College Costs 1992-2022

[*ochocincos*]

It's no secret that college nowadays is incredibly expensive.
Not only that, it's been ingrained in high schoolers that they need to go to college to be successful and get paid well.
As such, many take on a vast amount of college debt, really impacting them financially for 10+ years.

Let's take a look at what the average college costs were in 1992, 2002, 2012, and 2022 for an in-state, public university including room and board.
These numbers are provided from the following two sources:
https://www.usatoday.com/story/money/2019/05/18/cost-of-college-the-year-you-were-born/39479153/
https://www.collegetuitioncompare.com/state/

The reason for the 2nd link is because the first only goes up to 2018. I had to find another link to find this year's costs.
Note that the below will list inflation-adjusted amounts too, but those are listed for early 2019 inflation. The inflation-adjusted amounts would be higher using today's metrics.

1992 - $5830 per year (inflation adjusted (IA): $10,460) - $23,320 over 4 years ($41,840 IA)
2002 - $9670 per year (IA: $13,530) - $38,680 over 4 years ($53,120 IA)
2012 - $17,820 per year (IA: $19,600) - $71,280 over 4 years ($78,400 IA)
2022 - $20,617 per year - $82,468 over 4 years

Notice the incredible difference between 2002 to 2012. That's when a good amount of Millennials were going to college.
Even without any interest on loans, someone with loans from the 2002 costs would be paying roughly $325 per month over 10 years to pay off that amount.
For someone with the 2012 amount, it'd be roughly $594 per month over 10 years.
If going to college today, roughly $688 per month over 10 years.

Adding in interest on the loans typically will add another $20-50 per month on top of the above.
This is assuming most interest rates being 6% or higher, which most students have.
https://www.finder.com/federal-student-loan-interest-rates-by-year

And while some might say that people should just go to college somewhere that offers cheaper prices (especially if they live with parents and commute vs having to pay room and board), that may not always be a great option depending on the schools in the commute area.

So for anyone who wants to criticize Millennials and Gen Z about cost of college, hopefully this helps enlighten to show that college for Boomers and most of Gen X was half the cost (or even less than that) even with inflation adjustments compared to how it's been for those going to school the past 1-2 decades.

[KillerGoose]

This, coupled with wage stagnation, is a troubling issue. People are getting out of college, starting with salaries of roughly $55,000, and having large college debt payments to pair with rent/car payments that really drain their financial abilities. I went to a community college and then a small satellite campus of a state school here in Oklahoma. My total cost of college was probably in the realm of $30,000, but most of it came out of pocket as I worked full time while going to school. College tuition sucked a lot of my money out, and this was with me living at home still.

I haven't seen any studies on it, but my thought process would be that a country has incentives to provide cheaper education to their citizens. A more educated populace, plus a populace with more financial freedom would provide economic and technological boosts. Is this not the case? Would love for someone with more knowledge than I to comment on this.

[*ochocincos*]

(06-22-2022, 12:11 PM)KillerGoose Wrote: This, coupled with wage stagnation, is a troubling issue. People are getting out of college, starting with salaries of roughly $55,000, and having large college debt payments to pair with rent/car payments that really drain their financial abilities. I went to a community college and then a small satellite campus of a state school here in Oklahoma. My total cost of college was probably in the realm of $30,000, but most of it came out of pocket as I worked full time while going to school. College tuition sucked a lot of my money out, and this was with me living at home still.

I haven't seen any studies on it, but my thought process would be that a country has incentives to provide cheaper education to their citizens. A more educated populace, plus a populace with more financial freedom would provide economic and technological boosts. Is this not the case? Would love for someone with more knowledge than I to comment on this.

Indeed.

And while many companies have adjusted their wages/salaries to accommodate college hires who have to worry about student loan repayment, it's still not adjusted enough for many.

I'll use an example for my field - tech.
When I started, most people were making $40k-$60k for entry level software jobs in Ohio.
After just a few years, I saw that number bump up by about $10k.
After about 3-5 from that, it jumped up by about another $10k.

As enough people complained that entry level was making as much as mid-level or senior-level roles, companies also started having to adjust those too.

But with wages/salaries being increased to try to accommodate college grads with loan repayment, it's almost assuredly contributed to many goods and services going up in price. Businesses will (usually) increase prices to help balance out the increase in pay they are giving to their employees.
But as you said, in some areas/fields, it's actually kinda been stagnant. So the increase in costs plus added things like student loans just makes it especially difficult.
I firmly believe that student loans are a major contributing factor to why many younger people nowadays aren't buying houses or starting families until their 30's (if at all).
And while some may say to just skip college and do a tradeskill, they might not understand that high schoolers felt pressure to go to college because of what others might think of them if they don't. As an example, my high school mentioned all the seniors' names, where they were going to college, and their major. What college you were going to became a status symbol of how intelligent (and/or wealthy) you were.

[Sociopathicsteelerfan]

I'd start off by saying that everyone for whom money is an issue (almost everyone) should really consider doing their first two years at a JC. It's much, much cheaper and then you can transfer to a four year university for your degree and only accrue two years of that debt. Your diploma will still say a BA or BS from the four year university. As for student loan forgiveness, I have some sympathy for the position. However, in no way shape or form should I, or anyone else, have to eat the cost of your college education because you made a poor decision or got a "useless" degree. You want to lower interest rates, no problem. You want to freeze interest for a certain period of time, I have zero issue with that. You want to be able to apply for a suspension of payments, coupled with a freeze on interest rates, fine. But simply forgiving all the debt, hell to the mother effing no.

I racked up an obscene amount of debt in my early twenties, to the point that I didn't have it all paid off until my mid thirties. This delayed my being able to buy a house. I had to live with roommates much longer than I would have preferred. I had to drive an average, at best, used car (I didn't buy my first new car until I was 36). I selected my account with the highest interest, paid minimums on everything else and then everything I could literally afford on the highest interest account. It took years, it took discipline, but I did it. I hear stories about people who have made student loan payments for years and owe more than they started, well that happens when you pay the minimum every month if you took out a bad loan. I know we don't prepare teenagers for financial literacy, and thus many lessons are learned the hard way. But, I'll reiterate, I'm not paying for your errors, the guy who collects the garbage shouldn't have to pay for it, the waitress at a local restaurant shouldn't have to pay it. You should have to pay it.

Quite honestly this "forgive all student loans" push is some of the most entitled and selfish bullshit I have ever seen.

[masonbengals fan]

The college students applied for and signed their student loan agreements. No one twisted their arms to take out the loans.
Your signature is your word. Your word is your bond.

[*Nately120*]

(06-22-2022, 03:35 PM)masonbengals fan Wrote: The college students applied for and signed their student loan agreements. No one twisted their arms to take out the loans.
Your signature is your word. Your word is your bond.

I'd argue that our society does twist some arms when it comes to going to college.  A lot of decent paying jobs require some expensive learning since we've exported so many manufacturing jobs. 

[BigPapaKain]

(06-22-2022, 03:35 PM)masonbengals fan Wrote: The college students applied for and signed their student loan agreements. No one twisted their arms to take out the loans.
Your signature is your word. Your word is your bond.

Predatory student loans*

But I'm sure you assume everyone should have at least a BA in paralegal before signing any contract, too. Should've read the fine print and all that BS.

[*ochocincos*]

(06-22-2022, 02:57 PM)Sociopathicsteelerfan Wrote: I'd start off by saying that everyone for whom money is an issue (almost everyone) should really consider doing their first two years at a JC.  It's much, much cheaper and then you can transfer to a four year university for your degree and only accrue two years of that debt.  Your diploma will still say a BA or BS from the four year university.  As for student loan forgiveness, I have some sympathy for the position.  However, in no way shape or form should I, or anyone else, have to eat the cost of your college education because you made a poor decision or got a "useless" degree.  You want to lower interest rates, no problem.  You want to freeze interest for a certain period of time, I have zero issue with that.  You want to be able to apply for a suspension of payments, coupled with a freeze on interest rates, fine.  But simply forgiving all the debt, hell to the mother effing no.

I racked up an obscene amount of debt in my early twenties, to the point that I didn't have it all paid off until my mid thirties.  This delayed my being able to buy a house.  I had to live with roommates much longer than I would have preferred.  I had to drive an average, at best, used car (I didn't buy my first new car until I was 36).  I selected my account with the highest interest, paid minimums on everything else and then everything I could literally afford on the highest interest account.  It took years, it took discipline, but I did it.  I hear stories about people who have made student loan payments for years and owe more than they started, well that happens when you pay the minimum every month if you took out a bad loan.  I know we don't prepare teenagers for financial literacy, and thus many lessons are learned the hard way.  But, I'll reiterate, I'm not paying for your errors, the guy who collects the garbage shouldn't have to pay for it, the waitress at a local restaurant shouldn't have to pay it.  You should have to pay it.

Quite honestly this "forgive all student loans" push is some of the most entitled and selfish bullshit I have ever seen.

This thread wasn't posted about student loan forgiveness, FYI.
I was just to give visibility into the impact college costs are having on people.
At the core, it's that colleges charge too much to go to them.
They should be cheaper to attend.

EDIT - Also, I don't think even the "forgive all student loans" stance has to be that the remaining money is funded via increased taxes. I think it could potentially be that student loans (at least federal) are declared as "dropped" after X number of years. So the loan company or whoever would just not get the rest of that money. If this were implemented, it might make loan companies think twice about giving out loans for such obnoxious amounts, which could indirectly result in colleges charging less for admission because the loan companies won't approve as much.

[*ochocincos*]

(06-22-2022, 03:35 PM)masonbengals fan Wrote: The college students applied for and signed their student loan agreements. No one twisted their arms to take out the loans.
Your signature is your word. Your word is your bond.

Technically, it's not.

One is not technically forced into paying them. They just have to deal with the financial consequences if they don't.

Regardless, do we really expect high schoolers to fully understand the financial impact this could have?
I'll tell you that I did not when I chose my college at 17 years old.
I knew it would be more to go to the college I went to over another that I got accepted to, but I didn't really understand what the monthly payments were going to end up being, what salary I should be aiming for post-graduation, etc.
My parents weren't college grads, so they didn't really have that experience to help guide me.

With that said, I fully intend to pay off the remainder of my loans, and I have paid off $60k+ of them already.

[*Nately120*]

Are student loans eligible for discharge in bankruptcy? If not, they could be and then we could all take advantage of that loophole like geniuses.

[Goalpost]

(06-22-2022, 06:01 PM)Nately120 Wrote: Are student loans eligible for discharge in bankruptcy?  

I don't think they are.  

[*ochocincos*]

(06-22-2022, 06:01 PM)Nately120 Wrote: Are student loans eligible for discharge in bankruptcy?  If not,  they could be and then we could all take advantage of that loophole like geniuses.

(06-22-2022, 06:15 PM)Goalpost Wrote: I don't think they are.  

Per studentaid.gov:

Quote:You may have your federal student loan discharged in bankruptcy only if you file a separate action, known as an "adversary proceeding," requesting the bankruptcy court find that repayment would impose undue hardship on you and your dependents.

And per http://www.michaelprimus.com/can-private-student-loans-be-discharged-in-bankruptcy/

Quote:Bankruptcy code section 523(a)(8) describes which student loans are not forgiven and by implication which are.   Any obligation that meets the legal definition of a student loan will survive bankruptcy unless several conditions are met.  The threshold question is whether your debt is a “student loan” and therefore subject to additional discharge limitations.

[Sociopathicsteelerfan]

(06-22-2022, 05:38 PM)ochocincos Wrote: This thread wasn't posted about student loan forgiveness, FYI.
I was just to give visibility into the impact college costs are having on people.
At the core, it's that colleges charge too much to go to them.
They should be cheaper to attend.

I don't disagree with the latter point, but there's literally no way you couldn't have foreseen that debt forgiveness would come up based on the nature of your thread.

Quote:EDIT - Also, I don't think even the "forgive all student loans" stance has to be that the remaining money is funded via increased taxes. I think it could potentially be that student loans (at least federal) are declared as "dropped" after X number of years. So the loan company or whoever would just not get the rest of that money. If this were implemented, it might make loan companies think twice about giving out loans for such obnoxious amounts, which could indirectly result in colleges charging less for admission because the loan companies won't approve as much.

What an outstandingly awful idea the underlined is.  Don't pay any of your debt and it will magically disappear after "X" years.  

[Belsnickel]

Here is a great article on the changes in higher ed costs/funding over the past 20ish years: https://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2019/10/two-decades-of-change-in-federal-and-state-higher-education-funding

[*ochocincos*]

(06-22-2022, 07:24 PM)Sociopathicsteelerfan Wrote: I don't disagree with the latter point, but there's literally no way you couldn't have foreseen that debt forgiveness would come up based on the nature of your thread.


What an outstandingly awful idea the underlined is.  Don't pay any of your debt and it will magically disappear after "X" years.  

I don't think that would ever be the case of "not paying any of your debt."
If you don't pay your debt on time, your credit is going to get tanked quickly, affecting your ability to purchase a home, car, etc.
You'll get affected financially way before the "X" years is reached if you don't pay anything.

Regardless, my point still stands that $500+ a month for someone in their early 20's is very difficult to pay for most degrees/fields.
What happens in a lot of cases is graduates having to defer payments and/or adjusting to longer durations for cheaper monthly payments (but higher cost overall).

Alternatively, maybe something could be passed where all jobs requiring a college education has to pay $50k or higher.
I don't know.
But it might make companies adjust their pay accordingly to account for high college costs if they want college grads.

[CKwi88]

(06-22-2022, 05:38 PM)ochocincos Wrote: This thread wasn't posted about student loan forgiveness, FYI.
I was just to give visibility into the impact college costs are having on people.
At the core, it's that colleges charge too much to go to them.
They should be cheaper to attend.

EDIT - Also, I don't think even the "forgive all student loans" stance has to be that the remaining money is funded via increased taxes. I think it could potentially be that student loans (at least federal) are declared as "dropped" after X number of years. So the loan company or whoever would just not get the rest of that money. If this were implemented, it might make loan companies think twice about giving out loans for such obnoxious amounts, which could indirectly result in colleges charging less for admission because the loan companies won't approve as much.

I believe that there is a program in place that does that for people who go into the Public Sector. I think it's something along the lines of after 10 years of payments of certain loans the balance of your loan is forgiven. 10 years is still an awfully long time to be saddled with crippling debt. 

Like virtually every other problem facing America, the solution Student Debt problem is going to be very complex. There is no single quick fix to it like blanket loan forgiveness or simply having student loans qualify under bankruptcy. It is going to take a multi-faceted approach that should also include investment in community colleges and trade schools and making sure that colleges and universities are providing their alumni with resources to find well-paying jobs in their fields. 

It is imperative that a solution is found. I think student loan debt is approaching $2 trillion. That is money that could be going into the housing market, the pockets of small businesses, passion projects, families, etc.

[basballguy]

(06-22-2022, 09:16 PM)CKwi88 Wrote: I believe that there is a program in place that does that for people who go into the Public Sector. I think it's something along the lines of after 10 years of payments of certain loans the balance of your loan is forgiven. 10 years is still an awfully long time to be saddled with crippling debt. 

Like virtually every other problem facing America, the solution Student Debt problem is going to be very complex. There is no single quick fix to it like blanket loan forgiveness or simply having student loans qualify under bankruptcy. It is going to take a multi-faceted approach that should also include investment in community colleges and trade schools and making sure that colleges and universities are providing their alumni with resources to find well-paying jobs in their fields. 

It is imperative that a solution is found. I think student loan debt is approaching $2 trillion. That is money that could be going into the housing market, the pockets of small businesses, passion projects, families, etc.

While I don't support loan forgiveness, (which this thread isn't about), I do agree the outstanding debt is ridiculous.  

I work with people that are in their 30s and still paying off their loans...these are people making 150-200/year and living in apartments because their loan minimum payments are so stupid high.  The cost of living here is still fairly reasonable too.  

I don't think you can even try to fix the debt until you fix the problem which is lower the god damn cost of education and hold universities accountable for the ridiculous fees they charge.  

[*ochocincos*]

(06-24-2022, 12:59 PM)basballguy Wrote: While I don't support loan forgiveness, (which this thread isn't about), I do agree the outstanding debt is ridiculous.  

I work with people that are in their 30s and still paying off their loans...these are people making 150-200/year and living in apartments because their loan minimum payments are so stupid high.  The cost of living here is still fairly reasonable too.  

I don't think you can even try to fix the debt until you fix the problem which is lower the god damn cost of education and hold universities accountable for the ridiculous fees they charge.  

That is the exact purpose of this thread!

Some are saying well you made the decision to go to college, and a specific college, which is true.
However, most of the cheaper colleges don't have as good of programs (or a particular major at all), so people can be forced to have to go elsewhere.
In general, the cost of college is extremely high, and in many cases the amount of incurred debt isn't outweighed by the extra money made for a job in that field.
Not only that, there are quite a lot of college students who pick a major because of what they'd be doing. Those decisions are not always based on how much money they'd make.
It's been driven into Millennials and Gen Z to do what makes you happy, not necessarily what pays well.

[basballguy]

(06-24-2022, 01:28 PM)ochocincos Wrote: However, most of the cheaper colleges don't have as good of programs (or a particular major at all), so people can be forced to have to go elsewhere.
In general, the cost of college is extremely high, and in many cases the amount of incurred debt isn't outweighed by the extra money made for a job in that field.
Not only that, there are quite a lot of college students who pick a major because of what they'd be doing. Those decisions are not always based on how much money they'd make.
It's been driven into Millennials and Gen Z to do what makes you happy, not necessarily what pays well.

I skimmed the thread but didn't see this mentioned (which is a point I think you're underselling in your comments above):

Quote:The Congressional Budget Office looked at the student debt picture in 2017. Of $1.4 trillion in total debt, CBO said, about 60% was spent during undergraduate school. The remaining 40% of outstanding student loan debt was spent during graduate school.

A quick google shows 35% of adults have an undergrad while 13% have a graduate degree.  So these poor individuals are carrying much larger debts than someone who did their undergrad (in most cases).  
 
There is tons of pressure for business professionals to get their graduates degree....mostly MBAs in my field.  We won't even consider someone for certain positions (regardless of experience) unless they have an advanced degree.  

I guess it'll also take some of corporate America to reject collegiate credentials before we really see any change.  I think I saw somewhere awhile ago that Google or Amazon was no longer requiring higher education for their positions if they had the correct experience.  

[*ochocincos*]

(06-24-2022, 02:03 PM)basballguy Wrote: I skimmed the thread but didn't see this mentioned (which is a point I think you're underselling in your comments above):


A quick google shows 35% of adults have an undergrad while 13% have a graduate degree.  So these poor individuals are carrying much larger debts than someone who did their undergrad (in most cases).  
 
There is tons of pressure for business professionals to get their graduates degree....mostly MBAs in my field.  We won't even consider someone for certain positions (regardless of experience) unless they have an advanced degree.  

I guess it'll also take some of corporate America to reject collegiate credentials before we really see any change.  I think I saw somewhere awhile ago that Google or Amazon was no longer requiring higher education for their positions if they had the correct experience.  

The cost of a masters degree is 100% why I have never bothered.
I was able to ascend in my field without one, so why incur the additional debt?

I didn't mention before what I said in my previous post because I thought it was either known or could be inferred from the OP...