Things to consider
There are many compelling reasons to attend college —primarily the fact that graduates have more earning potential. Additionally, many jobs today require a degree. It’s important for parents and kids to have open conversations about the earning power of various professions, as well as potential student debt.
What you need to know
Why go to college:
- Better employment opportunities — a college degree significantly increases your employability
- College graduates take home 84%¹ more than people with only a high school diploma
- A bachelor’s degree could earn you $2,700,000¹ more in a lifetime than a person with only a high school diploma
Understand the earnings power of various professions vs. the potential debt / cost of various degrees.
What it means
In 2015 the average cost of a four-year in-state degree was approximately $78,1926
. If you have to get a student loan, the average interest rate is around 5.5%*. This means the cost of your average four-year in-state degree, will actually cost $102,673 at 5.5% over 10 years. That same $78,192, assuming 6% annual increases in college expenses, will cost $223,186 in 2033. Assuming the same loan structure, that loan would total more than $293,062 in the future.
How do you pay for college?
Work with your advisor to determine how to pay for college in a way that is best
for your personal situation.
Work with your financial advisor to help estimate the cost of college and build it into your financial plan. Then your advisor can assist you in establishing a college savings plan and include it in your overall strategy.
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