While Americans struggle with rising costs for food, gas and energy, another household budget item is soaring again: the cost of college. A new report says several top universities in Texas are raising tuition rates again next fall, including Rice, Baylor and TCU. Texas public universities are under a two-year tuition freeze agreed to with the Legislature, but that freeze only applies to in-state undergraduate students. Thus, the University of Houston is allowing tuition increases for out-of-state students and all graduate students.
The numbers are staggering. Including all costs (tuition, housing, food, fees) the total cost for a first-year student at Rice starting next year will exceed $81,000. At TCU, the total cost for an undergrad will be over $79,000. In fact, TCU's tuition is now more expensive than some Ivy League schools.
The bad news for students and parents is there appears to be no end in sight to these price hikes. "The thing about colleges is they're not accountable to anyone," says Jean Burk with College Prep Genius. "So they're just gonna keep going, because people keep paying it."
Burk tells KTRH what all of this really means is more debt piled on top of students and their families. "The key is for people to understand that spending 20 years paying off college debt is a lousy investment," she says. "There is no college that's worth it, and there are so many ways to go for free."
The schools claim very few students actually pay the sticker price because of all the financial aid available. But Burk warns that most of that financial aid is only available to families deemed "low-income." "If you are considered middle to high-income, you want to chase merit-based aid, as opposed to need-based aid," she says. "Find schools that will give you merit aid based on your child's SAT scores, or music, or sports...that's where the money comes from."
If you must borrow money for school, she recommends being judicious and only borrowing what you absolutely need. "One rule of thumb for parents who do plan on taking out some kind of loan, is make sure the total debt is no more than the annual starting salary of their degree," says Burk.
"And don't fall in love with choosing an expensive 'name' school," she continues. "The bottom line is this...the dream school is the one that you don't have to pay for."
Photo: Moment RF