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How Much Does College Cost?

Posted on May 31, 2024December 17, 2024 by Melanie Datu

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The number one question that students and families ask about attending college is how much does college cost? The cost of attendance or COA is like the sticker price for college. Every year the cost of attendance goes up but merit and need based scholarships and grants may cover part of COA. College expenses could be tuition, fees, housing, books, supplies, transportation and other out of pocket expenses.

According to NCES, the estimated total cost of college at a public institution is $28,297, $49,654at private nonprofit institutions, and $26,261 at private for-profit institutions in 2022 to 2023.

How Much Does College Cost?

Each year for every state the cost of attendance keeps rising. It’s typically cheaper to attend an in state college rather than out of state. According to NCES, out of state students in the U.S. paid an average of $28,297 more in cost of attendance (COA) than in state students in 2022-23.

Also, the average cost of college may vary between public and private institutions along with two vs four year schools. Keep in mind to calculate other costs such as housing, books, supplies, transportation and other personal expenses.

Massachusetts has the highest in state average cost of college which is $67,953. District of Columbia offers the lowest in state average cost of college at $6,152. The chart below shows the average cost of four year college in each state for in state tuition and out of state tuition.

		Public College		Private College
Ranking	State	In State Tuition	Out of State Tuition	In State Tuition	Out of State Tuition
1	Utah	$15,286	$22,244	$16,003	$16,003
2	Wyoming	$14,634	$14,669	N/A	N/A
3	Florida	$15,810	$18,344	$43,140	$43,140
4	Idaho	$17,275	$24,754	$15,963	$15,963
5	New Mexico	$17,516	$21,952	$37,201	$37,201
6	Montana	$17,292	$27,435	$42,910	$42,910
7	North Dakota	$18,362	$13,973	$24,900	$24,900
8	Oklahoma	$17,909	$22,125	$40,136	$40,136
9	South Dakota	$17,459	$13,194	$36,145	$36,145
10	Wisconsin	$18,295	$27,024	$48,660	$48,660
11	North Carolina	$18,264	$23,452	$51,868	$51,868
12	Nevada	$18,293	$23,550	$38,083	$38,083
13	Arkansas	$18,803	$21,981	$33,035	$33,035
14	Georgia	$19,057	$23,345	$44,846	$44,846
15	Missouri	$20,534	$22,812	$40,501	$40,501
16	Mississippi	$19,765	$20,848	$28,712	$28,712
17	West Virginia	$20,011	$22,915	$22,236	$22,236
18	Kansas	$18,803	$21,981	$33,035	$33,035
19	Texas	$18,807	$25,419	$51,236	$51,236
20	Louisiana	$20,622	$23,395	$57,334	$57,334
21	Washington	$21,715	$31,410	$53,857	$53,857
22	Alaska	$22,063	$25,414	$28,427	$28,427
23	Nebraska	$19,851	$21,953	$37,285	$37,285
24	Tennessee	$21,061	$24,381	$42,767	$42,767
25	Indiana	$21,090	$29,269	$49,853	$49,853
26	Alabama	$21,448	$27,145	$27,835	$27,835
27	Iowa	$20,088	$28,257	$47,150	$47,150
28	Maine	$21,126	$30,099	$54,613	$54,613
29	Minnesota	$22,992	$25,238	$46,286	$46,286
30	Kentucky	$22,575	$25,325	$37,019	$37,019
31	Hawaii	$22,264	$32,043	$33,933	$33,933
32	Colorado	$23,061	$31,699	$40,791	$40,791
33	Maryland	$23,008	$27,111	$62,317	$62,317
34	Ohio	$23,552	$26,881	$48,614	$48,614
35	Oregon	$25,397	$34,292	$60,038	$60,038
36	California	$24,349	$34,454	$54,795	$54,795
37	New York	$25,082	$20,304	$60,677	$60,677
38	Arizona	$24,896	$26,025	$23,249	$23,249
39	South Carolina	$23,600	$33,217	$38,477	$38,477
40	Michigan	$25,463	$40,004	$43,305	$43,305
41	Delaware	$25,472	$32,419	$24,358	$24,358
42	Virginia	$26,507	$36,674	$35,742	$35,742
43	Rhode Island	$27,872	$32,910	$64,025	$64,025
44	Illinois	$26,993	$29,350	$50,638	$50,638
45	Connecticut	$28,816	$37,414	$60,408	$60,408
46	Pennsylvania	$27,336	$26,426	$60,218	$60,218
47	Massachusetts	$28,572	$32,291	$67,953	$67,953
48	New Jersey	$28,633	$29,681	$53,717	$53,717
49	New Hampshire	$29,381	$32,035	$33,197	$33,197
50	Vermont	$30,921	$41,914	$64,274	$64,274
51	District of Columbia	$6,152	$13,004	$62,714	$62,714

How Much Does it Cost to Study Abroad in College?

The range of programs and countries makes it hard to get an exact bottom line on whether a college overseas is cheaper. Just like in the states, there are private and public colleges. Also, the cost of living varies in different countries and cities.

When you do your math, you want to factor in the expenses that go into study abroad programs. Apart from tuition and fees, you need money for housing, food, travel and transport to and from college. Also, there is insurance to cover medical, dental and travel.

You also want to factor in the exchange rate for US dollars and if you are eligible for financial aid. That said, there are countries that offer free college or very affordable tuition. So, you may be able to satisfy your wanderlust while saving money.

7 Countries with Free College or Affordable Tuition

1. Germany

Tuition is free in most states, but you could pay tuition fees of about $1,793 USD and a semester contribution of up to $418 USD and living costs. The average German student has expenses of $979 USD.

2. Iceland

Tuition is free, but at public universities you pay an annual administration fee which differs at each college. The cost of living for food and housing of about $1,613 per month.

3. Norway

Tuition is free at public universities, but you might have to pay fees of $33 to $65 USD and the cost of living is high. It may be worth checking if financial support is available to offset your living expenses.

4. Austria

If you have a Residence Permit – Student, the average per semester cost is $868 USD. Your housing costs (rent, food, etc.) are additional expenses as well.

5. France

Public universities in France may cost from $178 to $1075 USD per term. You also need at least $514 per month to survive but that is low and varies by region. Paris is usually on the high side.

6. Luxembourg

The University of Luxembourg is the only public university in the country. Here, you need a living budget of $1,405 USD. You also pay a registration fee of $478 for semesters 1 and 2. Then $239 for semesters 3 to 6.

7. Spain

Depending on the cost per credit at Spanish universities, international students might have to pay up to $7,172 USD per year for undergraduate programs. The average student also spends at least $956 USD per year on books alone, and cost of living tends to be high in big cities like Madrid.

Have You Considered Peer-to-Peer Lending for Student Loans?

Posted on May 10, 2024December 17, 2024 by Melanie Datu

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With a competitive job market, many people are wondering whether it is the perfect time to attend college. These students are unsure about present and future job prospects along with rising student debt. Also, you may not presently have a job. So you are unsure if you may be eligible for student loans without a job? Learn more about how to receive a student loan without a job.

Where would you turn if you had exhausted your federal financial aid and still did not have enough funding through scholarships and grants to help cover your college expenses? Private students loans, right? For most students that would be the logical next step, but it’s certainly not your only option. Another option could be peer to peer lending for student loans.

Over the last few years, peer-to-peer lending (also known as social lending) has increased in popularity. Why? It’s simple.

Peer-to-peer loans typically offer lower interest rates and they often approve loans to those who may not qualify for traditional private student loans. There are basically two formats you can choose from: (1) family (friends and family) loans and (2) stranger-to-stranger loans. Both have their advantages and disadvantages.

Advantages of Peer-to-Peer Student Loans

As mentioned previously, both types of peer-to-peer lending formats may give you access to loans with lower interest rates. You may also qualify even if your credit score is less than perfect. The application for p2p loans is much easier to complete and you should receive approval (or denial) in a very short period of time.

There are also no prepayment penalties and you may have the option to enroll in an unemployment protection plan. Most peer-to-peer lenders also give you a discount if you choose to have your payments automatically withdrawn from your bank account. The biggest advantage, though, is the ability to obtain a loan without a cosigner in most cases.

Disadvantages of Peer-to-Peer Student Loans

Although peer-to-peer lending has many advantages, there are a few things to consider before you take out a loan. Unlike federal student loans, you generally won’t be eligible for forbearance, income-based repayments, or any loan forgiveness plans if you accept a peer-to-peer loan or similar social lending funding.

You may also have fewer years to pay back your debt. If you choose a family loan, you may also be ineligible to claim the student loan interest deduction on your federal taxes because it is unlikely to meet the definition of a “qualified education loan” per the Internal Revenue Service (IRS). Another key drawback is that you may or may not receive the entire amount requested and it can take some time for your request to be funded.

Where to Find Peer-to-Peer Lenders

In general, most peer-to-peer lending sites, such as Prosper and Lending Club, offer personal loans for weddings, home improvements, credit card debt consolidation, and more. There are only a few, however, that specifically offer student loans at this time.

Both SoFi and CommonBond offer student loans and refinancing, but it is important to note that they only provide student loans for graduate-level degrees at specific colleges and universities. GreenNote, which used to offer a more conventional type of student loan product, has switched to a crowdfunding platform where friends, family, and strangers may contribute to your college expenses.

We expect, however, that more players will enter the arena soon. As college tuition rates continue to rise, and more families find it difficult to cover the costs of an education, more creative ways to pay for college will be needed and welcomed to help students avoid the risk of default.

Private Student Loans

Posted on May 14, 2019December 17, 2024 by Shannon Fandler

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Private student loans serve as a means to fill the financial gap between federal financial aid and the actual cost of your college tuition. Prioritize exhausting financial aid from other sources, such as grants, scholarships, work-study, and federal loans. If there’s still a need for additional funds, considering private loans could be the next step in your college financing strategy.

Here’s what you need to know before getting started!

FEDERAL VS PRIVATE STUDENT LOANS

Federal student loans receive funding from the federal government, while private student loans are provided by lenders such as banks and credit unions. Additional distinctions between the two types of loans include:

Overall Cost of the Loan. Private education loans tend to have a higher overall cost.
Interest Rates. Private student loan interest rates may be higher than federal rates. Sometimes, private loans have variable interest rates that change over the life of the loan.
Loan Repayment Terms. Private loans often come with less favorable repayment terms compared to federal student loans, which may offer income-based repayment plans and other benefits.
Borrower Eligibility. For private student loans, your credit score may impact your eligibility, and you might need a cosigner. In contrast, most federal loans do not require a credit check or cosigner.

Make sure to explore all available government financial aid programs before considering private student loans. However, if federal loans fall short in covering your college expenses, a private loan could be a viable option.

FINDING LENDERS

Numerous banks, credit unions, and financial institutions provide private student loans. To find the best fit for you, it’s prudent to compare interest rates, terms, and conditions among a selection of top-rated lenders.

COMPARE THESE PRIVATE STUDENT LOAN LENDERS:

Sallie Mae
SunTrust
College Ave
PNC
Citizens

APPLY FOR A LOAN

When exploring private student loans, it’s essential to consider that not all loans are alike, and different lenders may offer products, features, and terms that align better with your objectives. As you delve into potential lenders, here are some crucial factors to bear in mind:

Your Eligibility. Assess whether you seek private student loans without cosigner requirements or if your credit history presents challenges. Some private loans may suit your needs more favorably based on your citizenship status, income, part-time or full-time student status, and other criteria.
Loan Cost. Scrutinize factors such as the loan’s interest rate, interest type (fixed or variable), and associated fees. These elements contribute to the overall cost of your loan. For instance, be cautious when opting for a low, variable interest rate if you intend to repay the loan over an extended period. Variable rates can fluctuate with the market, resulting in higher payments than anticipated.
Loan Features. Certain private loans offer advantageous features, such as cosigner release, deferment options in case of financial hardship, or early repayment opportunities. Additionally, many lenders provide auto-pay discounts, often reducing the interest rate by 0.25 or 0.50 percent. Compare multiple lenders to explore the various features available to you.

HOW TO APPLY FOR PRIVATE STUDENT LOANS

Prior to considering private student loans, it’s crucial to complete your FAFSA and make the most of any federal grants or loans you are eligible for. Additionally, don’t overlook the opportunity to apply for scholarships! If you find that you still require additional funds, then you can initiate the process of selecting a lender and applying for private student loans.

IF YOU’RE ELIGIBLE, HERE’S HOW TO GET A PRIVATE STUDENT LOAN:

Get Ready to Apply. Generally, you can apply for private student loans online. To start, you’ll need to prove your basic eligibility – like citizenship and college enrollment status.
Submit Documentation. You’ll need to provide your personal and financial information to your lender. Your lender may require documents like your Social Security number, a pay stub for proof of income or your monthly housing costs. They may also as for your school’s cost of attendance, the amount of financial aid you’ve already received, your cosigner’s details (if applicable), and other information.
You’ll Receive a Decision. Your lender will need to process your application and analyze your financial and eligibility information, to let you know whether you’re approved. If you’ve applied for your private loan online, you may receive a result pretty quickly – sometimes in minutes! In other cases, a lender may need more information from you to move forward.
Choose and Accept the Loan Terms. Once you’ve been approved for the loan, you’ll need to decide on your interest rate type (fixed or variable), loan term, and repayment plan. You and your cosigner (if you have one) will then sign the loan agreement.
Wait for Disbursement. Your private student loans will be sent directly to your college or university. If you have borrowed more than your tuition actually costs, your school will generally refund the difference to you. You can return that money to your lender. Or you could use it to cover other college costs, like room, board, or your textbooks. It’s always best to borrow the minimum amount you need to cover your education related expenses.

PRIVATE STUDENT LOANS ARE AN IMPORTANT RESPONSIBILITY

Opting for private loans to finance your college education can make your academic journey possible. College opens doors to new career opportunities and a promising future. Nevertheless, it is crucial to be aware of the risks and responsibilities as a borrower. You must ensure that you are prepared to take out and eventually repay your private loans.