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Pop Quiz
Name the one commodity whose average price tag has consistently outpaced inflation for the last 10 years running.
If you answered a college education, you are correct.
The rapid rise in the cost of higher education today is a hot topic no matter where you turn — especially for the 16 or so million1 undergraduates enrolled in public universities today. Those students are facing soaring tuition costs that measure more than three times what their parents would've paid in the early to mid-1980s2.
Today's average college freshman can expect to pay roughly $12,000 for tuition and fees, room and board, books, transportation, and other miscellaneous expenses incurred during the first year on campus. (Double that — and then some — for those who attend private universities. The College Board reports an average cost of more than $27,000 per year for private U.S. institutions.)
The bottom line, education officials say, is that college is expensive.
But on the other hand, it may prove more costly not to attend that 8 a.m. Contemporary Lit. class. Recent reports show that bachelor's degree recipients earn up to 80 percent more than someone with only a high school diploma — over a lifetime, that's a gap in potential earnings of more than $1 million3.
Financing an Education
The College Board found that more than half of today's college students receive some sort of financial aid award, including grants, scholarships, and local community assistance. In addition, approximately 42%4 of undergraduate students borrow money through the Federal Family Education Loan Program (FFELP) to secure subsidized and unsubsidized funding to pay for school.
However, recent reports show that today's average federal financial aid award covers only 72%5 of an undergraduate's demonstrated need.
The result: More and more of today's college students are being forced to examine other financing options. Those options almost always include — higher education industry experts say — private, alternative loans.
Your options
As a member of the NAHB Student Chapters Program, you and your family members can access the Capital for Knowledge® Loan Program, a private financing solution designed to cover education-related costs, including tuition, room and board, books, fees, and even a personal computer.
NAHB Student Chapter members can utilize the program for their own schooling needs, or to help fund a family member's education. The program is equipped with a complete line of loan options designed for:
- Undergraduate/graduate studies
- Private, K-12 schools
- Technical and professional training
- Education loan consolidation
The Capital for Knowledge Loan Program is offered to NAHB Student Chapter members at absolutely no charge. To take advantage of the Capital for Knowledge Loan Program, call 888-651-5626 or, visit capital4u.net to apply.
With the Capital for Knowledge Loan Program, financing a college education has never been easier.
1 National Center for Education Statistics: 1999-2000 National Postsecondary Student Aid Study
2 The College Board: Trends in College Pricing: 2002
3 The College Board: Trends in College Pricing: 2002
4 National Center for Education Statistics: 1999-2000 National Postsecondary Student Aid Study
5 National Association of Student Financial Aid Administrators
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