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College is likely to be one of the largest - and best - investments you will ever make.
Module Transcript
There's no question that learning about financial aid can be confusing and even overwhelming at times. There's a lot to know, and too many students do the least possible when researching financial aid options. Students may assume that some schools are too expensive or that their families are too well off to qualify for aid. These are misconceptions that could cost you thousands of dollars, and may even keep you from attending the best school.
To get a "good deal" on college you must, above all, make the educational investment that's right for you. Public or private school? Close to home or across the country? Majoring in business or studio art? These are decisions you and your family will have to make based on your goals and resources.
Before we discuss the sources of financial aid, let's take a moment to look at the true costs of a college degree.
The True Cost of College
As a young person, your college degree will probably be the single largest expense of your life so far. Today, few students, even those who receive help from parents, are able to graduate from college debt free. So where does all that money go? Here are the top three expenses:
- Tuition and Student Fees - depending on your school, the total from these fees range between $20,000 and $80,000 or more over four years. The higher cost is for private school.
- Living Expenses - Whether you live in a dorm or an off-campus apartment, food and shelter will cost between $24,000 and $48,000 over four years, depending on the location of your school. Luckily, you can keep your expenses as low as possible by wisely managing your money, which is the focus of Chapter 3.
- Books and Other Expenses - With some textbooks costing over $100 each, an $8,000 to $10,000 budget over four years is reasonable.
This means the average 4 year college degree costs somewhere, in total, between $56,000 and $120,000. And that doesn't include living expenses during the summer months, additional tuition increases, interest on student loans, or credit card debt.
Making the Investment
There's no doubt that college is expensive, but a college education is one of the best investments you'll ever make - one that will repay itself many times in the form of higher wages and vastly increased job opportunities for the rest of your life.
In fact, according to the College Board, you can expect to earn about one million dollars more over your lifetime if you have a college degree!
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