Paying for college for your child to attend is a challenge for parents and students equally. The main challenge is the financial one which sometimes requires many sacrifices. Prospective students worry about choosing a school that is too expensive for their parents to pay for. College planning must, therefore, start early to manage investing for college in order to cover the costs that are implied in such a form of education. On average, students and their parents have to pay between $20,000 to $34,000 per year. These costs are smaller when it comes to in-state colleges, and they reach the highest point for the out-of-state ones. Therefore, many students get loans for tens of thousands of dollars from the state or private companies to cover their degree. And these loans become long-term debts that might be a struggle to pay off.
But there is a secret that will help students paying for college save money and also cover their debts faster. It is all about choosing the right state, not only the type of college and major that they want but where they may want to live after graduation. Students should consult the Return-On-Investment (ROI) of each state and use that as a guide to help with their college selection process. It could help them cover student loan debts in three years or less after graduating. In a state like Wyoming, a graduate can triple their initial investment in a college degree within five years of graduating. There are many other states where in-demand careers will offer a friendly ROI and ease the student’s debt over the years.
After Wyoming, New Mexico offers an ROI of 151 percent of the initial investment and Arkansas 120 percent. The top is continued with Texas with 114 percent and Georgia with 105 percent ROI value. States like Arizona or California offer 102 percent ROI while Alabama and Alaska offer 96 and 95 percent. The last place in the top of states with best ROI value is Montana with 92 percent. But this is a lot better than other states that require more than five years of payments! A college degree can be easy for one’s professional and financial life if it is picked carefully. So, all the research is needed before diving into such an important decision.
On average, having a college degree will ensure a better salary for the student. It can result in an almost $20,000 addition to the annual salary. In general, the investment made during college is paid off in 3.7 years. However, applying for colleges in the top ten ROI value can help students recoup their investment in 2.6 years. Paying for college with smart college selection is an incredible benefit for any student’s financial future. Also, it will help students avoid penalties with the state or the private companies that helped them through college.
The tuition is not decreasing as years pass by. It is increasing by six percent annually, and this is a very reasonable concern of parents and future students. It is also another reason to choose a more affordable college in some cases instead of a private one. Studies show that the career of the students is not influenced by this decision and saving money should also be a priority. As the college tuition and student loan debt totals rise across the country, college students are progressively looking to minimize their college costs and possible debts.