College: Skyrocketing Costs, Student Debt, and Smart Budget Choices

Student loans and the debt that comes with them are not only still in the news, but student loans have become big business for the federal government. In fact, federal student loans have nearly doubled since 2007, with the result that the US Department of Education made a profit of more than $42.5 billion in the last fiscal year. Furthermore, had Obama and Congress not temporarily lowered student loan interest rates this summer, that number would have been about $8 billion higher, thus surpassing the whopping $47.9 billion of 2011.

The other result: Student loan debt now stands at about $1.2 trillion. “That,” says Federal Reserve Chairman Ben Bernanke, “is a burden that is affecting, for example, the ability of young people to buy their first home, affecting other purchasing decisions they might make, obviously affecting their condition. General Financial”.

Meanwhile, the Bellevue University study, “The Search for Affordable Alternatives: Rising Costs and Massive Student Loan Debt Put College Out of Reach for Many,” found that:

• 68% of Americans believe that degree programs currently cost more than they are worth.
• 36% said that the costs of a title have increased disproportionately to its value in the last 5 years.
• 76% said affordability would be important to them if they wanted to earn a degree.
• 37% said affordability would likely motivate them to pursue a degree in the next five years.
• Only 40% said getting more education is worth going into more debt.
• 55% said they would only get a title if it didn’t put them in debt.

Of such results, Bellevue President Dr. Mary Hawkins says, “Students of all ages understand the value of earning a degree, but many students cannot afford to pay more than is necessary to earn these degrees. If colleges and colleges are making their programs more affordable, it will give more adults the opportunity to learn the skills they need to fill the high-tech jobs of tomorrow’s high schools.”

So how much does college cost these days? According to the College Board’s “College Price Trends,” on average:

• At public universities, in-state tuition and fees increased 2.9% to $8,893.
• At public universities, out-of-state tuition and fees increased 3/1% to $22,203.
• At private universities, tuition and fees increased 3.8% to $30,094.

Then you have to pay for room and board, as well as books and school supplies. The latter alone are estimated to add up to about $1,200 at public universities and $1,244 at private schools.

In other words, we’re talking big money here, and the costs keep rising. However, college and debt don’t necessarily have to go hand in hand. Choices matter and bargains are out there, especially when it comes to in-state tuition. Being public, not private, also makes a lot of sense.

Take a look, for example, at these three Pennsylvania colleges and their 2013-14 tuition costs:

• Bloomsburg University: $6,622 (in-state); $16,556 (out of state)
• Penn State University: $16,992 (in-state); $29,556 (out of state)
• University of Pennsylvania: $40,594

You get the picture.