Entry #10: The Cost of Education

          The United States of America, land of the free. People from all over the world come to our country for opportunities, like better education. Home to some of the top-ranking institutions, it's no surprise that the United States is widely considered one of THE best places to migrate to pursue higher education. But what many don't know is how much a community college and/or a university actually costs. The price isn't something to brush off lightly. It can cost a pretty penny to attend these institutions and take their courses. Let's talk about it! Grab a notebook and maybe a quick cup of coffee; everyone knows college students need one.

          There are many variables when considering the yearly cost of tuition, but according to the Education Data Initiative, the average cost of college in the United States is $38,270 per student per year, including books, supplies, and daily living expenses. Times that by four to accommodate a bachelor's degree, you get $153,080. To make matters worse, college tuition isn’t immune to inflation. Every year, the cost of tuition is rising, even if just slightly. A good estimate of this inflation would suggest that tuition will increase about 8% per year. An 8% increase would then bring the previous average to approximately $47,838 per year. Committing to college is a huge financial investment, one that shouldn’t be considered lightly. Luckily, if you require assistance, you may be in luck.

          Although college tuition does cost quite a lot of money, you don't have to worry about paying all of it out of pocket. Two of the most common ways students pay for college are through money such as grants and scholarships, and loans. Let’s look into these two forms of payment.

• A scholarship is a form of financial support that is awarded to a student to help cover the expenses of their tuition. These are typically granted for academic achievements, extracurricular involvement, and other criteria. Scholarships do not have to be paid back.

• A grant is a form of financial assistance provided by the government. Many types of grants can be, well, granted to a person. It is classified as federal student aid. To begin applying for grants, you can fill out a Free Application for Federal Student Aid (FAFSA). Grants do not have to be paid back

• A loan is borrowed money that comes from the federal government. You are required to pay back loans with interest after you finish school.

          I’m sure you’re familiar with the term student loan debt. This debt is what you accumulate after taking out student loans to help pay for college. Approximately 43 million individuals are in debt, and the student loan portfolio exceeds $1.6 trillion. That’s about one out of every six adult Americans who took out federal loans to help pay for their education, and haven’t paid them. The problem with these loans is that they have interest on them. What is interest you, may ask? Well, interest can be considered either a fee for borrowing money or a payment for lending the money. This interest is calculated as a percentage, and different types of loans have different interest rates. The basic gist is that interest accrues daily and gets added to your total amount of money owed. This interest may capitalise if left unpaid and add to future interest rates. It’s important to do your research, especially when it comes to college, and even more so when it involves your money and future commitments. 

          The cost of college in the United States can feel overwhelming. Between rising tuition costs, daily living expenses, and the long-term impact of student loans, pursuing your dream degree is undeniably expensive. But college is so much more than a price tag; it’s an investment in personal growth and opportunity. Understanding these costs and the resources present to help manage them, you can take control of your future responsibly. If you plan to pursue, or continue, your educational journey, it would do you well to research thoroughly and make sure you are aware of all of your hello resources. Being informed about the different financial aid options offered to you will help secure a path that supports both personal goals and financial well-being. Thank you for reading this week's blog post. It's truly been an honour to take this course with you. I would say to check back in for more, but that probably won't happen this time. Thank you for being a weekly reader of the Phoenix Times. Jordyn H. is signing off.