College Costs & Financials Advice from a Class of 2024 CW Grad

Introduction

Colleges are generally quite expensive. One second you're in highschool and your parents are dealing with all of the finances, and the second, all of the sudden, you're expected to pay tens of thousands of dollars! Whether it's by cutting costs or by getting money to go towards those costs, this page should be able to help you deal with the financial chaos of affording college.

The Reality of Student Debt

You've likely heard a lot about student debt by now; it's a topic that comes up frequently in conversations about college. Simply put, student debt is money that current or former students owe after borrowing funds to pay for their education. In this segment, we'll explore the common consequences of student debt and also encourage you to consider whether attending college is truly the only way for you to achieve your goals and find success.

The Crisis

The amount of student debt in the United States is truly staggering. As of 2025, Americans collectively owe an astounding $1.77 trillion in student debt. To put that into perspective, this total, when adjusted for inflation, is more than double what Americans owed in 2006. Without adjusting for inflation, it's over triple that amount. This dramatic increase is partly because the average college tuition has tripled since 1980, even when adjusted for inflation.

For individual borrowers, the financial reality is stark. The average student debt is approximately $38,883, and the average interest rate for federal undergraduate loans stands at about 6.53%. Each year, an average of 8.15% of student loans enter default, meaning the borrower is unable to repay what they owe.

In essence, the situation presents a substantial challenge. Americans carry a considerable amount of student debt, and the future remains uncertain for many. While we did observe a slight decrease in total student debt in 2023 for the first time ever, and average college tuition prices have also seen some recent reductions, we are still far from resolving this widespread issue. The financial burden on students remains heavy. If you were to attend college today and live on campus, you would likely face an average cost of $27,146 per year. Unless you have substantial personal wealth or secure a significant amount of financial aid and scholarships, you would likely need to borrow an average of $31,960. Furthermore, there is a 50% chance you could still owe at least $20,000 even 20 years after you begin attending college.

Loan Forgiveness' Unreliability

You may have heard of loan forgiveness, often presented as a miraculous solution to student debt. However, it's important to understand that loan forgiveness has historically been very unreliable as a guaranteed pathway to debt relief.

One prominent example is the Public Service Loan Forgiveness (PSLF) program, which promised debt relief to those working full-time for qualifying government or non-profit organizations. While this sounded like a miracle for eligible individuals, its early years (roughly 2017-2020, when the first borrowers became eligible) saw approval rates of less than 3% for applicants. This was largely due to strict technicalities, such as being on the wrong repayment plan or other confusing requirements. Additionally, PSLF requires borrowers to make 120 qualifying monthly payments, which means 10 years of consistent payments, before approved loans are forgiven. Under recent government efforts, such as temporary waivers, many past issues for PSLF applicants have been addressed, leading to more borrowers receiving forgiveness. However, for new applicants, the program remains exclusive to those working for qualifying government or non-profit organizations, with its core requirements still in place.

Beyond PSLF, other loan forgiveness programs exist but are typically limited to very specific situations. These can include former students who are totally and permanently disabled, those who were defrauded by their college, or individuals subject to other specific extenuating circumstances. It is also important to know about Income-Driven Repayment (IDR) plans, which offer forgiveness on any remaining loan balance after 20 or 25 years of payments, depending on the plan and loan type. This is a form of forgiveness available to a broader range of borrowers, though it requires a very long repayment period. They also help you afford your monthly payments by adjusting them to your current income and family size.

Attempts to provide more widespread loan forgiveness, such as broad cancellation efforts, have been consistently challenged or blocked by higher government authorities and face significant political and legal hurdles. Existing programs are often subject to change, modification, or even potential discontinuation based on shifting administrations, lengthy legal challenges, and political priorities. The specific loan forgiveness plan you might hope to use could be significantly altered or might not even exist by the time you graduate, let alone after fulfilling the years of consistent payments needed to be eligible.

In the end, loan forgiveness is generally not something you should depend on as a certainty during or after your college career. Instead, it is best viewed as a potential benefit to take advantage of if it happens to be available and beneficial.

College Alternatives

After reading about the realities of student debt, you might be asking a very important question: Do you truly need to attend a traditional, four-year college? In today's world, it often feels like there's no other path to success, but that just isn't the case. While a traditional four-year college experience can certainly be a valuable option, it is not the only way to build a successful life and career, especially given current college costs. This section will explore various alternative routes that can also lead to fulfilling opportunities. 

Trade Schools

One excellent alternative to a traditional four-year college is attending a trade school. Instead of granting a broad academic degree, trade schools focus on training you for a specific job, such as an electrician, barber, or pastry artist, and provide a vocational certificate for that profession.

A significant advantage of trade schools is their cost. They often cost much less to attend, with an average total cost typically ranging from $5,000 to $20,000. This is a stark contrast to the potentially $150,000 or more you might pay for a traditional four-year college degree. Furthermore, typical trade programs can be completed much faster, usually within a few months to two years, compared to a four-year bachelor's degree. Every course you take at a trade school is specifically tailored for your chosen job, meaning you won't spend time in classes that feel unrelated to your career goals. You'll also benefit from a highly hands-on learning environment. The demand for these skilled trades is generally strong, with many areas projecting an increase in job opportunities in the coming years. 

However, there are also a few important factors to consider. On average, individuals with a bachelor's degree tend to earn more over their careers than those with only a vocational certificate. It's true that many vocational careers offer good pay, and some even pay more than certain jobs requiring a bachelor's degree. Additionally, the higher earnings of a traditional college graduate can sometimes be offset by the significant student loan debt they accrue. Another point to remember is that trade schools prepare you for a specific profession. If you decide to change careers later to a different trade, you will likely need to undergo new specialized training. Finally, graduating from a trade school may not mean you are immediately ready to begin working independently. Many trades require you to obtain state licensing or specific certifications, and you may also need to complete ongoing training or apprenticeships before becoming fully qualified.

In summary, trade schools offer a quicker and more affordable path to a specific career, but they may limit your career flexibility in the long run. Additionally, you will often need to obtain further licenses, certifications, or apprenticeships after graduation.

Community Colleges

Another valuable alternative to a traditional four-year college is attending a two-year community college. Community colleges typically cost significantly less than traditional four-year institutions. Their average cost is often less than half of a public four-year college and less than an eighth of what you might pay at a private four-year university. On top of these substantial savings, many states offer "Promise Programs" or similar initiatives that can even make community college tuition-free. Standard financial aid programs, such as FAFSA, also apply to community colleges, further reducing costs.

Community colleges offer a variety of academic paths: 

• Associate of Applied Science (AAS): This two-year degree, usually requiring around 60 credits, is designed to prepare you for a specific field of work, such as nursing or automotive repair. It includes some general education courses like English and mathematics, though fewer than a bachelor's degree. While primarily career-focused, some community colleges and four-year universities have "2+2" or "articulation" agreements. These agreements may allow credits from an AAS to count towards a bachelor's degree in a related field if you decide to continue your education later. This path can even enable you to work in a higher-paying position after community college, earning income while you pursue a bachelor's degree part-time.

•  Certificate Programs: Similar to programs offered by trade schools, these typically take anywhere from a few months to a year to complete. While also career-focused, certificate programs at community colleges might include or encourage a very limited amount of general education classes and often offer a more balanced approach of theory and practice, meaning you might spend more time in classrooms compared to some trade school accreditations. Credits earned through a certificate program might also count towards an AAS degree at the same college if you wish to further your education.

•  Associate of Arts (AA) or Associate of Science (AS): These degrees are specifically designed for students who plan to transfer to a traditional four-year college. We will discuss these further under "How to Afford College" as a more affordable way to begin a four-year degree.

Beyond these specific programs, community colleges offer many other significant advantages. They often provide massive flexibility in class scheduling, with options for day, evening, weekend, and online classes to fit busy schedules. Because community colleges are local, you can typically live at home while attending, saving money on living costs and staying connected to your community. Smaller class sizes often mean you receive more personalized instruction, help, and feedback on assignments. Additionally, most community colleges offer open enrollment, meaning that if you meet basic requirements such as having a high school diploma or equivalent, you can attend. Compare this to the generally much more selective four-year colleges. They are also a great place to explore different subjects at a low cost if you're unsure of your major, or to strengthen your GPA and brush up on subjects before applying to a more selective four-year college.

A Lifetime Military Career

Perhaps other paths like traditional college or trade school don't quite fit your goals. Maybe you have no money to spend and don't qualify for enough financial aid. Or perhaps you want to immediately start working with no delay. For these reasons and more, a career in the military can be a compelling option.

It's important to understand that military service, while incredibly valuable, isn't always a direct substitute for a civilian higher education degree. While military experience is highly valued on a resume, the training and experience you gain don't automatically count as a college degree or vocational certificate in every situation. While some companies highly value long-term military experience, viewing it as equal to or even preferred over a degree for certain positions, this isn't always the norm across all industries. However, a major financial benefit is that you don't pay for your training in the military; in fact, you get paid while you learn! From the moment you begin training to the day you retire, you'll be earning a full-time salary. Instead of accumulating student debt, you'll have a steady income right from the start. 

In addition to a regular salary, which you receive twice a month, you'll also earn tax-free allowances for housing (Basic Allowance for Housing, or BAH) and food (Basic Allowance for Subsistence, or BAS). These tax-free benefits significantly increase your overall actual pay. Your paychecks will also steadily grow over time with promotions and your years of service. Beyond these primary income sources, there's potential for enlistment and re-enlistment bonuses, especially for jobs in high demand or for extended service, offering additional income upfront. The military also provides extra pay for specialized skills, such as foreign language proficiency and for hazardous work.

Many service members describe a military career as deeply fulfilling. Beyond the satisfaction of doing important work and making a difference, the military offers exceptional opportunities for personal growth. Military careers involve varied assignments, where service members might move to new related jobs, units, or even geographic locations every few years. For instance, a plane mechanic might transition from working on training jets to advanced fighter jets, allowing for a well-rounded set of skills within their profession. Sometimes, you might even be assigned a "broadening assignment" or "special duty," moving outside your work specialty into a different role entirely, such as a recruiter, instructor, or drill sergeant, which helps build strong leadership and interpersonal skills. These diverse experiences and skills are also highly valued on a resume if you choose to pursue a civilian career later.

Another unique aspect of a military career is the clear path to advancement. In most civilian jobs, getting a promotion can involve a lot of guesswork. In the military, however, advancement requirements are generally very clear, based on factors like time in service, performance evaluations, and specific qualifications. This transparency largely eliminates the uncertainty present in civilian careers. While medals and awards recognize specific achievements, they also enhance your overall service record, which can contribute to your competitiveness for promotions.

Finally, the military provides virtually unmatched benefits, especially for a lifetime career. Upon completion of 20 or more years of military service (for those under the Blended Retirement System, which applies to service members who joined on or after January 1, 2018), you will receive an immediate lifetime pension. This is a passive income you begin receiving right after retiring, unlike most civilian pensions that require you to wait until age 65. This pension is calculated as a percentage of your average highest 36 months' pay, adjusted for inflation annually. For example, after 20 years, your pension would be 40% of your highest average pay.

On top of this, you are automatically enrolled in a Thrift Savings Plan (TSP) after 60 days of service. At this point, the government automatically contributes 1% of your basic pay to your TSP. Then, for every dollar you contribute up to 3% of your pay, the government matches it dollar-for-dollar. For the next 2% you contribute, the government contributes half of what you put in. This means that if you contribute 5% of your basic pay, the government will add another 5% to your TSP. This is a very valuable savings plan, and your government contributions are fully vested, meaning you have full ownership of them, after just two years of service.

That's not all. Military retirees and their families also gain access to TRICARE For Life, a low-cost and excellent healthcare insurance plan for the rest of their lives. Once eligible for Medicare, TRICARE For Life acts as a secondary insurance, covering almost everything Medicare doesn't. To provide context, the average healthy 65-year-old retiree couple might need over $315,000 to cover healthcare costs during retirement, a cost TRICARE For Life practically eliminates. Beyond these main benefits, there are many other excellent perks. Veterans receive access to the VA Home Loan Guarantee, for instance, allowing them to buy a home with no down payment and no private mortgage insurance. They also gain lifetime access to on-base grocery stores (Commissary) and department stores (Exchange), which provide goods at significantly lower costs than most civilian stores. You can even sometimes hitch a free ride on military transport aircraft with available empty seats, known as Space-A travel. 

No Higher Education

Forgoing all other education is a risky move, but it's still a path you can take, regardless. The main financial benefits of this route, of course, are starting your adult life without any student debt whatsoever, as well as being able to start earning an income immediately. While these benefits are definitely immense, it comes with a massive long-term trade-off. The typical worker with a bachelor's degree earns $1,543 a week, or $80,236 a year. The typical worker with only a high school diploma earns $930 a week, or $48,360. That's a difference of just over 40%! When measured across a lifetime, the difference becomes even more noticeable. The typical worker with a bachelor's degree can earn over $1 million more than the typical worker with only a high school diploma. On top of this, unemployment rates are significantly higher among those with only a high school diploma, at around 4.2% compared to those with a bachelor's degree, which is around 2.5%. You can see now why this route is often discouraged.

With only a high school diploma, your options for employment are often very limited. Many jobs have a stated or even unstated requirement for you to have some sort of degree, known as a "paper ceiling." If you don't have some sort of degree or certification, your job application may never even reach a human. The most common starting points for those without a higher education are entry-level and service jobs, including roles such as retail, hospitality (for instance, working as a waiter at a restaurant or a concierge at a hotel), customer service, general labor, and warehouse/logistics positions. You could advance in the ranks through these jobs from a simple worker to even upper management through dedication, hard work, company-provided training, and skills you learn on the job. Another route is working in a skilled career through raw experience and on-the-job training. For instance, you might take up an entry-level job in construction and, over time, be able to take up a role in a much more specialized position. In this way, you can work your way to positions that seem to require a degree without any of the costs that it would take to obtain one. A third, and much more risky option, is to start your own business, such as landscaping, cleaning, car detailing, and more. However, about 21.5% of businesses fail within their first year, and about 48.4% of businesses fail within their first five years, making this an extremely risky strategy that could leave you in more debt than you would've been with student loans! However, Apple was started in a nondescript garage, so there is obviously a very high reward element to this option. Additionally, there will be no ladders to climb within the business, since you start as the CEO! Because of the high risk, though, be sure to do quite a bit of research about the current market and economy if you go down this route, as well as taking the opportunity to learn as much as you can about economics. Due to the high failure rate, always make sure you have enough in savings to fall back on in case something happens!

What's extremely important to remember when choosing this route is that your education doesn't end at high school. Instead, you are now fully in control of it. It's extremely important to become a lifelong learner, and especially when skipping higher education entirely. Take free courses online, read books, watch tutorials, and listen to podcasts. You are in charge of your life now, and you need to make sure that you know what you need to know, not to mention that science is always advancing and that you need to be advancing with it! You'll also need to find mentors, people who are experienced and successful in your work sector and ask for their advice. Find out what got them to where they are! On top of this, you need to make sure that you're learning skills that are on-demand in your industry. No one in auto manufacturing is going to care whether or not you speak ancient Egyptian. However, some skills are going to be valuable anywhere. Communication is one of these; you'll need to be a clear communicator no matter what job you take up. This includes communication between you and customers, your boss, your coworkers, those who work for you, and more. Another skill that's useful anywhere is leadership skills. Being able to take initiative and help anywhere is infinitely valuable, and often is a major requirement for promotions. Finally, sales and negotiation is a skill that is practically infinitely valuable. Think of it this way: You need good sales and negotiation skills even to get a job! If you enter an interview and vouch for why you'd be a great employee, you're using these skills. If you end up managing a major business, your negotiation skills could save or cost you hundreds.

Arguably the most important element of your success without and higher education is networking. Without some sort of certificate, you have nothing to prove your worth besides other people's opinions. When you create excellent work, communicate professionally, and consistently show up, your coworkers become your certificate. You don't even have to start working to start networking in this way. Your networking can begin during your school career! Teachers' endorsements are extremely valuable when applying for your first few jobs. Having people that advocate for you is essential for your success. Your reputation among these people is what employers will see as a representation of your value instead of a piece of paper. Of course, having that piece of paper can be nice too, of course. What's additionally essential about networking is a little known fact - 80% of jobs never hit the public market! Those jobs are instead filled in completely by referrals, by people who know people who might be good for the job. A personal recommendation can be significantly more valuable than a resume. Finally, remember what we discussed about becoming a lifetime learner? Networking is essential in that aspect, as well. As we mentioned before, finding others to mentor you is essential to your success. Having people you can ask about difficult issues at work is invaluable and increases your value to your employer greatly. Being able to watch coworkers and ask them questions about their work without fear allows you to accelerate your learning rapidly. Additionally, you should ask those in positions higher than your own what they did to get there. What you need to do to get promoted can often be incredibly vague and differ from job to job, so asking someone in a similar position as you what they did right will eliminate much of this confusion and give you a direct path to follow.

Another incredibly essential part of this path is having an unbeatable work ethic. This is where you can gain the upper hand on all those fancy college graduates. A bachelor's degree means nothing if they barely get anything done. Work hard, and you'll get noticed. Create a history of working hard, and that'll definitely get noticed! Make sure to have a great team spirit and maintain a positive work environment. However, make sure not to be toxicly positive - being so positive as not to acknowledge anything bad happening. Make sure to follow company policies even if they seem stupid. Rules almost always have a reason for existing, you just need to think hard enough. If it turns out the rule or rules are stupid, it's not your place to decide, so might as well follow them anyway. The best you can do is bring it up as an innocent question for your upper management. In essence, it's all a balancing act. Make sure to work hard, be positive, and follow workplace procedures and you'll do just fine!

The Benefits of Going To a 4-Year College

After reading about all the college alternatives, you may think that going to a 4-year college pales in comparison. However, not so!

Increased Income

Graduates of a 4-year college typically earn much more.

A Greater Understanding of the World

General education classes like those in the sciences, mathematics, and history contribute to your understanding of the world in ways that are in no way easy to describe. In essence, things just start to make more sense. With your greater understanding of the world, you'll be able to predict what will happen much more successfully and regularly, understand how and why things happen the way they doin greater capacities, and be able to make decisions that are simply better.

The College Experience

The college experience is something that many students want, and it's easy to see why. The sad things is that you generally can't get this experience from any other source.

How to Afford College

College is expensive. Like, really expensive. We've talked about that enough already. Now let's talk about how to afford it!

Community Colleges

As discussed under "College Alternatives," community colleges can be a great way for you to afford your education. However, we're going to talk about transferring from a community college once your get your AA or AS to a 4-year college to finish your 4-year degree.

However, a little known fact is that you'll typically earn less than those who didn't transfer!

A Short Military Career

After completing a short military career (36 months), the military will pay for all of your tuition for a standard public college. They'll also give you an allowance to use on housing and $1,000+ to afford books. You can even take college courses while in the military and "test out" of college courses, too!

Public Vs Private Colleges

Public colleges are typically much less expensive than private colleges.

Concurrent Enrollment

You can take college courses during High School, fully paid!

Scholarships

Literally free money. Apply to as many as you can, many just require you to fill out a short form. Some just require you to click a button! Most require you to submit essays, however, so make sure they're on-point!

State and Federal Grants

Free money awarded primarily based on financial need. This includes the FAFSA, which you should always fill out! This is your most important form of financial aid.

Federal Student Loans

Student loans are loans that are very useful. You borrow money with a promise to pay it back, plus interest. The interest rates are always fixed, meaning they cannot change. Most also require no credit to receive funds. You also don't need to start paying it back until you finish college, and even then there are plenty of flexible repayment plans, such as IDR plans which adjust repayment based on how much money you make.

Private Student Loans

Private student loans are similar to federal student loans, except that they offer much less repayment flexibility, do not qualify for student debt forgiveness, are influenced by your credit, and etc. These loans often offer extra options custom made for students. Still a better option than most other loans, but are also annoying to pay off.

General Loans

These loans have very little advantages over student loans. The only pros are that you can use them on anything and that they're generally dischargeable if you file for bankruptcy.

Working During College

Should you?

Currently, there's an anxiety epidemic, college students are overworked, and there's even a stereotype of college students never sleeping! However, it might be smart to do so to pay off your debt before interest accrues.

How to Not Have To

Financial aid and smart loans decisions! Basically, get more money, spend less money.

How to Make the Most of it

This section will teach you how to maximize the benefits from working during college, as well as how to balance your job and college at the same time.