When I pose this question to current college students, the typical response is “I don’t know.” Sometimes students can tell me the credit hour rate or the discount they are receiving. Although they may be technically correct, that isn’t the true cost of college.
What are you putting on pause because you’re (hopefully) spending time in class or doing homework? Time with family and friends? Vacations? Hobbies? Your time is worth something, too, which means the cost of college goes beyond the sticker price of tuition, fees and books.
And soon you’ll graduate and start paying back those pesky student loans for the next ten years or so. Many people don’t realize that once you’ve taken out these loans, they are with you until they are paid in full. It’s not impossible to declare bankruptcy on student loans, but it is extremely difficult. Only .04% of people who have filed for bankruptcy have been able to get their student loans discharged!
Let’s do a thought experiment.
What if you bought a single cup of coffee every morning from your favorite coffee shop while you were in school for your four-year degree. That doesn’t seem too unreasonable right? If the average cup of coffee is $3.15, by the time you accept your diploma, you’ve spent $4,599 on coffee.
What if those 1,460 days (365 days x 4 years) of coffee were paid for using a student loan? When you’re paying that off after graduation, you’re subjected to an interest rate. If your interest rate was 4.79%, those cups of coffee end up costing $5,797.
So, how can you take steps to ensure a solid financial future?
Consider the costs.
Pursuing higher education has a high cost and a high reward. According to Georgetown University’s study on the economic impact value of college majors, the average difference between the lifetime wages of a college and high school graduate is $1 million. That’s significant.
Little decisions can have a big impact on your financial future, but so can a degree. So, consider all of your options carefully, explore your resources, and pursue financial wellness. And as you're making decisions about your future, remember we’re all rooting for you.
To learn more about your options for paying for a degree at Indiana Wesleyan University, visit our financial aid page today.