Estimating the Total Cost of College

(NewsUSA) - It's no secret that college tuition has gone up over the years, but how easy is it to calculate the total cost of college, and what income is required to stay financially healthy after graduation?

A new Sallie Mae study conducted by Gallup, "How America Pays for College," found that while 58 percent of families reported ruling out schools because of cost at some point during the application process, another 42 percent of families did not limit their search based on cost -; even after reviewing financial aid packages. In total, 70 percent of students and parents said a student's expected post-graduation income either was not considered or did not make a difference in their borrowing decisions.

For this reason, Sallie Mae, the nation's leading saving- and paying-for-college company, created Education Investment Planner, a free online tool to help students and families estimate the full cost of a college degree, compare schools, determine whether student loans are needed and project monthly payments.

"Sallie Mae offers this free online tool to help families make more informed choices about school selection by understanding upfront how to pay for it without going beyond their means," said C.E. Andrews, president of Sallie Mae. "We developed the Education Investment Planner as part of Sallie Mae's commitment to financial literacy and to helping students and parents understand the full cost of a college degree."

The Education Investment Planner (www.SallieMae.com/plan), enables families to:

- Find out how much four years for a bachelor's degree, two years for a master's degree or other programs will cost at a specific school, including the average growth of tuition over time.

- Build a customized plan to pay for college through a combination of personal money, federal and state grants, scholarships and, if necessary, federal and private student loans.

- Compare actual costs for approximately 5,500 colleges and universities, including tuition, average room and board expenses, fees, books and supplies.

- Determine whether students need loans and, if so, estimate what their monthly payments could be after graduation. It also provides projections for how much a graduate would need to earn to manage the payment comfortably.

"Article By: NewsUSA"