4 frightening facts about college tuitionOctober 11, 2016
By Jeremy Reif, CRPS®, Financial Advisor and Owner of Point Wealth Management
The best time to plan for a college education is: The younger the better.
Here are a few facts about college expenses that are truly frightening (just in time for Halloween season.) Remember to put the power of compounding behind your college plan—the earlier you start, the more your savings will grow for your children, grandchildren, nieces or nephews. Here at PointWealth Financial Planning, we’re committed to helping you with your family’s financial planning needs.
- The cost of a college degree is high, second only to a home mortgage.
“College has never been more expensive–over the last three decades, tuition at four-year colleges has more than doubled, even after adjusting for inflation,” according to the Department of Education.
The College Board estimates average tuition and fees to be $9,410 for the 2015-16 school year at four-year, in-state public institutions, plus room and board at about $10,000 annually.
When you total various scenarios, the average cost of a bachelor’s degree ranges from $52,000-$130,000—or more!
- There’s a student debt crisis—student debt is at its highest point in history.
We’ve hit the highest level of student loan debt ever seen—the average class of 2016 graduate with a student loan will owe more than $37,172. And not only that, almost 71% of bachelor’s degree recipients will graduate with a student loan, compared with less than 50% two decades ago according to the Wall Street Journal.
- In terms of jobs, a college degree is more necessary than ever.
According to the Department of Education:
- The average bachelor’s degree recipient will earn about $1 million more in their lifetime than those without a postsecondary education.
- College graduates with a bachelor’s degree typically earn 66% more than those with just a high school diploma and are less likely to face unemployment.
- By 2020, an estimated two-thirds of job openings will require postsecondary education or training.
- FAFSA—everyone should apply, and the dates just changed
Even if you think your family makes too much money to qualify for aid, most experts say you should apply for FAFSA (Free Application for Federal Student Aid) anyway, because colleges, state scholarship agencies, and foundations use the FAFSA when deciding who gets their scholarships, as well as how much each student will receive. Students already in college should apply every year. And remember that school deadlines may be different from FAFSA deadlines.
For students college-bound in the 2017-2018 school year (as well as students already on campus), there is an important date change: the application date was just changed earlier from January 1, 2017 to October 1, 2016. Details here.
Jeremy Reif is an independent financial advisor with more than a decade of experience in the financial services industry. He is also the owner of Point Wealth, LLC, an independent fee-only financial planning and investment management firm. With advanced credentials and training in retirement planning and financial planning, Jeremy specializes in helping individuals and families pursue financial independence. Regardless of the services he’s providing, he focuses on talking openly about financial planning, the industry, common questions about retirement planning, and more to help everyday investors gain more confidence in their financial opportunities. Based in Wausau, Wisconsin, Jeremy serves clients throughout the state and can work virtually with clients throughout the country. To learn more, visithttp://pointwealthmanagement.com and connect with Jeremy on LinkedIn.