education. They are also less likely to become unemployed, and they weathered the last recession much better than their counterparts who had just a high school diploma.
Going to college is not something that should be taken lightly if there are this many benefits to it. The idea that student loan debt is a scourge might not be entirely accurate. [5] If you weigh the pros and cons, it seems like having a debt of $38,390 is not as bad as it sounds given the high earning potential that is unlocked by a college education.
Even if you take into account that some owe over $100,000, the amount they will be earning over their lifetime more than makes up for the debt incurred.
Saving will lessen the sting of the debt you’ll need to shoulder. It could eliminate it altogether. If you want to live off the land or become a fisherman, you won’t need a piece of paper that says you went to college.
If you are entering the workforce and looking for a career, like most modern Americans, saving for college and getting a degree is not just a good idea, it’s almost impossible to deny the good it will do you over your lifetime.
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