Financial FitnessGeneral Information

How Much Will College Really Cost?

By February 28, 2019 No Comments

Today’s video is going to hit home personally as my youngest son is a senior in high school, and we are now starting to evaluate the differences in tuition from various colleges.  One of the questions I’m often asked, and quite frankly think about, is:

Does private four-year colleges offer more benefit than public colleges?

This is a chart (see video) from the college board of their annual estimated fall 2018 undergraduate budgets.  As you can see, the total cost of a private non-profit four-year on-campus with tuition, room and board, books and supplies, transportation, other expenses, is $52,500.  Yet, if you go down to the public four-year in-state on-campus, the tuition is approximately half at $25,890.

So, the question is, does it make sense to send your child to a private college?

I recently found an article on CNBC.com on their May 3rd, 2018 article where it says here’s how much it actually costs to attend the top 17 colleges in the United States, and I wanted to profile a couple of them.

Northwestern University, indicated, the full price of tuition and fees was $49,047, but the average net price to the student was only $28,155, and the median salary 10 years after they went into college was $65,900.

The full price tuition and fees at Duke university is $49,241, but the average net price to the student is 34,137, and the median salary 10 years after they started college was $77,900.

Massachusetts Institute of Technology, or MIT, full price of tuition is $46,700 with the average net price at $22,968, but the median salary 10 years after they started college is $94,200.

So while the initial price appears to be very high, what it appears is that, due to scholarships and various grants, a lot of these bigger universities, the tuition is almost half of what it is to start out.

There was also an interesting study by the Graduate of Management Admissions Council that the applications to U.S. business schools totaled 140,864 in 2018, a decline of 6.6% from 2017 when there were a total of 150,749 applications.  Business schools attribute the drop in enrollment may be the result of increased student loan debt.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  All performance referenced is historical and is no guarantee of future results.