Guide to College Financing Chapter: 1 2 3 4 5

The Price of Higher Education

• Link to this page
• Get widgets
• Print
• PDF
• RSS

Obtaining a college degree can be thought of as an extended test of your resourcefulness and perseverance. It's like Survivor, only without the tribal councils and big cash prize. Your first challenge in the process may be your most difficult-figuring out how to pay for your education.

Obtaining a college degree can be thought of as an extended test of your resourcefulness and perseverance. It's like Survivor

, only without the tribal councils and big cash prize. Your first challenge in the process may be your most difficult-figuring out how to pay for your education.

Expenses on the Rise

According to CollegeBoard.com, the average cost of attending a four-year, private university in the 2006 to 2007 school year increased 5.9 percent to $22,218. This compares to annual costs of $5,836 incurred by public university students. Though less expensive, the latter increased at a faster rate-about 6.3 percent.

You don't need to be a rocket scientist to understand that these are big numbers, and they're only going to get bigger. Some experts foresee increases of 7 to 8 percent annually over the next 10 years.

Estimating Your Costs

How much will that degree end up costing you? Many schools won't automatically send you cost estimates-the numbers are just too scary. It's best to call the school and ask for estimates on tuition, fees, and room and board. Then, add in another $4000 to cover the cost of books, supplies, and that staggering expense called miscellaneous.

Now comes the tricky part. You have an estimate for the first year, but the program will likely take four years to complete. Before you multiply that first-year estimate by four, consider these additional points: What are the potential cost increases over these years? Can you work part-time to cover some of your expenses? Can you live at home to keep costs down? Will you have travel costs?

Once you can estimate the total price of attending and completing college, you should start researching scholarships or fellowships to lower your out-of-pocket outlays. Call it a sub-challenge to the larger goal of financing your education. Like a true survivor, you're going to want to outwit, outplay, and outlast.

«Previous ChapterNext Chapter»