A comment following my post yesterday said “I always ask when this subject is raised is how much is the monthly repayment of the loan over the working life of the graduate? How does that equate to the monthly expenditure on a bottle of wine/gallon of gas or weekend break in Blackpool?”
The figures are different in Britain and the US, but it seemed to me such a relevant question that I did some calculations.
- The average cost of tuition per year at a US college or university is $7,000 (about £4700 at today’s exchange rates). A loan at 6.8%, to cover the cost of the 4 years it usually takes to earn a BA, would currently result in monthly payments during a thirty-year working life time of $123 or £82.
- The most expensive US universities charge $28,000 (£18666) annually, which results in monthly payments of $737 (£490) for thirty years.
These figures do not take into account the cost of food, accommodation or books which for a full-time student averages an additional $15,500 (£10,000) annually. Nor do they take into account, on the one hand, the cost of lost income during those extra educational years, or on the other, the increased income most college students do eventually earn as a result of acquiring a college degree.
I am, of course, reflecting my own experience. But I think an education to those who are qualified and eager to work for it is one of the most rewarding investments we can make in our citizens, and for our country.