During this time of the year, office water cooler conversations often focus on college athletic competitions—who won, who came close, and why. Indeed, predicting football bowl lineups and champions has almost become a national obsession.
Other important subjects are also on the minds of many families at this time, especially those with students who have aspirations to continue their educational pursuits beyond high school. Near the top of their list of concerns are matters such as qualifying for admission to particular colleges and the costs. In that regard, there’s good news and not so good news on both fronts.
Nearly 250,000 students graduated from Texas high schools this past spring, representing about 8.21% of the 3.04 million who received their diplomas across the nation. Over the next decade, the number of Texans graduating will creep up to around 287,300. Based on the average proportion of US high school graduates who enter college, institutions of higher education located in Texas and other states will welcome approximately 129,000 new students from Texas in 2016.
With more than 4,200 public and private colleges and universities scattered across the US (208 in Texas), there would seem to be lots of options for students to choose from to help them prepare for their futures. Of course, some schools are so highly competitive that only those with the best academic credentials are admitted. Other institutions may be out of the financial range of many students.
The average cost of tuition and fees for four-year US public colleges and universities this year is $5,491, a 7.10% rise over the 2004-05 academic year. Across the Southwest (Texas, New Mexico, Oklahoma, and Arkansas), the average tuition and fees charged at public schools is $5,005. Students are paying an average of $4,857 in the 34 public institutions in the Lone Star State. While more than $600 less than the national average, the Texas price is still 10.59% higher than last year.
The 53 two-year Texas colleges have an average price for tuition and fees of approximately $1,493 for the current academic year. The 41 independent universities are charging about $13,389 on the average.
Tuition and fees, of course, while a major portion of the overall cost of a college education, normally represent only around a third to a half of the total average expenditures that students make at four-year schools. For two-year institutions, the percentage is around 14%.
With room, board, books, supplies, transportation, and personal expenses tacked on to tuition and fees, median total costs per year at a four-year public institution in the US is currently $12,127, $29,026 for independent schools. In Texas, total costs are $15,640 for public and $22,255 for private institutions. To attend a two-year college in Texas this year, students are paying on the average a total of $10,555. These are big outlays, particularly given multiple years or multiple children.
Costs continue to rise annually, but the percent of growth has slowed somewhat from the past few years. The amount of grant aid available has also expanded, but not sufficiently enough to decrease students’ reliance on borrowing. The average loan debt a student has today upon graduation—combined public and private colleges—is about $15,500. This is certainly an investment in the future for most students as yearly salaries of those with degrees are normally higher than those with only high school diplomas or a few college credits.
Even so, the challenges caused by debt-repayment obligations coupled with the normal adjustments required by those initially entering the work place, could result in great financial and emotional strain to some graduates. Individuals facing such burdens could have difficulty establishing households, purchasing homes, or reaching the earnings they had expected.
Some of these matters are being taken into consideration as Congress is deliberating the extension of the Higher Education Act. How the final decision will play out is unknown, but for those desiring a college education tomorrow, the key to success could well be saving as much as possible today.