College Debt: the Pit Gets Deeper

With my grandson going to college this fall, we've been grappling with how to pay for it without his having to accrue heavy loan debt. As his grandparents, our fixed income just doesn't stretch far enough to help him, so he's on his own. I'm always hearing from Boomers like me, "I paid my way through, and I paid off my loans." blah blah blah ad nauseum

So, I decided to do a college cost comparison with 1970, the year I graduated from an in state public university (the cheapest option, aside from two years of community college/two years university). Well, here's the reality:

1970: tuition for a year: $394; (adjusted for inflation, that would be $3,198.51 today.)

             tuition, fees room and board for a year:  $1410 (that would be $11,435.46 today.)

             total cost for 4 years if you live at home: $1,576 ($12,905.00 today)

             total cost for 4 years if you live on campus: $5,640 ($46,765 today)

Actual cost: 2025

           tuition for a year: $11,610

              tuition, fees, room and board for a year:  $27,146

              total cost for 4 years if you live at home:  $46, 440

              total cost for 4 years if you live on campus:  $108, 584

According to an article I read in Forbes, college tuition rates have risen higher than medical services, childcare, and housing. The reasons are - administrative bloat (how about those multimillion dollar coaches' salaries?), overbuilding of campus amenities (those fancy stadiums and luxury dorms?), and the easy availability of subsidized student loans.  Even if parents have saved, odds are their savings will make a small dent as college costs rise faster than sour-dough bread in a hot oven. Most parents who didn't go to college and most 18-year-old kids don't understand that their salaries entering the workplace will not be commensurate with their financial burden if they borrow heavily. First generation kids, especially, are just excited that they will have the opportunity to create a better life for themselves, and their parents agree. But when the bills start rolling in, many graduates are forced to go back home after graduation and postpone their financial independence. Marriage, a home, even a new car, are a distant dream.

Yet, when my grandson received his financial aid package for 2025-26 from his prospective university, it included 2 subsidized loans.  Fortunately, he knows that avoiding loan debt is his highest priority. He has always worked HARD and with his job and scholarships, he should have enough money to get by next year.  The following years will be an ongoing challenge.

I encourage all parents AND prospective college students to watch the documentary Borrowed Future:  How Student Loans are Killing the Dream... take notes, and then watch it again.  Go into higher education with your eyes wide open. You won't regret it. And I encourage Boomers like me grousing on social media about the current student debt crisis to shut up and be grateful they got their degrees on the cheap.