Friday, March 26, 2010

The Truth About College Costs

The middle class is caught in the middle. The rich can afford colleges' big sticker price and the poor get generous financial aid. But how much money are we really talking about? I know it varies from state to state, but assuming you plan on attending a public university (or reasonably priced privet – yes, they do exist)


Average College Prices 2009-2010 School Year:


Public four-year $7,020 (up 7.5 percent from last year)


On the 4 year plan that’s $28,080 just for tuition and fees…

Students spend an average of about $3,200 on books in those 4 years, and transportation, room and board can add about $4,800 a year (more or less depending on region, housing situations, and spending habits)


That’s a low book average of just about $51,000 for a four year degree.


Now, don’t freak out (I can hear the cries of “we could never afford that” from all the parents), consider the following details:


Did You Know That...


32 percent of full-time students enrolled in public four-year colleges and universities attend institutions that charge tuition and fees between $3,000 and $6,000.


More than $168 billion in financial aid is available to students and their families.


About two-thirds of all full-time undergraduate students receive grant aid. In 2009-10, estimated aid in the form of grants and tax benefits averaged about $5,400 per student at public four-year colleges.


What's there for the middle class? One option: try for scholarships awarded by non-profits and wealthy individuals. This is good for all levels of economic status, but the middle class tend to need it most. Don’t ever pay for access to scholarship database or website. Remember if they ask for money, then they want yours and are not giving it away (scams are everywhere – it is really easy to make a credible looking and sounding website considering that it is an issue that effects millions every year).


Access huge databases of possible scholarships and grants free at websites like: collegeispossible.com, scholaraid.com, freschinfo.com, collegenet.com, salliemae.com, and srnexpress.com. On each site, you’ll answer questions and receive a list of relevant or possible target scholarships. Competition for such scholarships is always fierce so unless you’re a star or and “underrepresented” minority, it’s only worth applying for perhaps your ten best shots. Don’t waste time or get your hopes up too much.


The real cost of that degree after financial aid opportunities (not including the actual value of what was learned, the experiences, friends and connections made, and the fact that you can sell back the text books once your done) is somewhere around that original figure of $28,000. That’s not bad, considering the average wage right out of college across various occupations is about $31,000 and that’s just entry level jobs…

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