OK, But What Does “Afford” Mean?

OK, But What Does “Afford” Mean?

I tend to catch a certain sort of article that comes across my radar with fair regularity, such as : “Four Steps to a Debt Free Degree” by financial blogger Jeanie Ahn, which is a rehash of the included video by Rachel Cruze.

According to Mrs. Cruze, specifically to get through college debt-free a student needs to:

  1. Choose a College You can Afford
  2. Seek out all Opportunities for Financial Aid
  3. Work Your Way Through School
  4. Ask Your Parents for Help

I take no issues with articles like these in that they provide a little bit of food for thought to those who haven’t explored even the most basic options to save and earn money for school. I would highly encourage any student to seek out these opportunities in addition to dozens and dozens more that would shave one’s out-of-pocket costs down to reasonable levels. I’m hoping this upstart blog and upcoming book can shed more specific light on some of these over the next few months.

I also wholeheartedly agree with the article’s #1 being #1. Your first step toward an affordable education should be to stay within your means. That much seems obvious. But it brings up a question: Just what does “can afford” mean?

Continue reading OK, But What Does “Afford” Mean?

Chart: College is a No-Brainer, Right?

Chart: College is a No-Brainer, Right?

NY FED

Above is the sort of chart that drives seventeen million students to college each year and why the rising costs of tuition haven’t put a damper on enrollment numbers. Recently the Federal Reserve of New York published it as part of their paper, “Do the Benefits of Education Outweigh Their Costs?“.

This sort of statistical outlay makes it only seem obvious that going to college pays off. In fact, as the Fed pointed out, on average college graduates will out-earn non-graduates by $1 million dollars over one’s lifetime.

But be careful. Note the word AVERAGE. Any time you see that word, beware the potential effects of the flaw of averages. Continue reading Chart: College is a No-Brainer, Right?