For decades, we’ve been told that getting a college degree is the key to a successful career. But, with the cost of a college degree rising faster than inflation, it’s important to pause, and ponder: ‘is college really worth your time and money?’
In the UK, the average cost of college tuition per year is £11,933 ($19,291 USD) for international students. This doesn’t include the average cost of living, which is another £6,825 (US$11,034) per year.
In the U.S., the situation is even worse. According to financial analysts, the U.S. Student Loan debt has already reached $1.2 trillion. As the crisis is unfolding, the American government has taken several steps to keep the situation under control. Today, 85% of American student loans are provided by the Federal Government. This has served as a safety measure against private lenders which have more than once scammed students with high compounding interest rates hidden in the fine print.
Despite the American government’s intervention, students considering to enroll in college should consider some of the following numbers.
Firstly, in America, tuition cost has now reached an average $27,293 per year. Meanwhile, that number is rising at 5.15% rate. If that’s not enough, most students are not succeeding to graduate within the 4-year expectation. Instead, the average student now takes about 6 years to finish his, or her, requirements.
When all is said and done, the 6 years of tuition, will cost an average $186,349. Students capable of paying back that loan within ten years, are charged a 6% interest rate, which equals an additional $61,914. The final cost of $248,263 does not include the lost income these students could have made had they gotten average-paying jobs immediately after graduating from high school.
Assuming that a high-school graduate could make an average salary for 6 years time, instead of attending college, the total amount of lost income adds up to $212,400.
So, let’s do the math.
It’s been said that the true value of an education is greater than just the monetary profit it could yield in the future. In addition, earning a college degree could set you up for a better-paying job once you graduate.
That being said, it does not seem presumptuous to state the average price of tuition could be getting a little bit out of hand.
