At first glance, the cost of attending college may seem staggering.
“For 2023–2024,” reports the College Board, “the average estimated budget (tuition and fees, room and board, and allowances for books and supplies, transportation, and other personal expenses) for full-time undergraduate students ranges from $19,860 for full-time, one-year in-district students and $28,840 for four-year, in-state public students, up to $46,730 for four-year, out-of-state public students and $60,420 for four-year, private nonprofit students.
In its report “Trends in College Pricing and Student Aid 2023”, the University Council included a graphic showing these numbers broken down by their components.
For example, the estimated average cost of attending and living at a four-year public college in your state is $28,840, which includes tuition and fees of $11,260; $12,770 for housing and food; $1,250 for books and supplies; $1,290 for transportation; and $2,270 for other expenses.
The estimated average cost of living and attending a private four-year college of $60,420 includes tuition and fees of $41,540; $14,650 for housing and food; $1,250 for books and supplies; $1,100 for transportation; and $1,880 for other expenses.
If these price estimates remain constant for four years, it will cost $115,360 to earn a degree from a public state college. The four years spent earning a degree at a private college would cost $241,680.
In October, using data from real estate firm Redfin, Forbes Advisor released a breakdown of average home prices for September this year in each of the 50 states. “Redfin’s data,” a Forbes adviser said, “includes all home types, including single-family homes, apartments and townhouses.”
“In the state with the cheapest housing market, the average home price was $229,000 in September, according to Redfin’s monthly housing data,” Forbes Advisor reported.
It happened to be Iowa, where the Republican Party’s presidential caucuses will soon be held.
In Ohio, the median home price was $235,000. In Michigan it was $253,000. In Maryland it was $410,000; in Virginia it was $413,000; and in Arizona it was $435,000.
A married couple who each graduated from a four-year private college and spent $241,680 ($483,360 total) would spend less to buy a median-priced home in Maryland, Virginia or Arizona than to earn a college degree.
Fortunately, according to the College Board, many Americans who attend college do not pay the full estimated cost.
“In 2019–2020,” the College Board reports, “31 percent of full-time students at public four-year colleges received a scholarship sufficient to cover tuition and fees, including 64 percent of students from families with incomes less than $40,000 and 9 percent families with incomes of $120,000 or more.”
“In 2019–2020, 18 percent of full-time students at private, nonprofit four-year institutions received an grant sufficient to cover tuition and fees, including 35 percent of students from families with incomes of less than $40,000 and 7 percent of students from families with incomes below $40,000. at least $120,000,” the report says.
“In 2022–2023, undergraduate students received financial aid averaging $15,480 per full-time equivalent (FTE) student: $10,680 in scholarships, $3,680 in federal loans, $850 in education tax credits and deductions and a $90 Federal Work-Study scholarship,” it said.
So what is the payout for someone who studies and graduates – even if they never receive a scholarship or loan?
As this column has previously noted, college graduates earn significantly more than non-college graduates. Census Bureau household income data (Table HINC-01) from the Current Population Survey show that in 2022, the median income for households in which the household owner had earned a bachelor’s degree (but not higher) was $108,800. In turn, in households where the owner had only a high school education, the average income was $51,470.
The median household income of those with a bachelor’s degree was $57,330 higher than that of those who only completed high school and did not attend college.
This difference in median household income of $57,330 is almost equal to the College Board’s estimated costs of $60,402 for the current school year at a private four-year college.
As this column pointed out last year, when the Census Bureau released 2021 household income data, the 2022 data again show that median household income increases as household education increases.
The median income for households where the household owner started but did not complete high school was $35,470 in 2022. For households that graduated from high school but did not attend college, it was $51,470 . For homeowners who earned an associate’s degree, it was $74,920. For college graduates, it was $108,800. For those with a master’s degree, it was $128,000. For those with a Ph.D., it was $151,400; and for those with vocational education it was $157,800.
Yes, college is worth it – financially.
Another issue – and ultimately more vital – is the moral and intellectual value of attending a particular college.
A truly great four-year college will leave its graduates not only better informed, but no less virtuous than they were the day they first stepped onto campus.
