College is expensive; REALLY expensive, and the price tag is only increasing. Economists blame the high rate of tuition on everything from the accessibility of student loans to the drastic increase in administrative expenses. Regardless, the fact remains that college tuition is increasing at over twice the rate of inflation. It’s a real problem.
Yet, higher education is also REALLY important. Discouraging future generations from furthering their education out of fear of debt or an inability to cover tuition could hurt their chances of long-term success. This puts parents and grandparents of current or future college students in a tough spot. It’s your job to encourage them to get a good education, but is it your job to help them cover the hefty price tag? That’s why we’ve looked at the many and various ways grandparents can help their grandkids with tutition — with or without giving them actual money—in “Popular Ways to Help the Grandkids with College." In the piece, we dive more into the financial projections for tuition in the coming years, so before the sticker shock sets in, here are a couple of key points to remember.
On average, individuals who do not graduate from high school earn $23,562 a year.
A person with an associate degree or some form of two-year degree earns the national average of $41, 444 per year.
A four-year college graduate earns around $55,000 per year.
Individuals with post-graduate degrees generally earn $65,000 a year and beyond.
The numbers don’t lie: In the U.S., higher education plays a significant role in future success and stability. And that’s the main reason why supporting the current or future graduate in your family —in whatever way you can—is so important.