The economy is still at one of its weakest points in years. Job growth remains scant at best, yet tuition rates at conventional and online colleges continue to soar. The National Center for Public Policy and Higher Education reported a 439-percent increase in tuition and fees from 1982 to 2007. Between dwindling opportunities for recent graduates and increasing financial burdens placed on inbound freshmen, it’s natural to wonder if college is even worth attending.
The amount of debt accumulated during college will have a direct impact on graduates’ finances. Sound financial preparation early on can help to alleviate some of the impact that student loans will have after college. Perhaps the best way for students to manage their finances and the expense of college is to begin well in advance, early in high school. Obviously it helps to get every grant and scholarship possible when preparing for college, but scholarships are typically easier to get for high academic performers. That means doing well and earning high marks throughout high school will literally save students money down the road.
For those relying on student loans, making sure to exhaust federal borrowing before considering private student loans is another way to keep the cost of college down. Federal student loans backed by the government typically come with interest rates around 4 to 5 percent lower than private loans issued by commercial lenders. This difference in interest means considerably less money will be owed over the life of the loan. Federal student loans also have more flexible terms than most private loans, so if students experience hardship after graduation it will be easier to defer or negotiate payments.
Some students may understandably prefer to avoid large amounts of borrowing during college. Nobody wants to graduate tens of thousands of dollars in debt. One basic yet commonly overlooked option to taking the edge off tuition and college expenses is to work during school. Even working just part-time or on weekends will make it possible for students to borrow less money.
If a student manages to earn just $2,000 per semester working through a four-year degree, that amounts to a $16,000 reduction of the amount he'll need to borrow. It’s not an option for everyone, especially those with sights set on graduate programs that require high GPAs. However, if working is an option, then every student should consider it as a path to leave college with less debt. In the end, a conversation that might have been unthinkable twenty years ago is now worthy of legitimate discussion: does college even make good financial sense? A recent report from Rutgers University showed that the median starting salary for graduates in 2009 and 2010 was $27,000. With many graduates being forced to take jobs that aren’t even in their fields, the outlook is certainly bleak.
Whether college is a financially sound option is going to depend upon the individual. It comes down to whether funding is available, what students can reasonably expect to earn after graduation, and whether they have other options available that might pay a decent salary without a degree.
One thing all students considering college should consider is that unemployment among college graduates is still significantly lower than high school graduates and dropouts. Regardless of cost, a college education still does make some difference in terms of finding work later on. Even though the economy is weak now, and a degree may no longer act as a total safeguard against unemployment, it will be a valuable asset to have once job growth picks up.
The amount of debt accumulated during college will have a direct impact on graduates’ finances. Sound financial preparation early on can help to alleviate some of the impact that student loans will have after college. Perhaps the best way for students to manage their finances and the expense of college is to begin well in advance, early in high school. Obviously it helps to get every grant and scholarship possible when preparing for college, but scholarships are typically easier to get for high academic performers. That means doing well and earning high marks throughout high school will literally save students money down the road.
For those relying on student loans, making sure to exhaust federal borrowing before considering private student loans is another way to keep the cost of college down. Federal student loans backed by the government typically come with interest rates around 4 to 5 percent lower than private loans issued by commercial lenders. This difference in interest means considerably less money will be owed over the life of the loan. Federal student loans also have more flexible terms than most private loans, so if students experience hardship after graduation it will be easier to defer or negotiate payments.
Some students may understandably prefer to avoid large amounts of borrowing during college. Nobody wants to graduate tens of thousands of dollars in debt. One basic yet commonly overlooked option to taking the edge off tuition and college expenses is to work during school. Even working just part-time or on weekends will make it possible for students to borrow less money.
If a student manages to earn just $2,000 per semester working through a four-year degree, that amounts to a $16,000 reduction of the amount he'll need to borrow. It’s not an option for everyone, especially those with sights set on graduate programs that require high GPAs. However, if working is an option, then every student should consider it as a path to leave college with less debt. In the end, a conversation that might have been unthinkable twenty years ago is now worthy of legitimate discussion: does college even make good financial sense? A recent report from Rutgers University showed that the median starting salary for graduates in 2009 and 2010 was $27,000. With many graduates being forced to take jobs that aren’t even in their fields, the outlook is certainly bleak.
Whether college is a financially sound option is going to depend upon the individual. It comes down to whether funding is available, what students can reasonably expect to earn after graduation, and whether they have other options available that might pay a decent salary without a degree.
One thing all students considering college should consider is that unemployment among college graduates is still significantly lower than high school graduates and dropouts. Regardless of cost, a college education still does make some difference in terms of finding work later on. Even though the economy is weak now, and a degree may no longer act as a total safeguard against unemployment, it will be a valuable asset to have once job growth picks up.
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