Why The Published Price Tag Isn’t Relevant To Your College Search
There are many factors to consider in a college search, and for most families cost is a big one. According to this CNBC article, the average college student debt is now $37,172. That is equivalent to a down payment for a home in some places (here in California you would have to settle for a decent car!)
When I meet with families starting the college search process the cost of college is often a huge worry. I get it, 78% of Americans live paycheck to paycheck according to 2017 research. Most Americans don’t have a few thousand dollars, let alone tens of thousands of dollars, sitting around. But the question most people ask isn’t leading to what they really need to know:
What prospective families ask: “How much does the college cost?”
What you really need to know: “What is the average amount of debt by the time a student GRADUATES from your school and what is the average starting salary?”
Confused? You are not alone. Let’s use a practical example to explain it.
The table below is a comparison based on the 2018-19 school year published costs for three different schools located in California. It assumes in-state tuition for the public schools (not relevant at privates), on-campus living, a nine-month academic year with full-time course load, starting and finishing at the same school (no transfers) and health insurance available through the parents’ plan. It does NOT include financial aid.
Estimated Expenses per each school’s website
| UCLA | CSULA | Santa Clara | |
| school type | public | public | private* |
| Tuition and fees | $13,225 | $6,744 | $51,711 |
| Room and meals | $15,816 | $14,508 | $14.910 |
| Books and supplies | $1,509 | $1,948 | $1,917 |
| Transportation | $432 | $1,454 | $846 |
| Personal | $1,470 | $1,480 | $2,394 |
| TOTAL COST | $32,452 | $26,134 | $71,778 |
*This is a sample and does not include for-profit institutions. Tuition varies at private schools.
At first glance, the logical choice based on cost would be Cal State University Los Angeles, right?
But what if I added in this row:
Average debt at graduation
$21,323 $23,376 $26,676
Now your answer might be UCLA looks like a better deal, right?
Would this affect your decision? Remember, longer to graduate probably means you are paying more.
What percentage graduate in four years[1]
78% 7% 87.3%
And what if I told you the average starting salary for BA grads at each of these schools?[2] (Note: varies widely by major, this is the overall average)
$57,456 $62,213 $74,915
In the end, the private school that looks the most expensive at first glance would earn the graduate an extra $17,459 in the first year after graduation. That is more than enough to cover the $5,353 in debt difference.
See what happened there? The cheapest “cost” isn’t always the best deal. The true cost of college can’t be answered with a single question. It takes more information and some easy math to figure out what is the best economic fit for you. Keep in mind, college isn’t a box of cereal that will be gone in a few days. It is a long-term investment that can pay life-long benefits.
I could write an entirely separate article addressing the indirect costs I haven’t included here. The value of living on campus and making the life-long friends who will be your future career connections and support network, the strength of the alumni association, the benefits of a large endowment, the out of classroom learning opportunities and access to them, and the list goes on. We also need to factor in potential financial aid which varies from public to private (private schools may have more grants and fewer loans). The priority in any college search should be FIT! Academic, social, and economic fit for the student and family. With almost 4,000 colleges and universities in the United States alone, there is a fit for every student, and Smart College Admissions can help you find it!
[1] Per www.collegefacutal.com data
[2] This information found on www.payscale.com
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