With college costs rising, you might be wondering: “Is this worth it?”
The short answer? It depends. Choosing the right college is about finding a balance between cost and the value it will bring to your future. Here’s how to figure it out.
1. Understand the Total Cost of Attendance (COA)
The COA includes tuition, room and board, books, transportation, and personal expenses. Be sure to account for all four years – or longer if your program takes extra time. Many colleges share costs on their websites. If you have your financial aid package, be sure to use that as a reference.
2. Step 2: Research Starting Salaries
What kind of income can you expect after graduation? Use tools like Glassdoor or ZipRecruiter to research starting salaries in your field to give you an idea of how much you’ll earn when you graduate. Some colleges also share data on job placements and earnings by major, so check your college’s website.
3. Step 3: Calculate Net Price and Debt Load
- Net Price: Subtract grants, scholarships, and work-study from the COA to see what you’ll pay.
- Debt Load: Figure out how much you’ll need to borrow and estimate monthly loan payments after graduation. This SallieMae Student Loan Calculator can help. (Don’t forget to account for costs for all 4 years or more, depending on your program.)
4. Step 4: Consider College-Specific Factors
Schools with higher graduation rates and strong internship programs often lead to better job opportunities, which can improve your chances of landing a good job after graduation.
5. Step 5: Prepare for Uncertainty
Even with a great plan, the future isn’t guaranteed. That’s why many students and families consider Student Loan Insurance. For dollars a day, it’s a way to protect yourself financially in case post-graduation income doesn’t go as planned.
6. Step 6: Think Beyond Numbers
College is about more than money. A school where you feel supported and motivated can help you thrive academically and personally, which could lead to better opportunities in the long run.
With smart planning and the right protections, your college investment can set you up for success, not just financially, but in every area of your life.
