Types of College Costs

6th GradePostsecondary Costs #2

Pre-Test

1. What does short-term spending on a postsecondary degree lead to?

2. What are the main types of college costs?

3. How much does it approximately cost to attain a Master’s degree?

Objectives

• Introduction to ways to pay for college• More on this subject next week

• 5 main types of college costs• How much does it cost to go to college?• Is it worth the money?• College Costs vs. Lifetime Earnings

Paying for College

• Short-term spending leads to – Long-term benefits

• Paying Colleges Directly • Savings• Family Contribution

• Financial Aid• Grants• Scholarships• Work Study• Loans

5 Main Types of College Costs 1. Tuition and Fees2. Room and Board• Must pay for housing & food even if not in college

3. Supplies• Average cost around $500 a year (varies by major)

4. Personal Expenses• About the same cost as youth not in college• Insurance (many students can be on parent’s policy)

5. Transportation• Less expensive if attending in-state college

Pick a Partner

• In which five areas do you think you can help keep college costs down?

Average College Costs

• Associate’s degree• Tuition and Fees: $8,000 (2 Years)

• Bachelor’s degree• Tuition and Fees: $60,000 (4 Years)

• Master’s degree• Tuition and Fees: $90,000 (6 Years)

• Doctoral degree• Tuition and Fees: $170,000 (10 Years)

• Professional degree• Tuition and Fees: $190,000 (11 Years)

Is it Worth the Money?

Lifelong Income by Degree

Source: U.S. Government Info, About.com

College Costs vs. Lifetime Earnings

• Associate’s degree• Tuition and Fees: $8,000 (2 Years)• Wage Increase from H.S. Degree: $550,000 (Lifetime) • Added Lifetime Income: $542,000

• Bachelor’s degree• Tuition and Fees: $60,000 (4 Years)• Wage Increase: $900,000 (Lifetime) • Added Lifetime Income: $840,000

College Costs vs. Lifetime Earnings

• Master’s degree• Tuition and Fees: $90,000 (6 Years)• Wage Increase: $1,300,000 (Lifetime)

• Doctoral degree• Tuition and Fees: $170,000 (10 Years)• Wage Increase: $2,200,000 (Lifetime)

• Professional degree• Tuition and Fees: $190,000 (11 Years)• Wage Increase: $3,100,000 (Lifetime)

Pick a Partner

• What type of degree to you plan to attain?

• Compare the cost of that degree and the increase of earnings over a lifetime

• What advantages do you see in attaining that degree?

Classroom Discussion

• What type of degree to you plan to attain?

• Compare the cost of that degree and the increase of earnings over a lifetime

• What advantages do you see in attaining that degree?

Post-Test

1. What does short-term spending on a postsecondary degree lead to?

2. What are the main types of college costs?

3. How much does it approximately cost to attain a Master’s degree?

Review

1. Short-term spending on a postsecondary degree leads to

– Long-term benefits2. Main types of college costs– Three of the below• Tuition/Costs, Room/Board, Supplies, Personal

Expenses, Transportation3. How much does it approximately cost to attain a

Master’s degree?– $90,000