Shocking College Costs Revealed: Is Education Worth the Price Tag?

Facebook, Instagram, Twitter, YouTube.

MEREDITH, N.H. (AP) — With over 2 million high school students in the United States finalizing their college decisions, the rising costs of education are becoming a major concern. 

This year, several private colleges, ranging from elite institutions to mid-tier schools, have crossed the $90,000 mark for tuition, board, meals, and other expenses, with some even exceeding $95,000.

However, the true cost of college is more complex than these figures suggest. Many colleges with substantial endowments are increasingly focused on making education accessible to students from diverse economic backgrounds. 

For lower-income families, the actual cost can be as low as 10% of the advertised rate, making attendance at a selective private college sometimes more affordable than a state institution.

Phillip Levine, an economics professor at Wellesley College, emphasizes that while $90,000 is a significant sum, it's not what most families will pay. 

Generous financial aid packages can significantly reduce this cost. 

Wellesley College, for instance, where costs for wealthy students will exceed $90,000 this fall, provides an average aid of over $62,000, reducing the net cost by two-thirds for nearly 60% of its students.

However, this year, many prospective students are facing delays and uncertainty in receiving financial aid offers due to issues with a new U.S. Department of Education online form.

Mark Kantrowitz, a financial aid expert, describes the rollout as chaotic, citing delays, glitches, and stringent requirements for proof of identity from parents, which deter many eligible but undocumented parents from applying.

Levine's research indicates that the amount lower-income students pay at elite institutions has decreased in recent years. Still, he is concerned that the sticker shock might dissuade some students from applying to schools like Wellesley. 

He stresses the importance of making educational decisions based on actual costs rather than perceived ones, noting that the sticker price often receives undue attention.

In addition to Wellesley, other colleges with sticker prices exceeding $90,000 this year include the University of Southern California at $95,000, Harvey Mudd College in California at $93,000, and the University of Pennsylvania at $92,000, among others. 

Harvard University, with an endowment exceeding $50 billion, emphasizes its generous aid program, where almost a quarter of families pay nothing at all, and the average parent contribution is just $13,000.

It's essential to note that comparing sticker prices isn't always straightforward, as some colleges include additional costs like health insurance and travel expenses, while others do not. 

Despite these challenges, Kantrowitz believes that college is a worthwhile investment, provided students borrow responsibly and complete their studies. 

He emphasizes that dropping out can leave students with debt but without the degree to help repay it.