Perhaps this partially explains why millions of Americans forego common sense when picking college.

New Study Says Cost of College Is Not a Factor

According to a recent study by Sallie Mae, the country’s leading education lender, cost is often not a factor when picking college. “40 percent of families do not limit their search based on total expense.” Now, this would be fine if 40% of families were financially solvent enough to truly bear the costs of any school their students chose. However, students are increasingly being burdened with record levels of debts.

In fact, two-thirds of students graduate with some debt, with the average debt being $19,237. One-fourth of students will graduate with nearly $25,000, and 10% will graduate with greater than 35,000.

The primary reason attending school has become so much more expensive over the last decade is that school-related expenses (including tuition and fees) rise at rates that far outpace inflation.

According to the College Board, tuition and fees have risen in 2007 at more than double the rate of inflation for both public and private schools. Notwithstanding the fact that the inflation estimate is based on the consumer price index, which historically underestimates inflation by excluding gas and energy (too volatile), the cost of going to school can still be staggering.

While the annual costs for a public school (including tuition, room, and board) averages $13,589, the costs for a private school averages $32,307.
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An Emotional Decision With Financial Implications

Although it is true that selecting a college is at least partly an emotional decision, to not do a cost-benefit analysis for one of life’s biggest expenses is not only careless, it can have tremendous financial implications for the family and the student. Because of student loan debt, graduates sometimes delay starting families, have depression, fail to adequately contribute to investments, and unfortunately go bankrupt, etc. Young adults account for the second fastest growing group filing for bankruptcy.

Moreover, the debt makes setting a good financial foundation all the more difficult for graduates in careers with low incomes, such as teachers and social workers.

To “cope” with the higher costs of schools, more students placing tuition and school-related expenses onto credit cards. Currently, credit cards account for about 18% of tuition payments. Unfortunately, due the student loan crunch, this is only expected to increase as more private lenders get out of the market.

Do Your Own Cost-Benefit Analysis When Selecting A School

College can be a fabulous investment, but like any investment, one should make sure that he or she is getting a good deal. Just because a student can go to a private school that costs 3-4 times more than the local public university does not mean that it’s 3-4 times better than the public school nor does it mean that the career and income will be 3-4 times better for the privately- educated graduate.

Some schools, such as the University of Arizona, have designed programs teaching students about the costs and benefits of taking out student loans and the long-term impact borrowing has on life decisions. However, if one’s school does not and he or she is one of the two-thirds of students without enough money to cover school, help him or her make a wise choice. Carefully consider the financial impact of school selection. An excessive debt burden may change the course of one’s life just as much as the anticipated degree.

Roshawn Watson is creator of Watson Inc, a personal finance site dedicated to empowering its readers to become debt-free, increase their financial literacy, and aggressively build wealth. Now, an avid investor and debt-free, Roshawn is sharing his insights and his journey to build tremendous wealth.

It is no secret that college tuition and expenses have been on a steady rise for many years. This has many families worried that they will not be able to afford to send their kids to college. Many even shy away from encouraging their children to dream of a college education. Trade skills are almost being forced on the younger generation. The daunting and staggering college costs are changing the way that we raise our kids.

Imagine if you were told not to dream. What if you told your parents that you wanted to be a doctor and they just had to turn you down? What does this do to the self esteem of a young child? Many families, college educated or not, struggle to keep up with housing costs and the cost of living in general. Saving for college simply is not in the cards for a lot more families than many would like to believe. What does this mean for the future of our country?

We are trending towards generation after generation of minimum wage and poverty level workers. What happens then? They can not afford college for their children and so the cycle continues. If you have been worried about affording college for your children, then there are some things that you should realize.

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So, you are wondering if college is really worth the cost. Consider college an investment. Not only is college an investment in your child’s self esteem and job satisfaction, but it is also an investment in your family and country. College graduates earn an average of sixty percent more than their peers. This makes an earning difference of almost one million dollars over a lifetime. With all of the college grants, financial aid, student and parent loans, there is almost no excuse for denying your child this investment in their future.

You may have to make short-term sacrifices to afford loan payments, but it should be well worth the effort. Students can defer payments until after they graduate. There are even payment plans that are income based, which means that your child will not have to pay more than they can afford as they get older. If you are worried about being responsible for hefty loan payments between times of employment, do not worry too much. Most student loans have deferment periods that can put your payments on hold until you are employed again. The government and loan companies have all sorts of special benefits and payment breaks for student loans.

The government does want our children to be able to afford college. We need professionals in our society to function. This does not mean that the rich are the only ones able to get educated and continue to be rich. Many loans are income based and your child can get just about as much help as they need. If they do not get as much as you need for actual college costs, then there are parent PLUS loans and private student loans to consider. These are available on top of Federal Student Loans, scholarships and financial aid. Do not stifle your child’s dreams. Encourage them to make a better life for themselves as well as their children and grandchildren. Choosing to go to college can affect many generations to come and, yes, our families’ futures are worth the cost.

Characteristics of gifted individuals: If 75 per cent of the following 37 characteristics fit you, you are probably a gifted adult.
Are you a good problem solver?
Can you concentrate for long periods of time?
Are you a perfectionist?
Do you persevere with your interests?
Are you an avid reader?
Do you have a vivid imagination?
Do you enjoy doing jigsaw puzzles?
Often connect seemingly unrelated ideas?
Do you enjoy paradoxes?
Do you set high standards for yourself?
Do you have a good long-term memory?
Are you deeply compassionate?
Do you have persistent curiosity?
Do you have a good sense of humor?

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Are you a keen observer?
Do you love mathematics?
Do you need periods of contemplation?
Do you search for meaning in your life?
Are you aware of things that others are not?
Are you fascinated by words?
Are you highly sensitive?
Do you have strong moral convictions?
Do you often feel out-of-sync with others?
Are you perceptive or insightful?
Do you often question rules or authority?
Do you have organized collections?
Do you thrive on challenge?
Do you have extraordinary abilities and deficits?
Do you learn new things rapidly?
Feel overwhelmed by many interests/abilities?
Do you have a great deal of energy?
Often take a stand against injustice?
Do you feel driven by your creativity?
Love ideas and ardent discussion?
Did you have developmentally advanced childhood?
Have unusual ideas or perceptions?
Are you a complex person?
*Adapted from the Institute for the Study of Advanced Development.

One way to identify gifted individuals is their style of thinking. They usually employ divergent thinking. Their style is original and they tend to come up with crazy ideas, which other people find strange. But sometimes it is these crazy ideas that go on to become the most recognized ones of our time.

Gifted individuals face many challenges, with one of biggest being the inability to be correctly identified by the individuals who should be helping them realize their true potential.

As with any other student, it would be a shame if parents, teachers and peers did not recognize the strengths of gifted students and allow them to reach their true potential. But what must educators and parents do in order to make sure this does not happen?

However until more help is readily available, what are the gifted to do?

Sadly, not enough is known about giftedness. More time and energy need to be spent identifying traits among the gifted, especially since it is these students who go on to contribute much to improving the state of our world.

Acknowledge the possibilities, identify your capabilities and allow yourself to be different. You never know, you may be the next Einstein.

Now its your turn to talk. Have your say: