Is the Cost of College Priced Out?
3
As of 2008, according to The United States Bureau of Labor Statistics, 31.4 percent of high school graduates still did not enroll in college by October of their graduating year. College is becoming more like placing a bet; the odds are definitely stacked against the average student. Karen Wise, author for Businessweek, readily questions if college costs are reaching a breaking point. As college costs rise, students from affluent families are more so playing with house money, and ‘poorer families’ are genuinely struggling to put just one child through college. The rise in economic burden is explored in the infographic link at the conclusion of the article.
While one might be weary of betting on their own future, being that they are only high school students, the payout of graduating and then getting a job is a chance at a lifelong payout. It’s tough to risk gambling it away on a bad decision. Placing a higher initial bet, or in other words taking out student loans for a better degree, could mean much more to lose and even more to pay back if it does not work out. A college sees their students as small investments, while a student sees their college as a lifelong opportunity.
According to The Official ACT website. The three most important things to consider when choosing a college are:
1) How much debt you’re willing to take on
2) How well you are able to perform without guidance,
3) Location
College degrees are being priced out when this sort of proper planning does not occur. The term ‘proper planning’ refers to several preparatory measures taken to ensure an adequate outcome when college is finished.
Those who are weary over debt are the first to decide a college degree is not worth the cost. Those who are weary over debt let the media berate the cost of universities. Those who are weary over debt let the word spread that college is now ‘priced out,’ and no one thinks of the alternatives. Massive amounts of debt can be overcome several different ways. Of course the first and most pain free way is to apply for scholarships. If scholarships do not cover everything, or you didn’t do so well in high school, then another option is grants. By looking for money that you don’t need to pay back, college becomes less stressful, and more enjoyable.
An acceptable amount of debt would be half or less than the starting salary you will earn in your career. For example, you should ideally only have thirty six percent of fifty thousand dollars (your starting salary) in debt, which equals out to eighteen thousand dollars. Considering this, the average American college loan debt is almost thirty thousand dollars. Assuming that you have a twenty year repayment plan, you’ll be paying about eight dollars a month for every thousand dollars you owe.