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Blog 29: College Students and the Expensive Lifestyle they don’t need to live

Photo by Vasily Koloda on Unsplash

College is EXPENSIVE and I mean ‘sell your arms and legs’ expensive. The average College Debt is around 70K and that needs to change, less people are getting a higher education and it’s frightening to see how little is being done to change that.

Some colleges are taking initiative and student aid is becoming more flexible every year. Companies are offering more scholarships and so is the government but it’s not enough. Students make on average 21,000 USD, that’s less than the least taxable, tax bracket. Students don’t pay taxes, but they also don’t make nearly enough to cover all their expenses.

In this blog, we’ll speak out about the enormous debts, the average cost, and the true cost to go to college.


Photo by Towfiqu barbhuiya on Unsplash

Debts are hugely based on what you are paying for and they can affect your credit score based on the size and type as well as the time paid off. You build credit daily as a student, by using a credit card for daily purchases.

Debts are a big part of why the higher education system is very flawed, colleges offer loans at zero interest but it’s also a trap to get you to take more and more loans, but if you take a loan from a bank, it’s about an average between three and five percent Interest.

The total college debt owed today exceeds 1.8 Trillion USD. That’s enough money to stack a tower of one-dollar bills so high it would go to Mars from the surface of the earth.

Here’s how they increase your loans and how to avoid them.

DO NOT CALL your LOAN REP, they will cause you to go into what's called Loan Forbearance. Loan Forbearance is basically just delaying the payment of a loan.

Your Loan Rep will force you into Loan Forbearance, this allows them to raise your interest rates from 3% to upwards of 9%.

Do this!

Ask them for an income-based payment plan. This will set you on the right path towards paying the loan off. If you stick to it, you can pay the loan off in maybe a year and start planning for your retirement.

The True cost to go to college

Let’s say your family earns about 75–90K a year. That’s a comfortable salary for any family, your family pays about 20K a year in taxes if you don’t use any tax incentives.

You can ask your parents to pay and if they claim you you can use the American Equal Opportunity Tax. This is a tax write-off that allows them to claim you and receive a tax benefit, which can be up to 10K annually, this only works if they claimed you on taxes for up to two years prior as the FAFSA uses tax returns up to 2 years. So if you file a report in 2021, it will use your 2019 tax returns.

Your annual costs could be somewhere like this:

*Estimated cost

Yearly Tuition( 3 semesters, taking 4 classes): 10,000*

Books: 300 All in

Food: 4,000 All in

Campus Resources(Lodging, Trnsportation, and other expenses): 7,000 (Subtract that and put rent plus other things if you live in an apartment.)

Parking: 600 all in( Not everyone needs this)

Financial Aid: about 25% average*, if annual contributions are lower than as shown tuition can possibly get 90%.

Subtract total financial Aid we get about 19,000 annually accounting for everything.

Out of state is about 20% higher.


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If you liked my content, Check out my blog and other content with all the links are below. Check out my other content, like my Instagram and YouTube, and my other social media.

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Listen as well to the On Your Own Two Feet Podcast. EP2 will be on other platforms, we’ve got a great interview coming your way, but for now, we’ll see you next time.

The On Your Own Two Feet Podcast is Available where ever you listen to podcasts Episode 3 is now available and available on all platforms.

Please check out my links to get access to all my social media including the podcast and please check the pod out as well as it takes longer than the blogs to make and edit it as well as more man-hours than this blog to do as well.


Thank You and see you next week.




Hi!! My name is Akshith. My primary goal with this blog is to create a centralized community of investors around not only the US Stock Exchange but also around concepts like Venture Capital and Real Estate Investing.

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Akshith Konda

Akshith Konda

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