This article is from “Let’s Talk Numbers” by JC Rodriguez, a personal finance coach. Rodriguez is one of The Washington Post’s Featured Voices, a co-production with independent creators.
Photo by JC Rodriguez/For The Washington Post
College is supposed to be an investment in your future. But for millions of Americans, getting the degree can also mean spending years — or even decades — paying for it.
For the latest episode of “Let’s Talk Numbers,” my series produced in partnership with The Washington Post, I asked people a question that can be uncomfortable to answer: How much student debt do you have?
Their answers showed just how different the cost of college can look from one person to the next. One person we met had about $50,000 in student loan debt from a master’s program. Another managed to get through college without borrowing at all. Others used community college, online classes, work and help from their families to keep their costs down. And for those who did borrow, getting rid of the debt wasn't necessarily quick.
McKenna Morello told me she has about $50,000 in student loan debt from her master’s program. She started her career making about $62,000 a year and is waiting on student loan forgiveness.
There are programs that can forgive federal student debt. Public Service Loan Forgiveness, for example, is designed for qualifying government and nonprofit workers who make the required payments while working for an eligible employer. But I wouldn't build an entire financial plan around eventually having your debt forgiven.
Working while you're in school or taking fewer classes at a time can extend the amount of time it takes to graduate. But if the trade-off is taking six years to finish a degree without $50,000 in student loans, that can be worth considering.
There are other ways to lower the price before you ever reach a four-year university, too. Community college can allow students to complete general education requirements at a lower cost before transferring. High school students may be able to earn college credits through dual-enrollment programs. Scholarships and Advanced Placement classes can also reduce the amount of college you're ultimately paying for. The important thing is to start thinking about the cost before choosing a school — not after the bill arrives.
Vivian Gonzalez got an early start through dual enrollment and worked while she was in college. Her experience stood out to me because getting through school without loans wasn't effortless. It required sacrifice. I could relate. When I was in school full time, I also had a part-time job delivering pizzas while completing an internship to gain experience and build my network. Those were long and mentally exhausting days.
Nahzah Blair used several strategies to keep her education affordable: She spent two years at community college, attended school online and commuted from home. Those choices aren't as glamorous as the traditional image of moving away for four years of college. Financially, though, they can be powerful.
Where you attend school matters, too. Average published tuition and fees at public four-year universities are roughly $12,000 a year for in-state students, compared with about $32,000 for out-of-state students, according to College Board figures cited in the episode. That's roughly a $20,000 annual difference before accounting for housing, food, books and other expenses. Over four years, tuition and fees alone could differ by around $80,000. So when you're comparing acceptance letters, don't just ask which school you'd most like to attend. Ask what each degree will actually cost you.
Scholarships are another area where students can leave money on the table. About 61 percent of families used scholarships to help pay for college, according to Sallie Mae research cited in the episode. Yet another Sallie Mae survey found that among families who didn't apply for scholarships, about a third said they didn't apply because they assumed there wasn't one available to them. Apply anyway.
The same principle applies to federal financial aid. Completing the Free Application for Federal Student Aid, or FAFSA, can help determine eligibility for federal grants, work study and loans, as well as some state and school-based aid. The goal isn't necessarily to find one thing that magically pays for college. It's to stack as many cost-saving strategies as possible. A scholarship here, community college credits there and a year or two spent living at home can add up.
One of the most important things I heard while filming this episode was how long student debt can follow people after graduation. An analysis cited in the episode found that undergraduate borrowers can take roughly 17 to 18 years on average to repay their loans, while graduate borrowers can take about 23 years. We met people on very different sides of that equation.
Before taking out a student loan, know how much you're borrowing in total. Look at the likely starting salaries in the field you're studying. Compare in-state and out-of-state tuition. Apply for scholarships. Fill out the FAFSA. Consider community college, dual enrollment or living at home. And ask yourself a question that doesn't get asked enough when we're talking about college: What's the least expensive way I can get the education I actually need?
Because choosing a college isn't just an academic decision. It's one of the first major financial decisions many people make.
This story is part of Verified, a newsletter that is published by Washington Post Creator, a team outside The Washington Post’s newsroom that is focused on the creator economy and content partnerships with independent creators. Learn more about Washington Post Creator.
