As originally posted on the Chronicle of Higher Education, the Education Department’s National Center for Education Statistics on Tuesday published new federal data on student financial aid, including the average price of attendance before aid and the net price of attendance for first-time undergraduate students. For those students attending

public four-year institutions in the 2010-11 academic year, average price before aid was roughly $17,600 and the net price was approximately $11,000. For students attending private, nonprofit four-year colleges, average price before aid was about $34,000 and net price was roughly $19,800. At for-profit four-year institutions, the average price before aid was roughly $27,900, while the net price was slightly more than $22,500, the report said.

What this means for students: College continues to be expensive. This report will provide average numbers to help guide student’s and their families through the school selection process.

What needs to be scrutinized even more is outcomes: Pertinent economic value is necessary if money is borrowed to fund education. This is because loans need to be paid back. No one wants to be saddled with much more debt than what their degree is worth. Judging schools by price tag is only half the equation. If the value of the knowledge gained must be considered. Take a look at average salaries based on degrees earned on PayScale.com for some estimates.

Individual results will vary: Remember, the numbers supplied by NCES and PayScale are averages based on past data. The economy has undergone massive structural changes over the years. While some traditionally lucrative occupations have seen downturns in employment and income, other occupations have been rising, like ship captains and make-up artists. Geographical location must be considered as well. North Dakota’s oil boom has drove unemployment to as low as 1% regionally, as there are not enough people to handle all the new work demands.

Some truckers make bank.......

Before committing to a particular school or degree, consider outcomes. If borrowing money for school is necessary, forecast your total required debt outlay before starting the education journey. Know what you owe long before committing to the years of study to acquire certain knowledge and skills, this way a rational outcome can be more easily achieved.

A recent post from Lynn O’Shaughnessy at The College Solution focused entirely on salary levels for particular occupations and surprise! Engineers of many varieties are on top.

Computer Engineering: number 8 on the list

It should be no mystery that engineers earn their pay, as they work in highly focused fields that require high level problem solving abilities. Engineers are able to apply powerful mathematical concepts and theories directly to their work. Yes, all those high level math courses, physics and chemistry classes in college are actually very applicable to a future career.

• 1. Petroleum engineering $155,000
• 2. Chemical engineering $109,000
• 3. Electrical engineering $103,000
• 4. Material science & engineering $103,000
• 5. Aerospace engineering $102,000
• 6. Physics $101,000
• 7. Applied mathematics $98,600
• 8. Computer engineering $101,000
• 9. Nuclear engineering $97,800
• 10. Biomedical engineering $97,800
• 11. Economics $94,700
• 12. Mechanical engineering $94,500
• 13. Statistics $93,800
• 14. Industrial engineering $93,100
• 15. Civil engineering $90,200
• 16. Mathematics $89,900
• 17. Environmental engineering $88,600
• 18. Management Info. Systems $88,200
• 19. Software engineering $87,800
• 20. Finance $87,300

However, high average salaries should not be the only determining factor in a career choice. Careers in engineering can be very demanding. Are you up to the challenge? Here are some pros and cons that most students think about when they consider this path.

Pros:

• You could always be in demand for work if you learn your craft well
• This career can offer continual steady income
• You build a base of scientific and logical knowledge that can help you outside of work, like hooking up your house with money saving technological devices for example

Cons:

• Challenging and rigorous study requirements
• Hectic and demanding work responsibilities depending on your field
• Changing technologies can suddenly lead to mass layoffs in your field

Long term success in engineering, like in many fields, appears to come from the individuals ability to branch out into other areas using the core knowledge they posses. Being incredibly focused on one type of product or technology can be highly lucrative for several years, but over time new technologies progress, making old technology and the experts that manufacture them antiquated.

People with engineering background may do well to expand their horizons into business areas like marketing, sales and product development as their careers progress. This way they can stay tuned

into market trends and know exactly what people are looking for. A competent engineer can bring real working knowledge to business development initiatives due to their technical insights, and can make all the difference when assisting clients.

Lifetime earnings will be connected to lifetime learning, so if you are considering this field based only on salaries you are missing the point. The salaries listed are mid career level, and come after some years of experience.

To learn more about career options on engineering check out some online resources:

http://www.discoverengineering.org/

http://www.engineeryourlife.org/

http://www.ncees.org/

http://careerplanning.about.com/od/occupations/p/engineer.htm

The reason why most students attend college is in order to secure a job after graduation. The job that college graduates are searching for is one that can afford them to take care of themselves and allow them to repay any student loans they took out. However many students that have graduated in the past few years find themselves working but unable to earn enough income to pay back their school debts easily. What is a student entering college now to do?

Before starting College, a student needs to account for what career path they envision after they graduate. If they plan to take out student loans to attend college they must be prepared for repayment.

The amount of debt used to complete a degree should relate to a minimum expected income after graduation.

It is critical for students to consider this because going heavily into debt to achieve an education without job prospects does not add up. Using student loans of $80,000, $90,000 or $100,000 towards an undergraduate degree is a major financial commitment that requires dedicated planning and preparation. Quite simply it is a huge amount of money, and will force a student to push back other big ticket purchases like a house or car if they cannot pay student loans back quickly. The following tips can help a prospective college student figure this out.

1. What kind of career do you want? Do you love to work with children and want to be a teacher? Are you interested in chemical engineering? Do you have a passion for film production? Is being a chef a dream occupation for you? These are all great career options that offer a varied amount of salaries. You first need to be aware of what kind of income potential there is for the field you want to enter. Take a look at the average salaries associated with these careers online with www.payscale.com or www.salary.com. Keep in mind that that these are average salaries, you could be making more or less. But at least you have an idea of what is out there.

2. What school can help you reach that career goal? Whatever your career goals are there is a college that can help you achieve them. There are a variety of schools that offer education, skills, development and support to get you going in the right direction. Figure out which schools can offer you the best education for your career goals.

3. Compare Costs: When comparing costs for college you will want to consider financial aid eligibility and how much loans you would have to take out. Do this by applying for admission to schools you are interested in and comparing the financial aid offered at each school. Then you will know how much student loans you need to pay the rest of the bill. Multiply that by 4 or 5 years to estimate your total debt when you finish school.

4. Compare total debt to income prospects: Use a loan repayment calculator (Check out FinAid for a student loan calculator) to figure out what your loan will cost you. The rule of thumb is that your student loan debt should not exceed your expected first year income. Financial planners recommend that monthly payments toward debt should be no more than 8% to 10% of income in a year. You will be able to make a better decision by considering both your career goals and debt needed for school.

Example A:
A career in special education has an average starting salary of about $31,000. If a school needs you to go $60,000 into debt to complete the degree, you would need to make payments of about $690 a month every month for the next ten years to pay it back, costing about $23,000 in interest alone. A $31,000 salary equates to about $1940 in net earnings each month after taxes. A $690 payment would account for about 36% of monthly earnings, an enormous figure leaving only $1,250 each month to manage ALL other living expenses. In this case the student should find a way to pay for this school through grants, scholarships or cash payments, or they should consider attending a different school that requires less loans.

Example B:
A career in Biotechnology has an Average starting salary of about $47,500. If you use about $20,000 in student loans to complete a degree for that, you would have a monthly payment of about $230 every month for the next 10 years. A yearly income of $47,500 would produce a net monthly paycheck of about $2900. Debt payments would be a manageable 8% of net income and would cost about $7,600 in interest to repay. This would be a reasonable school choice based on career goals and debt used.

Example C:
A career in petroleum engineering has an average starting salary of about $93,000. If it cost about $75,000 in student loans there would be a monthly payment of about $863 for the next 10 years. After tax monthly income of $93,000 is about $5,400. In this case the monthly debt payment would be about 15% of income. However there would still be about $4,500 each month available to handle living expenses. This appears to be a reasonable trade off, although careful financial planning would be beneficial. In this case the student should make extra payments to the loan to eliminate debt quickly.

Lesson Learned: Students must recognize that using debt for higher education comes with the responsibility of repayment. Student’s should avoid situations where they are taking excessive debt to go to school without any real career options apparent. If a student is having a hard time figuring out what to do for a career then they should avoid debt as much as possible. The student should attend a community college their first year to allow some time to figure out some goals. Community colleges are substantially less expensive than name brand Universities and will not require lots of student loans to attend. When the student does figure out what they want they can transfer to a school that can offer a better opportunity. This way the student does not waste money at an expensive school trying to “find themself”. By following these steps a student can be well prepared to handle loan repayment when they start a career.

The reason why most students attend college is in order to secure a job after graduation. The job that college graduates are searching for is one that can afford them to take care of themselves and allow them to repay any student loans they took out. However many students that have graduated in the past few years find themselves working but unable to earn enough income to pay back their school debts easily. What is a student entering college now to do?

Before starting College, a student needs to account for what career path they envision after they graduate. If they plan to take out student loans to attend college they must be prepared for repayment.

The amount of debt used to complete a degree should relate to a minimum expected income after graduation.

It is critical for students to consider this because going heavily into debt to achieve an education without job prospects does not add up. Using student loans of $80,000, $90,000 or $100,000 towards an undergraduate degree is a major financial commitment that requires dedicated planning and preparation. Quite simply it is a huge amount of money, and will force a student to push back other big ticket purchases like a house or car if they cannot pay student loans back quickly. The following tips can help a prospective college student figure this out.

1. What kind of career do you want? Do you love to work with children and want to be a teacher? Are you interested in chemical engineering? Do you have a passion for film production? Is being a chef a dream occupation for you? These are all great career options that offer a varied amount of salaries. You first need to be aware of what kind of income potential there is for the field you want to enter. Take a look at the average salaries associated with these careers online with www.payscale.com or www.salary.com. Keep in mind that that these are average salaries, you could be making more or less. But at least you have an idea of what is out there.

2. What school can help you reach that career goal? Whatever your career goals are there is a college that can help you achieve them. There are a variety of schools that offer education, skills, development and support to get you going in the right direction. Figure out which schools can offer you the best education for your career goals.

3. Compare Costs: When comparing costs for college you will want to consider financial aid eligibility and how much loans you would have to take out. Do this by applying for admission to schools you are interested in and comparing the financial aid offered at each school. Then you will know how much student loans you need to pay the rest of the bill. Multiply that by 4 or 5 years to estimate your total debt when you finish school.

4. Compare total debt to income prospects: Use a loan repayment calculator (Check out FinAid for a student loan calculator) to figure out what your loan will cost you. The rule of thumb is that your student loan debt should not exceed your expected first year income. Financial planners recommend that monthly payments toward debt should be no more than 8% to 10% of income in a year. You will be able to make a better decision by considering both your career goals and debt needed for school.

Don't let debt crush you

• Example A:
  A career in special education has an average starting salary of about $31,000. If a school needs you to go $60,000 into debt to complete the degree, you would need to make payments of about $690 a month every month for the next ten years to pay it back, costing about $23,000 in interest alone. A $31,000 salary equates to about $1940 in net earnings each month after taxes. A $690 payment would account for about 36% of monthly earnings, an enormous figure leaving only $1,250 each month to manage ALL other living expenses. In this case the student should find a way to pay for this school through grants, scholarships or cash payments, or they should consider attending a different school that requires less loans.
• Example B:
  A career in Biotechnology has an Average starting salary of about $47,500. If you use about $20,000 in student loans to complete a degree for that, you would have a monthly payment of about $230 every month for the next 10 years. A yearly income of $47,500 would produce a net monthly paycheck of about $2900. Debt payments would be a manageable 8% of net income and would cost about $7,600 in interest to repay. This would be a reasonable school choice based on career goals and debt used.
• Example C:
  A career in petroleum engineering has an average starting salary of about $93,000. If it cost about $75,000 in student loans there would be a monthly payment of about $863 for the next 10 years. After tax monthly income of $93,000 is about $5,400. In this case the monthly debt payment would be about 15% of income. However there would still be about $4,500 each month available to handle living expenses. This appears to be a reasonable trade off, although careful financial planning would be beneficial. In this case the student should make extra payments to the loan to eliminate debt quickly.

Lesson Learned: Students must recognize that using debt for higher education comes with the responsibility of repayment. Student’s should avoid situations where they are taking excessive debt to go to school without any real career options apparent. If a student is having a hard time figuring out what to do for a career then they should avoid debt as much as possible. The student should attend a community college their first year to allow some time to figure out some goals. Community colleges are substantially less expensive than name brand Universities and will not require lots of student loans to attend. When the student does figure out what they want they can transfer to a school that can offer a better opportunity. This way the student does not waste money at an expensive school trying to “find themselves”. By following these steps a student can be well prepared to handle loan repayment when they start a career.

Recently The College Board and researchers at Gallup put together a comprehensive report about the benefits of a college education. Since it’s release it has garnered a great deal of attention from those within and outside the academic community. Per the authors of this report “Students who attend institutions of higher education obtain a wide range of personal, financial, and other lifelong benefits.” Here are some highlights from the report.

“Median earnings of bachelor’s degree recipients working fulltime year-round in 2008 were $55,700, $21,900 more than median earnings of high school graduates.”

“Individuals with some college but no degree earned 17% more than high school graduates working full-time year-round. Their median after-tax earnings were 16% higher.”

“Both the percentage of people who donate their time to organizations and the number of hours people spend in volunteer activities are higher among individuals with higher levels of education.”

“During the decade from 1998 to 2008, the smoking rate declined from 14% to 9% among adults with at least a bachelor’s degree, while the rate for high school graduates declined from 29% to 27%.”

“Among young adults between the ages of 25 and 34, 63% of four-year college graduates reported exercising vigorously at least once a week before being surveyed in 2008, and another 18% reported light or moderate exercise. Among high school graduates in this age range, 37% reported vigorous exercise and 17% reported light or moderate exercise.”

Throughout the report statistics continue to demonstrate similar findings. Everything from average salaries, employment, retirement savings, health care and exercise are covered. Even college educated mothers have their breastfeeding habits statistically organized. And they all demonstrate the same theme. A college education creates a wide range of social benefits to the advantage of everyone.

This is comforting news to many families concerned about the cost of higher education today. The cost of college is very high, and continues to rise. However with so many benefits associated with attending college it is easy to justify total cost. This would be why in this tough economy there is record enrollment in colleges around the country. Families continue to value a college education as a priority and are willing to pay for it.

However there is some criticism of this report. Researcher John Leef from The John William Pope Center for Higher Education Policy wrote in his review of the report that:

“It’s also true that good behaviors like voting and participation in volunteer activities, and the absence of harmful ones like smoking and obesity, correlate with higher education but that does not mean that going to college has much (if any) causal effect on them” and further challenges the report because it “irresponsibly promote(s) the idea that college is good for everyone”

The cost versus benefits of college continues to be an ongoing issue in America and will continue as tuition keeps on rising. College continues to be held in great value by American families. However as costs continue to rise students will have to make their own personal decision about what a degree is really worth.