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Course: Financial Literacy > Unit 9
Lesson 3: Cost of post-secondary education and trainingPublic vs. private vs. certification vs. community college: What is the difference?
Knowing the difference between private and public universities, community colleges, and certification programs is important because they all offer unique learning experiences and opportunities. This helps you make a smart choice for your education, based on your needs, goals, and finances.
Comparing the costs of postsecondary education options
When you're trying to figure out how to best invest in yourself, there are a lot of options out there. You can go to a state school, a private school, a certification program, or a community college. And while the cost of each one can be wildly different (thousands of dollars different), that's not the only thing you have to think about.
You have to take into account all the other stuff that can help you figure out what's the best fit for you, like what you want to study, how long it will take, what kind of support you need, and what kind of opportunities you'll have after you complete your education. So let's take a look at all the factors that go into making this important decision, starting with the cost.
Costs
If you're deciding on which college to go to, you have to think of all the costs that add up to the grand total cost. That means taking a look at tuition, fees, textbooks, housing, food, getting around, and other expenses. Keep in mind that the cost can be different depending on the school, the program, where it's at, and if you qualify for financial aid or scholarships.
Remember to focus on the net cost, and not the cost of attendance (COA), to determine your true cost.
Return on investment
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.
A closer look at different educational choices
Now that you know what factors to consider when comparing costs, let's take a look at educational choices you have.
Public universities
Public universities offer a wide range of programs and activities. They typically have more students in each class and charge lower tuition fees than private universities. However, since many students choose public universities, there may be more competition for financial aid and scholarships.
Private universities
Private universities are funded mostly through tuition fees and private donations. They usually have smaller classes, which means more one-on-one time with professors, and offer more resources for student services. However, private universities generally charge higher tuition fees than public universities, but because they are more expensive, they usually have better financial aid options available.
Certification programs
Certification programs focus on teaching specific skills for a particular job or industry. They're usually shorter and cheapest option when compared to all other college programs. But keep in mind, they might not give you as many career options or earning potential as a full-on degree.
Community colleges
Community colleges offer two-year associate degree programs, as well as and technical training. They usually cost less than four-year colleges and universities, and can be a good option for students looking to save money or prepare for a specific career.
Tips for choosing the right option
To choose the best postsecondary option for you, look at your goals, interests, skills, and preferences. Here are some questions to help guide your decision:
- 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?
The best advice will most often come from graduates of the school or program that you are considering. They can tell you how beneficial (or not) the program was for them and what they got out of it.
Investing in yourself is most likely one of the biggest investments you can make, so it is important that you do not rush, or do it carelessly.
Want to join the conversation?
- The article reads "Remember to focus on the net cost, and not the cost of attendance (COA), to determine your true cost." I'm a little confused. How does the net cost help determine your true cost?(1 vote)
- The cost of attendance is the "full price" before your various grants, awards and scholarships are deducted. Let's assume that the COA is $50,000 per year, but you have grants and scholarships that total $22,000. Focus, then, on the $28,000 that you'll have to come up with through parents' contribution, part time work, and loans.(4 votes)
- I have a question, this might not be related to the topic but I just want to ask about this. Do US college universities offer a specific course for the students' specific degree? For example, I want to get engineering course, do they offer a course that is only of engineering or not?(1 vote)
- If you want a "pure" engineering degree, don't go to a university, but to something like the Rensealer Polytechnic Institute in New York or something similar elsewhere. At a university, even though you take a BS degree (rather than a BA), you'll be tasked with a pesky humanities requirement or two.(4 votes)
- Once you complete a certification program, what kind of opportunities would open up for you when you decide to take on a private or public university? Would it be added as a credit or is it just something that would look good on a resume?(1 vote)
- Certifications are more applicable to employment than to education.
If I am the human resources officer at a bank, and you come to me looking for a job and show me your certifications in financial and cyber-security training, I may be more willing to hire you. If I am the admissions officer at a university and you come applying for a place in the university, and show me the same certifications, I may consider you to be a more interesting individual, but I'm not likely to grant you advanced standing towards your degree.(1 vote)
- Isn't it that the more prestigious a college becomes, the lower the tuition fee with a lower acceptance rate? Because where I live, you only have to write an entrance exam and rank in the 1000th out of one million, and you pay less than, $5,000, for a four-year college fee(1 vote)
- You could easily work that out. Go to Stanford University's website and find the tuition rate. Stanford is Prestigious!
Then go to the college near you, which, unless you live in Palo Alto, CA, won't be Stanford, and find out the tuition there.
Compare the two numbers, and you'll have the answer to your question.(1 vote)
- Which college is better to go to?(1 vote)
- This depends on what you have, and what you want.
I attended a community college first. It was almost free. Then I went to a low-quality private college, shich was "good enough", but not great, and also cost more than the better quality state-university nearby.
I finished my graduate education at a state-run university, which was probably the best of all.(1 vote)
- How does the net cost help determine your true cost?(1 vote)
- The net cost is how much YOU, from your own resources, will pay for your college education. If you do it by living at home (and letting your parents house and feed you), you save on the cost of room and board. That lowers your "net cost". If you take some college level classes while you're still in high school, and get them without paying tuition, that also lowers your net cost. If you attend a community college for a few years before moving to a university, THAT lowers your net costs. If you get veterans' benefits because you served in the Army or Navy, THAT lowers your net costs.
Basically, whatever is NOT covered by scholarships and grants should be computed into your Net Costs.(1 vote)
- How do you come up with the net cost per year for a college you're attending?(1 vote)
- Add up these things:
1)The fees for application, matriculation, enrollment, key deposits and other nuisance things.
2) The tuition for a full year at full time
3) The cost of a dorm room and a meal plan.
4) Books and supplies
5) Transportation.
6) Recreational expenses.
After you've added all of those up, you'll have a BIG number.
Now, start to subtract:
Subtract any scholarships or grants that you received (whether from the government, the school, or a private foundation)
Subtract the amount that your parents or relatives have saved for you or will pay on your behalf.
That will leave you with a number which is the "net cost per year".
It will still, very likely, be a BIG number.(1 vote)