As we sit in the middle of graduation season during a global pandemic, it’s a good time to think about the future. Is college still a good idea? After all, many degree holders are out of work. Most graduation ceremonies are postponed. Well, there are a lot of factors to consider and a lot of options too.
– In-State Public Colleges and Universities –
New York has some of the finest colleges and universities in the country. And let’s not forget the culture, the vibe, the aura. There is truly no place like New York. Being a resident of this amazing state affords us the opportunity to chose SUNY and CUNY colleges and universities that provide the same quality education as private schools. The difference is also tens of thousands of dollars per year, literally. For example, Hunter College is about $6,500 annually for an undergrad student and Saint John’s University is about $43,200 per year. That’s a difference of nearly $37,000 per year, $148,000 over four years. Those figures are just the base price. We haven’t added books, meals or any other expenses – just tuition. A student that chooses a SUNY/CUNY school can work 10hrs a week, making minimum wage in NY and still afford to pay tuition. Imagine that! Graduating with no student loans can be simple and seamless with just a little planning.
– Stay Home –
Here’s where things can get controversial. 18-year olds who are eager to fly on their own and parents who are eager to push them out the window. It’s understandable. It’s the circle of life. But, can it be delayed a few years? The figures above do not include staying on campus. That can easily tack on another $10,000 per semester to a student’s bill, an additional $20,000 or more per year, and total an additional $80,000 by the time graduation rolls around. That is a pretty penny for an experience. And a student’s life should begin at graduation, not end. A well educated, debt-free 22-year old can travel, accept opportunities anywhere and have the world at their figure tips. But a graduate with $150,000 -$250,000 in student loan debt is likely to be limited.
– Technical Schools –
Also, traditional colleges and universities are not for everyone and that’s a good thing. This pandemic has showed anyone that believed otherwise that trade skills are essential. The majority of the essential jobs did not require a degree. Trade professions have many options as well, from employee to business owner. The added bonus is trade schools are less expensive and have a shorter investment of time.
As we move forward in this new normal, wise decisions are more important than ever. However, there are no rules. If scholarships are received then more options open up. Each family decides what is best for them. Families can also do the exercise below with the future graduate to help him or her understand the results of each option. Because the worst feeling is “I wish I would have known.”
Write down the tuition of two possible schools (feel free to add more)
Google the average starting salary for the selected major
Click here to estimate what the student loan payment will be after graduation
Google apartments in your area (or desired area) to see what rent payment the graduate can expect
Create a monthly budget. Is it doable?
If so you can relax. If not, you can reexamine. A little planning on the front end can eliminate a lot of stress at the finish line. As always, you got this!
Until next time,
Crystal
Crystal Hicks is an accountant with well over a decade of experience in tax, finance, audit and accounting in New York and Florida. Each week in Money Talks, she’ll share her advice to help individuals to navigate their financial challenges!
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