Careers & Education Flashcards
Educational investment
Educational investment is all about how much time, money, and effort you and your family put into getting a higher education. People choose to invest in education for different reasons, like personal growth, getting a better job, moving up in the world, or helping their community. Everyone has different goals, so what’s important to one person might not be the same for someone else.
What are direct costs?
Direct costs are what you pay to the school for your education. These costs include tuition, fees, books, and supplies. For example, if you go to a four-year college, your tuition might be $10,000 a year. You might also have to pay fees for things like the student center fee or the school library fee. Books and supplies can add up, too.
These costs can be different depending on the type of postsecondary option you choose. For example, community colleges typically have lower tuition rates than four-year colleges, while technical schools and online programs may have different fee structures. , on the other hand, may not require tuition, but you might need to purchase tools or equipment for your trade.
What are indirect costs?
Indirect costs are the expenses you have while going to school, but you don’t pay these to the school. They include transportation, housing, food, and personal expenses. For example, you might need to buy a bus pass to get to class or pay for gas if you drive. You’ll also need a place to live and food to eat. These costs can vary depending on where you go to school and your personal choices.
For example, if you attend a local community college, your transportation costs might be lower than if you go to a four-year college far from home. Similarly, online programs may not require housing costs, while apprenticeships might require you to relocate for work.
What are grants and scholarships?
Grants and scholarships are types of financial aid that you don’t have to pay back, and they can be awarded based on merit, financial need, or other criteria. These awards can significantly reduce the overall cost of your education.
What are loans in the context of university and college?
Loans are money you have to pay back, but they can help you pay for school now. There are different kinds, like government loans and private loans, and they have different rules about paying them back. It’s important to know these rules because it affects your money later.
What is work-study?
Work-study is another form of financial aid that lets you work a part-time job while going to school to help pay for things. These jobs are usually on-campus or related to what you’re studying, and they help you learn job skills.
Ways to lower costs for university and college
- Grants and scholarships
- Loans
- Work-study
- Part-time jobs
- Cheaper housing options
- Buy used or rent textbooks
- Take advantage of student discounts and free resources
How do you find out the true cost of education?
- When you’re researching the cost of attending a college or training program, you might come across two different terms: COA and net cost.
What is COA?
Cost of Attendance is the total estimated cost of attending a program, including all direct and indirect costs, like tuition, fees, room and board, books, and other expenses. Sometimes, you may not actually have to pay the full COA!
Net cost
The net cost is the amount you’ll actually pay after subtracting financial aid, like grants and scholarships, from the COA.
To find the net cost, you’ll need to know the amount of financial aid you’re eligible for. This can include grants, scholarships, loans, and other forms of assistance.
Net cost = COA - financial aid
By understanding COA and net cost, you can make more informed decisions about which college or postsecondary program is right for you. Always remember to consider the net cost when comparing schools, and use online tools like net price calculators to help estimate your costs.
What should you use to compare schools
When comparing different colleges or programs, it’s important to consider the net cost instead of just the COA. A school with a higher COA might actually have a lower net cost for you because of your financial aid package.
You are considering getting a degree from two different colleges: college A and college B. You research college A’s cost of attendance and see that it is $30,000. The same degree program at college B has a cost of $35,000. Initially, college A seems more affordable.
ROI in the context of university and college
When you’re checking out the prices of different choices, don’t forget to think about what you’ll get out of it in the long run (aka your return on investment or ROI). That means looking at all the pluses that come with getting more education, like how much you’ll make, what kind of jobs you can get, and if it’ll make you happy.
If you spend a lot of money on a degree that doesn’t do much for you, that’s a bad ROI. But if you spend a lot on a degree that will seriously boost your pay, then the high cost is worth it.
List different educational choices
- Public universities
- Private universities
- Certification programs
- Community colleges
What should you consider in choosing which educational option is best for you?
- What are your career goals and interests?
- What type of learning environment do you prefer?
- What financial resources are available to you?
- What type of support services or extracurricular activities are important to you?
Why is quality of education investment important?
When thinking about college, it’s important to consider if it’s worth it for what you want to study. This means thinking about if what you get out of it is worth the money, time, and effort you put in. People want different things, like making new friends, getting a better job, or just gaining new knowledge. How good the college experience is can be different for everyone and depends on the school, what you study, and what you’re looking for.
