In addition to highlighting the skyrocketing cost of college, the pandemic has also highlighted the enormous burden of student loan debt.
Average college tuition and fees rose again in the 2021-2022 academic year, reaching $10,740 for in-state students in four-year public schools, according to the College Board, which tracks. Trends in College Pricing and Student Aid, Tuition and fees at four-year private institutions peaked at $38,070.
Next year, some colleges said they would increase tuitionciting inflation and other pressures.
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Most students borrow to cover at least some of the cost. As a result, more than 40 million Americans now collectively owe $1.7 trillion In student loans, a balance that has tripled since the Great Recession.
Still, many believe that getting a degree is worth it. Studies show that college graduates will earn about $1 million more during his career.
However, there are some who start college and never finish.
Although college completion rates are rising, only 63% of students enrolled in four-year institutions graduate within six years, According to National Center for Education Statistics.
For those who do not, it is especially difficult to manage education loans without the benefit of higher income potential.
The default rate among borrowers who leave with student loans but no degrees is more than three times the rate for borrowers who have a diploma.
“Maybe the traditional college experience isn’t the right path for everyone, but it leads to a wider conversation about other options available,” said Rick Castellano, a spokesman for education lender Sally May.
According to Sally May’s recent “How America Completes College 2022” report, the majority of students who put their education on hold said it was due to a loss of motivation or a change in life. Others cite financial concerns, followed by mental health challenges.
Often times, the non-completioners are first-generation college students from underserved communities.
Rick Castellano
Sally Mae’s spokesperson
“Many times, the non-completioners are first-generation college students who belong to underserved communities,” Castellano said. “What are the resources we can set up so that students feel more supported on campus?”
The report found that college finishers are more likely to grow up in households with higher income levels and have at least one parent with a college degree.
Completers are also more prepared when it comes to paying for college: 42% said they had a plan for how to pay for each year of college before they were even enrolled, compared to only 26. The % non-completioners said the same. (Other studies show that students are more likely to enroll in college when they are are aware of the financial resources available to help them pay for it,
“Having a plan to pay for college or having those conversations first goes a long way,” Castellano said.