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Financial Planner Louis Scatigna on the rising costs of a college education and if it is worth the costs.
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The cost of college and skyrocketing and the employment market is especially -- recent graduates.
It's gotten to the point where you got to ask is education a good investment.
Joining me now the man with the answer Lewis to -- -- that note on the radio as the financial position.
He's also written about by the same name subtitled how to cure your money problems and boost your financial health welcome back to show great see you again to -- him.
You make what is probably a pretty contentious point about the fact that maybe you shouldn't be paying for college tell me your thoughts.
-- -- so expensive over the years about twenty years ago was more affordable be affordability index if you wanna.
I use that term is gone sky -- I mean actually it's dropped quite a bit it's more expensive to go to college now than ever because incomes have not gone up.
But inflation in college -- gone up tremendously.
How -- -- we can show you exactly what that looks like I think we have a full screen on that guys.
We look at that difference between incomes which are flat and the cost of tuition which have risen like topsy break there it is that yellow line is tuition the Blue Line is in come.
-- really puts parents.
In a vise grip.
How do you analyze whether or not your child should go to college which is that financial calculus that you do personal.
Only motivated are they gonna succeed in college of the gonna party for four years that's most important evaluation gonna make right there is gonna be worth the money.
How much is tuition gonna cost how much is board going to cost and other expenses like books.
Then you have to add to it the student loan interest that'll have to be paid over a decade.
That's a big cost.
And then you got to add to it what are they were working for four years and not going to college the income -- then.
So if you take that equation into account it's very -- expensive to go to college.
Then the benefit well are -- gonna get good paying job.
That justifies it and right now we're not seeing that in this economy.
Let's look at every student loan debt over time these are big big numbers.
2010201127000.
Dollars.
One year.
We're talking a lot about a lot of dead -- -- -- -- really frightening for people.
How how do you even talk to parents though about skipping college because it's part of the American dream people think your kids have to do it.
But they don't if they're motivated they could start a business -- go to vocational school technical school in this -- and H technicals big right now.
In liberal arts they teach -- stuff will never used in life we graduate -- so many people same type of degree and the big problem now when you graduate.
The people who've been laid off because this economy have experience.
And a degree to your fighting against them.
Right and -- let me tell you I know so many people in here here in New York City they go to school here.
They went up a 100000 dollars in debt they start their first job -- -- 35000 there's no way to pay that back.
It's like having a mortgage not -- -- house.
And if you don't have a you -- 30% of your review your income is going to student loans is prohibitively expensive.
-- but let's say let's say you really do want that education and you think your your child is really good about a -- that permit work hard they really wanna go to school how do you afford it what are the short.
Cuts the first thing to do is go to community college for the first two years that'll save about 40% of the overall cost of -- four -- education.
It's really graduate from that's the important thing as far as -- look at so.
Go to community college also look for grants and scholarships his many affiliation organizations that offer -- and apply for all the -- Stay in stay.
In state tuition is somewhat cheaper than the one out of state -- you know what the -- going to get away from mom and had a stroke or they can't.
So why make that move to -- state college and pay twice as much at silly.
Thing to do.
-- I wanna show your tips your true cost of college of the we have full screen on that.
Help people understand really how to calculate that -- how to think about this.
Remember -- true cost of -- the tuition plus 5% inflation.
Lifetime lifetime student loan interest and then the four years -- lost wages the costs are higher than you think.
Thank you so much -- for coming in great stuff great information Hampshire food for copper parents out there who.
