If you’ve recently attended college – or know someone who has – you know this isn’t for the financially sensitive.
College is a stressful experience for many, aside from the financial burden it places on students and families.
The cost of a four-year college, including housing, has risen 12% since 2012, according to financial firm NerdWallet. The company released data last week with estimates of how much student loan debt the class of 2022 can expect by the time they graduate with a bachelor’s degree.
According to NerdWallet, by the time students graduate from a four-year college, which takes an average of five years, they will likely have close to $40,000 in student debt.
President Joe Biden has hinted at some form of student loan forgiveness in recent weeks, though details and timing are still unclear.
Here’s a look at student loan debt by the numbers, according to data from NerdWallet, the College Board, and California’s public universities.
How much loan debt Sshould students expect?
According to NerdWallet projections, students graduating from high school in 2022 and planning to attend four-year college could rack up up to $40,000 in student debt by the time they graduate.
The financial firm estimates that 42% of college graduates will rack up student loan debt while attending four-year college.
How much does it really cost to go to college?
The cost to attend college in the United States averages $22,700, an increase of 12% over the past 10 years, according to NerdWallet.
College Board data shows that the average cost of attendance has continued to rise over the decades.
The students in 1990 paid an average of $3,800 in tuition and fees at a four-year public university, while students faced an average tuition bill of $10,740 during the academic year 2021-2022, according to the College Board.
From 2002 to 2011, the cost of a four-year university, including room and board, increased by 22%.
Adding in room, board, and other expenses, students likely face a much higher cost than tuition.
In California, tuition for one year at a CSU campus exceeds $5,000, while UC tuition costs over $13,000.
Can students make their way through college these days?
As the cost of higher education continues to rise, NerdWallet experts say it’s nearly impossible to pay for college with a minimum wage job.
According to the financial website, a student earning the federal minimum wage would have to work 52 hours a week to pay the average cost of attending a public university.
In California, of course, the number of hours would be different due to the state’s higher minimum wage.
The current federal minimum wage is $7.25, while California’s is $15, nearly double the national rate. In Los Angeles, the minimum wage is expected to rise to $16.04 in July.
In San Francisco, the current minimum wage is $16.32.
What about student loan forgiveness?
President Joe Biden has hinted at the possibility of canceling some student loan debt in the future.
The president is expected to make a decision in the coming weeks. As for how much, if any, the president can eliminate, time will tell. Federal student loan repayments remain suspended for borrowers through September.
California Rep. Tony Cardenas, who met with Biden last month with members of the Congressional Hispanic Caucus, said the president could write off student debt using his executive powers.
“He said, ‘Yeah, I’m considering doing something on that front,'” Cardenas told The Associated Press. “And he also smiled and said, ‘You’re also going to like what I’m doing on this.
62% of student borrowers who responded to a survey said their debt had a negative impact on their mental health, according to polling firm Momentive. To find out if there’s any light at the end of the tunnel, we asked student financial planner Mark Kantrowitz if this debt could be forgiven and what President Joe Biden can do about it.
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