Losing Sleep Over College Affordability Concerns? You’re Not Alone.

Families attempting to determine college affordability can be subjected to acute bouts of insomnia.  The predicament of framing the pros and cons of each college choice for their children can be, at times, daunting for parents.  Parents face the dilemma of defining the value of a future outcome–a college degree with all of its attendant benefits–which must be paid in…

Continue Reading

A Growing Gap: Rising College Tuition vs. Income

The value of college may not be reflected in the cost of college.  However, the media attention to average student debt and annually rising college costs can mask the value of college.  In addition, when the average costs of goods and services (i.e. inflation) is greater than the average rise in earnings for 99% of Americans since 2009, the costs of…

Continue Reading

Salary: Only One Measure of A College’s Worth

“To get a good job,” is an oft heard reason why a student is headed to college, usually stated while their parents nod vigorously in the background.  A recent New York Times article–New Metric for Colleges: Graduates’ Salaries–discusses the merits of using a college graduate’s average earnings as a measure of a campus’ value, which is further illuminated with our…

Continue Reading

Paying for College vs. Saving for Retirement, Round 1

Worries about paying for rising college costs can be compounded by concerns over saving for retirement.  As seen in the chart below, with average retirement savings of people aged 45-54, the general age range of parents with college-aged children, at $10,100, can explain parents’ concerns.   The Baby Boomer group just ahead in age (55-64) has only accumulated $2000 more,…

Continue Reading

Paying for Childhood: Average Cost of Raising Children

Wondering how your parents were able to raise multiple kids (and none of you felt deprived) on a single income back in the day?  A new report by the U.S. Department of Agriculture estimates families with children born in 2012 will spend an average of $241,080 in the next 18 years to raise their offspring–NOT including the costs of college.…

Continue Reading

Student Loan Interest Rate Relief In Sight

The U.S. House of Representatives passed a bill to lower Federal student loan interest rates to 3.9% from 6.8% for the upcoming 2013-14 school year–following the U.S. Senate’s passage of the same bill last week.  The rate reduction would mean  a savings of $944.44 in interest over the life of the loan, for first year college students who borrow the maximum…

Continue Reading

College Tuition Set to Keep Rising with No Relief In Sight

 Since 1980, college tuition has risen 945%, in comparison with inflation’s rise of 193% during that same period–meaning all purchases have increased in price, but college tuition has increased at a ratio of 9 to 1–based on information from the Bureau of Labor Statistics.  The University of California (UC) and California State University (CSU) systems are no exception.  Tuition and…

Continue Reading

It’s Never Too Early (or Late) to Plan for College Costs

After talking with News10 Sacramento this morning about financial aid and paying for college, thought I’d share a few additional tips and expand on a few points we discussed: Understanding the Family’s Finances: The more parents can understand the family finances, the better planning can take place for the additional expense of college tuition.  Some expenses, like food and gas…

Continue Reading

More 25 Year Olds Have Student Debt…And At Higher Average Amounts

As seen in the chart below, the red line indicates that the portion of 25-year olds with student debt has grown from 25% in 2003 to 43% in 2012–meaning an increasing portion of young adults are choosing to “bring forward” expected future earnings to pay for a college degree. Furthermore, the black line on the chart shows that not only is…

Continue Reading