Profitt Report: Almost half of college grads in debt say it wasn't worth the cost
This is a busy month for families with high school kids. Graduation and possibly college aren’t far off. Before you take on student loan debt, Consumer Reports shows us how to take on college debt without going broke.
In fact, Consumer Reports says 45 percent of people who left college with debt say college wasn’t worth the cost.
A four year, in-state school will cost you more than $80,000 on average according to Consumer Reports, including tuition, fees, room and board.
“We're seeing about 70 percent of students borrow to pay for college and not everyone even graduates, they still have that debt to pay back,” said Donna Rosato, senior editor at Consumer Reports.
She said while looking at a college’s academic programs, also scout out their prices. Then, look at the earning potential of your future career. For example, ay, you’re looking at a bachelor’s degree.
“Don’t take on more debt for those four years then you expect to earn annually in those early years when you graduate,” said Rosato.
Rosato said the average graduate today will earn about $50,000 a year right out of college.
“If you do the math on a standard loan, which takes about ten years to pay off, that's about $550 a month to pay and that's a lot to handle,” Rosato said, “really think about whether you want to take on.”
Rosato said this shouldn’t scare you away from school. Instead, look at additional ways to pay.
“You may get scholarships, you may qualify for grants, a lot of schools offer what they call institutional aid, it's competitive. They want you to come to the school, they're going to offer you money to defray the costs,” she said.
There’s also the Free Application for Federal Student Aid or FAFSA. Typically, you’ll want to fill this out as soon as possible but it’s never too late, you could still qualify for some help. For more information about paying for college, please click here and here.
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