Is a Degree Worth the Debt?

No doubt that if you are going back to school, the tuition fee will cost you a bomb. Lets not forget about the living expenses and the opportunity cost (as you are not working). So is the debt worth for a degree? I think many of us have the same question, and in fact, there is no exact answer, as greatly depend on your study area, timing, and most importantly, your luck too. However, some data will help us to understand better:

Average US College Costs for 2007-2008 (in USD):
Private four year $23,712 (up 6.3 % from last year)
Public four-year $6,185 (up 6.6 %from last year)
Public two-year $2,361 (up 4.2% from last year)

So are the financial way to help you get your degree?

Financial Aid – loans
A college loan works just like any other type of loan and are made by banks, the government and even colleges themselves. You can mix and match various loans to pay for school.

Scholarships
In general, scholarships are awards that do not have to be paid back.

Grants
Grants are monetary awards offered to students that meet certain criteria that do not have to be repaid.

So is it worth?

According to the National Center for Education Statistics, for each year between 1980 and 2005, earnings for young adults increased when education level increased. During the same period, earnings fluctuated among those with at least a bachelor’s degree and decreased among those with less education, thus contributing to the growth in the median income gap.

The 2007 College Board Study, Education Pays, reports that individuals with a bachelor’s degree earn over 60 percent more than those with only a high school diploma. Over a lifetime, the gap in earning potential between a high school diploma and a B.A. is more than $800,000. In other words, whatever sacrifices you make to pay for your college tuition in the short term are more than repaid in the long term since having some college training or a college degree leads to making more money down the road.


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