This article explores the impact of wages and inflation on college affordability for working students. It discusses the decrease in net cost of attendance, influence of minimum wage, and strategies for balancing work and full-time course load.
Questions Answered in this Article
- How many hours a week would a student earning the state minimum wage need to work to cover the average costs of a public four-year college in their state?
- They would need to work for 35 hours a week.
- Have public four-year college attendance costs decreased or increased in recent years?
- Public four-year college attendance costs have decreased in recent years.
- How many hours would a student have to work per year to pay for the net cost of attendance at the most reasonably priced four-year colleges if they were to pay solely from their earnings?
- The hours they would have to work per year vary depending on the state, but it ranges from 38 to 51 hours per week.
- What should students do if they need to borrow money for college?
- Students should look to federal student loans first as they usually come with lower interest rates and more payment alternatives than private student loans.
- What are some recommendations for working students to manage their schedules effectively?
- Recommendations include establishing a manageable schedule, completing the FAFSA, applying for scholarships annually, borrowing federal loans first, and seeking assistance from advisors or student counseling.
The Impact of Wages and Inflation on College Affordability for Working Students
In recent years, public four-year college attendance costs have decreased, and minimum wages have increased in several states. Despite these changes, it remains daunting for students to work through college while maintaining a full-time course load. To cover the average costs of a public four-year college in their state, a student earning the state minimum wage ($10.40 per hour) would need to work for 35 hours a week. This calculation does not consider additional expenses such as gas, car insurance, recreational activities, or unexpected costs. Moreover, it leaves little room for the estimated 30-45 hours per week required for a full-time course load.
Decrease in Net Cost of Attendance for Public Four-Year Institutions
Wages and inflation influence the outcomes of working students. According to the College Board, the net cost of attendance for in-state students at public, four-year institutions has decreased over the past six years, amounting to $19,250 in the 2022-2023 academic year, factoring in tuition and fees, room and board, books, and personal expenses after grant aid has been subtracted. The overall inflation rate has outpaced the growth rate of higher education costs, contributing to this decline.
Moreover, increasing state minimum wages have further enhanced affordability. With 24 states raising their minimum wages over the last two years, students working in low-wage jobs are more likely to benefit. When the minimum wage rises, other wages tend to follow suit, raising workers’ income in low-paying jobs. However, not all locations experience these benefits. In twenty states, the minimum wage is either not established or set to match the federal minimum wage of $7.25 per hour, requiring a student to work 51 hours per week to cover the cost of attendance.
Influence of Minimum Wage on College Affordability
If students were to pay for their college solely from their earnings, they would need to dedicate an immense amount of time towards work, leaving them with little to no free time. The following are the hours they would have to work per year to pay for the net cost of attendance at the most reasonably priced four-year colleges. While around 40% of undergraduates work while studying, according to the Department of Education, it’s improbable that they pay for their entire education. Typically, students graduate with student loan debt. Working students would need to push themselves too hard to graduate without any obligation. Full-time students usually enroll in 15 credit hours, which amounts to an estimated 30-45 hours of learning per week in and out of the classroom. Adding 25-50 hours of work to that schedule would make it unsustainable and unhelpful for their knowledge, and achieving good grades would become even more daunting.
Strategic Borrowing and Financial Aid Options for Working Students
Data from the College Board indicates that state and institutional grant aid has increased simultaneously with the decrease in the net cost of attending college. This is because college grants help to lessen the out-of-pocket expenses associated with higher education. These grants may be based on a student’s financial needs or academic achievement. Nonetheless, during the 2020-2021 academic year, undergraduates borrowed $44.7 billion in federal student loans.
Although loans may be essential to cover college expenses, students should be careful not to jeopardize their prospects of earning a degree by overworking themselves at a job that may not significantly improve their financial situation.
Balancing Work and Full-Time Course Load for Students
Here are some recommendations for students who work to manage their schedules effectively:
- Establish a manageable schedule. This applies to both your employment and education. Overcommitting to work hours or credit hours can impede your chances of success in earning your degree.
- Complete the Free Application for Federal Student Aid (FAFSA). Fill out the application as soon as possible every year. Some financial aid is first-come, first served, and waiting until the last minute might result in fewer available grant funds. And who doesn’t love grants, as they don’t need to be repaid?
- Apply for scholarships annually. Incoming first-year students are just some who should be frantically seeking scholarships. Keep an eye out for this type of “free money” throughout your college career and apply every opportunity you get.
- Borrow federal loans first. If you need to borrow money for college, look to federal student loans first. These loans will be included in your school’s financial aid package once your FAFSA has been processed. They usually come with lower interest rates and more payment alternatives than private student loans.
- Seek assistance. College can be challenging, and working while attending school exacerbates the pressure to measure up. If you require help with your schedule or want to discuss all the demands on your time, contact an advisor or student counseling. They undoubtedly want you to succeed and are well-versed in the challenges you’re encountering.
Summary
- Despite decreasing public college attendance costs and increasing minimum wages in some states, it’s still difficult for students to work through college while maintaining a full-time course load.
- A student earning the state minimum wage ($10.40 per hour) would need to work for 35 hours a week to cover the average costs of a public four-year college in their state, and this calculation doesn’t include additional expenses or the time needed for a full course load.
- The net cost of attendance for in-state students at public four-year institutions has decreased over the past six years due to a combination of factors including grants and lower inflation rates.
- Increasing state minimum wages have also helped to enhance affordability for students working in low-wage jobs, but not all states have established minimum wages that keep up with the cost of attendance.
- Working students who pay for college solely from their earnings would need to dedicate an immense amount of time towards work, leaving them with little to no free time.
- Students should borrow strategically when loans are needed, complete the Free Application for Federal Student Aid (FAFSA) as soon as possible, apply for scholarships annually, establish a manageable schedule, and seek assistance from advisors or student counseling.