I Love College

The future cost of higher education

Author

Jack Boudreau
April 18, 2024

The Weekly Habit

Last week we asked our audience the homeownership rate for 25-34yr olds in the United States. Only 5% of respondents selected the correct answer (41.6%).

Which college major has the highest annual starting salary?

Data as of 2023

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Degrees, Salaries & Tuition Fees

If you found your college years costly, brace yourself for the expenses your children will face.

College Still Counts

The data still suggest college degrees lead to better salaries, job security and opportunity.

Trivia Answer: Computer Science (~$87,000)

National Association of Colleges and Employers (NACE), Salary Survey, Summer 2023. For bachelor’s degree recipients.

Tuition Inflation

College costs have risen faster than any other category in recent years.

The rush to create fancy facilities to attract students, combined with reduced financial backing from states, is the reason.

BLS, Consumer Price Index, J.P. Morgan Asset Management. Data represent cumulative percentage price change from 12/31/82 to 12/31/23.

College In 2042

Over 85% of students rely and receive financial aid, but since 2013 total financial aid has decreased (-4%) while college costs have risen by 30%.

And experts expect those trends to continue in the decades to come.

J.P. Morgan Asset Management, using College Board’s Trends in College Pricing and Student Aid 2023. Future college costs estimated to inflate 5% per year, based on average tuition, fees, and room and board for 2023-24.

The Reality of Financial Aid

Grants and scholarships are helpful, but they only provide minor support to those who qualify.

  • The average grant (need based) covers $5,934

  • The average scholarship (merit based) covers $7,822

  • Division 1 athletic full-ride scholarships are only available for football (M), basketball (M&F), volleyball (F), gymnastics (F), and tennis (F).

Less than 0.3% of college grads receive enough grants or scholarships to cover all college expenses.

Only 2% of high school athletes receive athletic scholarships.

Helpful Tips & Links

Covering college expenses is a common goal for most parents, but there’s a lot to consider. I’ve compiled my favorite guides, resources, and links below.

My Key Takeaway

It’s scary to look at these figures, but don’t let them keep you on the sidelines. There are a lot of strategies to get started or catch up. Talk to your financial advisor.

Don’t have a financial advisor? Find yours at Habits!

Thanks for reading, Habits fam. See you back here next week for more.

-JB

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