Fatter 401(k)'s Might Not Be Enough to Save the GOP
The survey found that the overall cost (including tuition, fees, room, board, books, transportation, and entertainment) of a typical public college is about $16,400 a year. About half of students at public schools receive grants and tax breaks that reduce their expenses, however. With average financial aid awards between $3,000 and $4,000, the net cost is roughly $13,000. The average sticker price at private universities for this academic year is just over $33,000. But some three quarters of private school students typically receive financial aid of about $9,000.
Homebodies. Two-year community colleges are still an educational bargain. On average, tuition at such schools rose 4.1 percent this year, to about $2,300. That means students who live at home could finish their first two years of college for about $8,000, including textbooks and transportation, the College Board estimated.
The report highlighted one new trend: It's taking longer for students to graduate, raising the overall cost of a college degree. The average public university student now takes 6.2 years to finish. The average student at a private college takes 5.3 years. If prices keep rising at the current rate, even public college students who get aid would have to budget $87,000 to cover the typical cost of a degree. Those who don't receive aid could easily pay an average of $115,000. A degree from private school for those receiving financial aid would cost about $124,000. Those paying the full sticker price should be prepared to shell out about $200,000.
Thirty years ago, when the total price of a year at a public university was less than $3,000 and the average time to graduation was shorter, the total cost of a degree was closer to $12,000.
But, the College Board noted, 30 years ago, college graduates earned just 19 to 35 percent more, for men and women, respectively, than adults with only a high school diploma. Today, college graduates earn 63 percent (men) to 70 percent (women) more. In addition, college graduates have an easier time finding jobs. The unemployment rate for college graduates is just 2.3 percent, almost half the general rate. "Investing in college is worth it," says Skidmore College economist Sandy Baum, the report's author. "Your earnings are higher, and you have more occupational opportunities."
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