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College

Sep 08
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Infographic: The Real Cost of College

By College, Money Management, Saving No Comments

So, where does a student’s money go over four-years in college?

After four years of all-night study sessions with friends, countless early morning classes, and semester after semester spent learning — with a dash of blowing off steam here and there — what does that piece of paper (degree) actually cost?

In honor of National College Saves Month in September, below is a cool infographic by AffordableSchools.net about the real cost of college and where the money goes.

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The Tried and True Expenses: Tuition and Loans

The bulk of student expenses come from school tuition — and heavy student loans for students that aren’t eligible for scholarships, grants, or other financial assistance.

  • $23,410: The average cost of in-state tuition for a public university in 2015.
  • $46,272: The average cost of in-state tuition for a private learning institution in 2015.
  • $35,000: The average amount of loan debt a 2015 graduate will have to face in the coming years.

Graduate students tend to have higher loan debt than their undergraduate counterparts, with 65 percent of 2012 graduates racking up$50,000 in student loans.

  • 59 percent of students end up not finishing their undergraduate degree, and may have up to $10,000 in debt that they are struggling–or don’t want to–pay back.

Hitting the Books

Once students have set their schedule for the semester, it’s time to purchase the required course materials.

  • One course worth of books = hundreds of dollars. Students spent an average of $313 per course on books, according to The National Association of College Stores.
  • The College Board found students paid anywhere from $1,146 to $1,244 for books in the 2014-2015 school year.
  • The cost of books continues to rise. One study found the price of books jumped 82 percent in the last 10 years alone.
  • Where to buy? Approximately 66 percent of students still buy their textbooks and college materials from their local college bookstore.
  • Other students value short term leases on learning. According to a Student Watch survey, 40 percent of college students preferred torent their textbooks rather than purchase them outright.

Plugging In

With more classes than ever going mobile, many students may prefer a tablet or laptop to keep up with class notes, research and term papers. In 2013, technology purchases for educational purposes reached $13 billion.

  • 81 percent: The average amount of students who prefer to study digitally. This marks a 40 percent increase from 2013.
  • Of 1,700 students surveyed, 77 percent indicated they felt they scored higher by using a tablet or laptop than simple class notes. Approximately 48 percent said that digital-based studying actually saved them time in the long run.

Food and Drink, A la Carte

Everyone needs to eat–and college students are typically strapped for cash. That doesn’t mean they don’t dole out cash for not-so-smart eats.

  • The price of pizza stacks up. The average college student could spend $2,000 on pizza over the course of four years, according to Mark Kantrowitz at FinAid.org.
  • Oodles of noodles: still a student staple. At 13 cents a package, ramen noodles remain a favorite for many students–it’s Japanese nickname gakusei ryori translates to “student food.”
  • Party on…to an empty wallet? Over a four-year time period, the average college student could spent $500 a year on alcoholic beverages.
  • The freshman five. Freshman typically drink five alcoholic beverages per week–which could negatively affect their academic performance.

Getting Around

Having a place to crash and a way to get around town is essential for every student.

  • $9,804: average cost of room and board at public university
  • $11,188: average cost of room and board at private university

The College Board estimates that college students spent between $2,609 and $3,242 during the 2014-2015 school year on transportation, among other personal expenses, including clothing or entertainment.

Test Time

Prepping for graduate school may begin before many college students even cross the stage to collect their undergraduate degree. Graduate level tests such as the GRE and GMAT take precious hours of study–and extra money–to ace.

  • GRE: $195
  • GMAT: $250
  • LSAT: $175
  • MCAT: $300

Other fees may also apply, including paying the testing site, or having to reschedule. Both the GRE and GMAT charge $50 to reschedule a test date.

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Aug 24
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How America Pays for College

By College, Money Management, Student Loans No Comments
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Figuring out how to pay for college can be a challenge. You know other families accomplish it, but how?

How America Pays for CollegeThat’s the question asked — and answered — in the annual study, How America Pays for College. For eight years, Sallie Mae® and Ipsos have interviewed undergraduate students and parents of undergraduate students to uncover how they’re funding higher education, the choices they’re making, the value they place on education, and more. The 2015 study reveals that:

  • College spending is up. Families spent an average of $24,164 on college — including tuition, room and board, and other direct and indirect expenses. That’s 16 percent more than last year and the most significant increase in five years.
  • Mom and Dad are #1. Parent income and savings were the top source of funding, surpassing scholarships and grants for the first time since 2010.
  • Not everyone borrows. Sixty-two percent of families reported they did not borrow for college in academic year 2014-15.
  • Students are doing their part. Working students are now the norm — 74 percent of students worked at some point to help cover costs.

According to How America Pays for College 2015, families overwhelmingly agree college is a worthwhile investment and they’re willing to stretch financially to meet the cost.

See the full report and related infographic at SallieMae.com/HowAmericaPaysForCollege and join the conversation on social media at #HowAmericaPays.

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May 29
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5 Tips for the Paying-for-College Talk

By College, Money Management, Student Loans No Comments

Paying for college may be challenging for some parents to think about or discuss. Sallie Mae shares five helpful tips on how to have the Pay-for-College Talk.

Get the facts

First, you need to know how much a year of college will cost — tuition, books, room and board, and other expenses. Once you have a number, you can begin to figure out how you’ll pay for it — or if your student needs to focus on a less-expensive school.

Make a plan

An online calculator can help you estimate costs so you can develop a plan. College Planning CalculatorSM at SallieMae.com/CollegePlanningCalc is an easy-to-use tool with an added feature for families who are considering borrowing to pay for college: important guidance on loan affordability to help them understand the impact of a monthly student loan payment on a starting salary. It includes a salary guide to help students and their families determine a manageable monthly loan payment that corresponds to the student’s anticipated annual salary.

Engage your student

Don’t make paying for college a parents-only project. If they haven’t already started, remind your student that they can save birthday and holiday gift money. Summer jobs count, too. The more they can save for college now, the less they’ll have to borrow later on.

Be open

Be honest with your student about how much you can contribute to college costs —and that they’ll be responsible for everything else, either through scholarships and grants and/or student loans. Plus, when you create your plan with the College Planning Calculator, share it with your student at each step.

Do it now

Don’t wait till acceptance letters start arriving to have the financial talk with your student. Having a plan in place and knowing how you’ll pay for college will make the overwhelming senior year an easier experience.

Create your paying-for-college plan at SallieMae.com/CollegePlanningCalc.

© 2015 Sallie Mae Bank. All rights reserved. Sallie Mae, the Sallie Mae logo, and College Planning Calculator are service marks or registered service marks of Sallie Mae Bank or its subsidiaries. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America. SMSM MKT10284B 0315