Soaring tuition costs in the U.S. aren't the only obstacle to attending college these days. Many Americans struggle with a more basic task — simply figuring out how much a bachelor's degree would cost them,
A new study from Gallup and the higher-education foundation Lumina shows that a large majority of people remain convinced of the merits of going going to college. But the costs dissuade many from enrolling, while less than a quarter of respondents were able to estimate the cost of getting a bachelor's degree within $5,000 of its actual price, the analysis found.
Tuition fog
Such confusion is especially problematic as colleges push up the sticker price of attendance to nearly six digits, often as a marketing ploy to signal their exclusivity. Because few students and their families actually pay that price, thanks to financial aid and other supports, focusing on that number can be misleading, experts note.
"People hear that $100,000 and then they just make these assumptions that that's what college costs," Courtney Brown, Lumina vice president of impact and planning, told CBS MoneyWatch. "That one story becomes the myth of what it costs."
It can be challenging for individuals to anticipate the cost of college each year, as students need to reapply for financial aid annually and colleges frequently adjust their tuition and fees. This unpredictability can catch students off guard, particularly when they have limited flexibility in their budgets.
"Colleges are not providing students with enough information about the true cost of attendance," Brown stated. "The top recommendation is for institutions to be more transparent about the exact expenses associated with earning a degree."
This lack of transparency may contribute to why the majority of those surveyed were unable to accurately estimate college expenses. According to Gallup and Lumina, the average cost of attending a public, in-state college is around $15,000 per year. However, approximately half of the participants underestimated this cost, believing it to be under $10,000 annually, while a third overestimated it, placing it at over $20,000 per year.
These misconceptions can have negative consequences. For example, individuals who believe college is more costly than it actually is might be discouraged from enrolling, thereby missing out on valuable educational opportunities.
"The Hidden Costs of College"
Meanwhile, "Those that underestimate the cost may be more concerning because those are the people that are then having to take out more loans," Brown noted. "They're thinking it's not going cost as much, and then they realize, 'Oh, wait, I have to pay for room and board and food and all these other things,' and they're the ones that are having to take out more loans."
The study, which surveyed almost 14,000 people ranging from enrolled students to Americans who never attended college, also highlights the adverse impact student debt can have on people's lives.
About 7 in 10 people with student loans said they had delayed at least one important milestone because of the debt, ranging from buying a home to getting married. About 1 in 7 said they had pushed back either getting married or having children due to their college loans, the research showed.
"This is really important to pay attention to because if we want to have thriving communities, then we can't have people who are being crippled by student loan debt," Brown said. "If you can't pursue normal life activities because of this, then that's a problem for our communities, and it impacts everything — it impacts our health, it impacts our democracy, it impacts our community life."
Brown noted that tackling student debt through new repayment plans or forgiveness, as the Biden administration is doing, is important, but she added there also needs to be a focus on reining in college costs and providing more transparency to students.
According to Brown, college degrees play a crucial role in both the current and future workforce. She emphasized that individuals with higher education levels tend to be healthier, more engaged in their communities, and more content in their jobs.
However, Brown also pointed out that accessibility to education is a significant issue that needs to be addressed. She highlighted the importance of making education more affordable and finding solutions to prevent the accumulation of large amounts of student debt, which is currently burdening many individuals.
