Community College, think about it.
Dr. Glenn Mollette
Parents and high school seniors should seriously talk about community college or even a trade school. Community college is not an exciting exotic choice but can be the better choice in the long run.
The national average in-state tuition for community college is $4,847 per year. Costs vary a bit depending on classes and textbooks. Some states are lower, some are higher.
The national average in-state public university tuition is $11,610 which does not include room, board and supplies. The average cost including room and board is $25,055 per year. If you choose to go out of state the average cost jumps to $36,797 per year. The national average cost of in-state private colleges including room and board is $53,949! If you have to go to a private college, spending your first two years at a community college makes even more sense – cents!
Typically, the first two years of college are about meeting the institution’s general requirements. These are the classes you may not be that interested in but are required by the institution. Why pay big money to take classes you are not interested in taking? You can do this at the community college level for a lot less money.
After two years of community college, you can then go to almost any university you can afford. If you have a full scholarship ride to a four-year school then that’s different. Today, many schools offer a lot of partial scholarships to lure students. Many will dangle a scholarship of a few hundred to even several thousand. The idea is to entice you to their school because you still will have to pay them thousands of dollars each year. So, it’s still a big win for the university.
A college President at a private college said they offered many athletes half of the tuition cost to come to their school but they still had to pay the other half. Financially, the school still came out ahead with that kind of deal.
If you go to community college and it costs you $5,000 a year then you could put the other $5,000 in a Roth IRA. If you have $10,000 in a Roth IRA by the time you are 21 then that $10,000 will be worth about $728,00 at age 66. This is assuming a ten percent average interest rate over those 45 years. Even at eight percent over 45 years, your total cash at age 66 could be about $309,000. This is just for cramming $10,000 into a Roth IRA by age 21 and then not touching it for 45 years.
The average American doesn’t even start trying to save money until the age of 31. Starting late
means the same $10,000 at age 66 will be worth about $147,000 at an eight percent average rate.
Thus, if you can go to community college from 18-20 or 21, work some and invest your savings at a young age, then you won’t have to work or worry quite as much at age 66 or 67.
Think about it. You can go to the famed state university or even private school your junior and senior years and still have a degree from that school. Plus, you’ll be a little older, smarter, more mature and even have a chunk of your financial future already secured.
Think about it.
Dr. Glenn Mollette is the author of Uncommon Sense and thirteen other books
