DO YOU MAKE ENOUGH TO PUT YOUR KID THROUGH COLLEGE?
The price of college is high. Here's how much you need to make to afford college in your state.
by Cameron Huddleston, Go Banking Rates, June 6, 2017
Americans have been taking on more and more debt to keep up with the rising cost of college. According to the latest figures from the Federal Reserve Bank of New York, Americans owe $1.34 trillion in student loan debt. How much would you have to earn to avoid the college debt trap? Could you live comfortably while doing so?
To find out this magical number for all 50 states, GOBankingRates surveyed college costs and the amount needed to live comfortably. We used College Board data on the average price of in-state tuition and fees at public four-year institutions. Then, we calculated the cost of living in each state by identifying the dollar amounts required to cover the following necessities for a year: a mortgage, groceries, utilities (electricity), transportation and healthcare. We also calculated what residents would spend on splurges and savings using the 50-30-20 budgeting rule, in which 50 percent of income covers necessities, 30 percent covers discretionary items and 20 percent is for savings.
By combining all these figures, GOBankingRates identified the income needed to live comfortably in each state and send a child to college without taking out loans. Click through to find out how much you need to make each year in your state….
IN HAWAII, YOU’D NEED TO EARN: $126,454
- Average college tuition and fees: $10,670
- Annual necessities: $57,892
- Annual splurges: $34,735
- Annual savings: $23,157
Hawaii requires the highest annual income to pay for in-state college costs and live comfortably. At $10,670, the average in-state tuition and fees are by no means the highest in the nation. However, the cost of necessities is higher here than in any other state, which means residents need bigger paychecks to cover Hawaii’s cost of living and college costs. Considering that the median household income is $64,514, families in Hawaii might need to borrow money if they don’t have a college fund to help pay for tuition.
read … Put Kid Thru College?