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<ul class="summary-list"><li>Some <keyword id="162746" type="General" weightage="20" keywordseo="american-universities" source="Orion">American universities</keyword> estimate their total cost of attendance will exceed $90,000 next year.</li><li><a target="_blank" href="https://www.businessinsider.com/college-tuition-costs-too-much-make-degrees-matter-less-jobs-2023-9">Tuition and fees at universities</a> have continued to climb, even when adjusted for inflation.</li></ul>The price of getting a degree has continued to climb at American universities, with the <a target="_blank" href="https://www.businessinsider.com/average-cost-colleges-universities-tuition-living-fees-books-in-state-2024-2">cost of some schools</a> reaching a new threshold. It's leaving many wondering if it's a good investment.<br /><br />Schools like New York University, Tufts, the University of Pennsylvania, and Yale are pegging <a target="_blank" href="https://www.businessinsider.com/colleges-pay-best-for-their-cost-return-on-investment-roi-2023-4">the total cost of university attendance</a> — which covers tuition, housing, food, supplies, books, and more — for the 2024-25 school year at over $90,000, according to their websites.<br /><br />NYU, already known for its high fees, estimates the total cost for the next school year will be $93,184, with tuition ($62,796) and food and housing ($24,652) listed as the most expensive line items. The total is up 3.3% from the $90,222 estimated for this school year.<br /><br />And while that's much higher than the typical sticker price of private four-year institutions — the average was $41,540 this school year, per the <a target="_blank" href="https://research.collegeboard.org/trends/college-pricing/highlights">College Board</a> — the figures reflect both the <a target="_blank" href="https://www.businessinsider.com/how-much-food-healthcare-housing-cost-most-expensive-us-cities-2024-2">growing costs of living in American cities</a> and the ever-increasing costs of education.<br /><br />Tuition and fees at private national universities have increased by about 40% over the past 20 years, adjusted for inflation, according to <a target="_blank" href="https://www.usnews.com/education/best-colleges/paying-for-college/articles/see-20-years-of-tuition-growth-at-national-universities">U.S. News &amp; World Report</a>. When <em>not</em> adjusted for inflation, that's a massive jump of about 132%. Out-of-state and in-state tuition and fees at public universities have risen by about 38% and 56%, adjusted for inflation, over the same period.<br /><br />A 2023 Institute for Higher Education Policy <a target="_blank" href="https://www.ihep.org/college-affordability-still-out-of-reach-for-students-with-lowest-incomes-students-of-color/">analysis</a> of Department of Education data found that these soaring prices were leaving students across racial and ethnic groups with "unmet need," defined as the difference between what families can afford and the cost of college. It's especially affecting Black and Latinx students.<br /><br />Universities are quick to note that very few (and usually only the wealthiest) students actually pay the sticker price, and more top schools now guarantee they'll meet the financial needs of all accepted students. To their credit, the net cost of private four-year colleges has actually fallen over the past decade, when adjusted for inflation, per the College Board.<br /><br />Still, the Institute for Higher Education Policy found that for families in the lowest income bracket, the net cost of college — which takes into account <a target="_blank" href="https://www.businessinsider.com/how-to-get-more-financial-aid-student-loans-fafsa-update-2024-2">grants and scholarships</a> — amounted to 148% of their annual household income.<br /><br />The  result? A generation <a target="_blank" href="https://www.businessinsider.com/high-paying-job-without-college-degree-test-jobs-2023-12">wondering if college is worth it</a>.<br /><br />In a Business Insider and YouGov survey conducted last year, 46% of <a target="_blank" href="https://www.businessinsider.com/gen-z-value-of-college-higher-education-student-debt-tuition-2023-12">Gen Z respondents said they didn't think college was worth the cost</a>. Gen X and baby-boomer respondents — the parents who, in many cases, are footing the bill — were even more disparaging, with 54% and 57% saying <a target="_blank" href="https://www.businessinsider.com/college-tuition-costs-too-much-make-degrees-matter-less-jobs-2023-9">college wasn't worth it</a>.<br /><br />That sentiment could speed up the <a target="_blank" href="https://www.businessinsider.com/college-enrollment-declining-student-debt-job-market-politics-2023-3">decadelong decline in college enrollment</a>.<br /><br />"When I'm talking to younger people of Gen Z, it seems like they're very aware" of the price, which "might be a little bit of a shift" from prior generations, Ana Hernández Kent, a senior researcher with the Institute for Economic Equity at the Federal Reserve Bank of St. Louis, told Business Insider last year. "Instead of just a blanket approach and assuming that they need to go to college and that it's going to pay off, they're much more critical."<br /><br />

Tuition now costs a whopping $90,000 a year or more at some US universities 

<ul class="summary-list"><li>Lou and Jennifer Zeidberg raised their kids in the US.</li><li>Both their kids went to <keyword id="20186836" type="General" weightage="20" keywordseo="college" source="keywords">college</keyword> in <keyword id="19897269" type="General" weightage="20" keywordseo="Europe" source="keywords">Europe</keyword>: Their son attends college in France, and their daughter will attend college in Spain. </li></ul>When it was time for his children to apply to <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/is-college-worth-it">college</a>, Lou Zeidberg faced a conundrum.<br /><br />Part of him wanted them to experience the traditional American college life he had as a student at the University of California, Berkeley.<br /><br />"When I was in college, I was really into that stuff," Lou, a marine science lecturer at California State University, told Business Insider about collegiate life. "So when they were little, I thought, oh, you'll be a football player, and you'll want to go to a college with a <a target="_blank" class="" href="https://www.businessinsider.com/college-football-recruiting-athletes-locker-rooms-training-facilities-texas-florida-2024-2">big football team</a>, which is a very American thing."<br /><br />However, the <a target="_blank" class="" href="https://www.businessinsider.com/my-son-applying-to-many-colleges-stressful-2023-11">university application process</a> was lengthy and stressful for his son, Jacob. Jacob <a target="_blank" class="" href="https://www.businessinsider.com/successful-ivy-league-college-application-look-insider-2024-5">applied</a> to almost 30 schools in 2019, only to be waitlisted or rejected from all of them. Eventually, he pivotedandchose to attend a junior college in San Diego.<br /><br />"It was demoralizing on a level of extreme," said Lou's wife, Jennifer, a physician. "Our son did well in high school, did well on his SATs, and was not accepted at schools that are supposed to support California students. It was really such a bizarre thing to watch."<br /><br />So when a patient told her about her children's experience attending college in the <a target="_blank" class="" href="https://www.businessinsider.com/american-moved-from-japan-to-netherlands-happier-less-lonely-2024-7">Netherlands</a>, Jennifer was inspired.<br /><br />Using a service called "Beyond the States," the family looked through European college options and found one that ticked Jacob's <a target="_blank" class="" href="https://www.businessinsider.com/how-to-choose-college-campus-tour-data-2023-12">criteria</a>. It was a three-year program, had hands-on teaching methods, offered internship opportunities — and was all the way in Toulouse, France.<br /><br />Jacob applied to Toulouse Business School and received an interview within two days. Two weeks later, he received an offer.<br /><br />"It was so shockingly different," Jennifer said, adding that the process took place over Christmas.<br /><br />Lou said he was <a target="_blank" class="" href="https://www.businessinsider.com/daughter-heading-college-considered-moving-close-campus-2024-2">worried and excited</a> about his son moving so far from home.<br /><br />"College was an important experience growing up, so I was jealous. This kid was going to France!" he said with a laugh. "I wanted him to go."<br /><br /><h2>Adapting to college in Europe</h2>Jacob said he initially faced <a target="_blank" class="" href="https://www.businessinsider.com/paris-syndrome-tiktok-reasons-to-visit-paris-2023-7">culture shock</a> and language barriers, but he took French lessons and gradually assimilated into the French culture. He visits his family in Monterey Bay, California, during Christmas and over the summer — "Kind of like your standard college kid experience," said Lou.<br /><br />  <div type="image" title="A boy standing on a balcony that overlooks Toulouse" height="1536" width="2048" msid="111976163" hostid="261"></div>Being in Europe also gave Jacob the advantage of <a target="_blank" class="" href="https://www.businessinsider.com/boomer-seeing-the-world-never-too-late-to-travel-2024-3">traveling and seeing a world</a> beyond the comfort of his home.<br /><br />"When Jacob takes a little weekend away, he goes to Morocco. He's made friends in Morocco, Saudi Arabia, and Cyprus," said Jennifer. "I mean, his passport is almost full!"<br /><br /><h2>Following in her brother's footsteps</h2>After her brother struggled with the <a target="_blank" class="" href="https://www.businessinsider.com/college-applications-advice-admissions-expert-apply-2023-10">American college application</a> process, Phoebe, 18, also set her eyes on Europe.<br /><br />She had graduated cum laude from high school and had a good chance of getting into colleges in California, Jennifer said.<br /><br />But Phoebe already had a taste of the European college experience. In her junior year, she spent 11 days on an overseas program at IE University in Spain. She liked the class sizes of 30 to 40 students.<br /><br />"It was really hard to convince our daughter to go through the American process," Jennifer said.<br /><br />So when it came to applying for colleges, she only applied to one university: IE University. A few weeks later, she was offered a spot to pursue a dual degree in Law and International Relations.<br /><br /><h2>Amid soaring <keyword id="20752497" type="General" weightage="20" keywordseo="tuition-fees" source="keywords">tuition fees</keyword> in the US, college in Europe was a compelling choice</h2>The <keyword id="22630584" type="General" weightage="20" keywordseo="Zeidberg-family" source="keywords">Zeidberg family</keyword>'s decision to seek higher education opportunities outside of the US comes as <a target="_blank" class="" href="https://www.businessinsider.com/cost-us-universities-wildly-expensive-education-tuition-fees-america-2024-3">tuition costs domestically continue to hit new highs</a>.<br /><br /><a href="https://www.usnews.com/education/best-colleges/paying-for-college/articles/see-20-years-of-tuition-growth-at-national-universities" target="_blank"><u>U.S. News &amp; World Report</u></a> said last year that among colleges in its annual rankings, tuition fees at private universities increased by 40% from 2004 to 2024, while in-state tuition fees for public universities rose by about 56% over the same time period, adjusted for inflation.<br /><br />Although grants and scholarships are available, <a target="_blank" class="" href="https://research.collegeboard.org/media/pdf/Trends%20Report%202023%20Updated.pdf">data from the College Board</a> showed that around 51% of people who graduated with a bachelor's degree in the 2021 to 2022 school year still graduated with <a target="_blank" class="" href="https://research.collegeboard.org/media/pdf/Trends%20Report%202023%20Updated.pdf">student debt</a>. The average debt per student was $29,400.<br /><br />Many Americans have become <a target="_blank" class="" href="https://www.businessinsider.com/college-tuition-costs-too-much-make-degrees-matter-less-jobs-2023-9">disillusioned with the high cost</a> of college. In July 2023, <a target="_blank" class="" href="https://www.businessinsider.com/gen-z-value-of-college-higher-education-student-debt-tuition-2023-12">Business Insider and YouGov surveyed</a> over 1,800 Americans on their attitudes toward higher education. Among the more than 600 Gen Z respondents, 46% agreed that college is not worth the financial cost.<br /><br />Isabella Ambrosio, who grew up in Chicago and moved to Ireland when she was 15,previously wrote for BI that four years of <a target="_blank" class="" href="https://www.businessinsider.com/moved-to-ireland-from-us-benefits-drawbacks-college-save-money-2024-6">college in Ireland</a>cost the same as one year at a school she had wanted to attend in the US.<br /><br />Ambrosio also found benefits to life abroad beyond merely the financial. She enjoyed immersing herself in the Irish culture and its bustling restaurant scene.<br /><br />Similarly, Dalia Goldberg, an American from Philadelphia, wrote for BI that she considered college in the US but was daunted by the steep fees. She eventually <a target="_blank" class="" href="https://www.businessinsider.com/college-overseas-abroad-canada-mcgill-university-no-debt-2024-7">opted for a university in Montreal</a> and graduated debt-free in 2014.<br /><br /><h2>Multiple benefits to studying abroad</h2>For the Zeidberg family, the lower tuition fees in Europe were an added bonus.<br /><br />A three-year bachelor's program at <a target="_blank" class="" href="https://www.tbs-education.com/program/bachelor-in-management/admission-fees/">Toulouse Business School</a> costs around $13,400 a year, and a dual degree program at <a target="_blank" class="" href="https://www.ie.edu/university/admission/payment-methods/">IE University</a> costs around $32,700 a year, per the university's website. Phoebe, who earned a scholarship and has a portion of the fees offset, would have to pay around $6,500 yearly.<br /><br />In comparison, the tuition fee for a California resident to attend UC is around $14,436 yearly, excluding housing and meal fees, according to the <a target="_blank" class="" href="https://admission.universityofcalifornia.edu/tuition-financial-aid/tuition-cost-of-attendance/">University of California</a> website. At <a target="_blank" class="" href="https://www.calstate.edu/attend/paying-for-college/Pages/campus-costs-of-attendance.aspx">California State University</a>, where Lou teaches, undergraduates pay around $5,742 a year for tuition.<br /><br />Although the family would have been able to afford Californian schools, Jennifer told BI their children ultimately wanted to explore a life outside the US.<br /><br />"It was really more the experience of truly going away, not just from home, but from the comfort of what they've known their whole lives," she said.<br /><br />Lou added that he recognizes their family is fortunate to provide their children with options: "We just tried to show them as much of the world as we could so that they would pick something they like."<br /><br /><em>Do you have a story about choosing to attend college outside the US that you want to share? Get in touch with the reporter, Erin: </em><a target="_blank" href="mailto:eliam@businessinsider.com"><em><u>eliam@businessinsider.com</u></em></a><em>.</em><br /><br /><em>Correction: July 26, 2024 — An earlier version of this story misstated the inflation-adjusted increase for in-state tuition at public universities from 2004 to 2024, as indicated by U.S. News &amp; World Report. It was 56%, not 38%.</em><br />

Their son did well in high school and on his SATs, but got rejected from 30 US colleges. So they set their sights on Europe.

<p>Tuition fees at American colleges and universities are among the highest in the world, according to a report released Tuesday by the<span> </span><a href="http://www.oecd-ilibrary.org/docserver/download/9617041e.pdf?expires=1505228195&amp;id=id&amp;accname=guest&amp;checksum=011E4809D5EA876ABB2C6FB00C779D17" target="_blank" rel="noopener noreferrer">Organisation for Economic Co-operation and Development.</a></p><p><span>Of the 35 member countries in the OECD average, the US has the highest average tuition at both public and private colleges.</span></p><p>Average public tuition in the US is $8,202 annually, compared to Chile's $7,654, the country with the second-highest tuition cost.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Mike Nudelman/Business Insider</span></p></div><p></p></div></div></p><p>About one-third of countries do not charge tuition for public institutions, and in 10 countries, tuition fees are less than $4,000, according to the report.</p><p>At private colleges, the gap between US and other OECD tuition fees was even starker. America's average of $21,189 was much higher than the rest. </p><p><div class="KonaFilter image-container"><div class="image on-image"><p class="source"><span>Mike Nudelman/Business Insider</span></p></div><p></p></div></p><p>For the comparison, Business Insider included countries which have both private and public colleges. The UK, for example, only has private colleges and was excluded from the chart analysis, but the OECD estimates that tuition in the UK is $12,000 annually. </p><p>Most members of the OECD are highly developed countries with high income levels. But it doesn't include every country in the world that has both these qualities, since another charge of the group is to promote democratic ideals. As such, countries like China or Singapore are not members of the OECD. But even these <a href="https://www.cnbc.com/2016/10/12/singapore-university-costs-rise-38-since-2007-with-law-degrees-increasing-the-most.html" target="_blank" rel="noopener noreferrer">highly developed countries don't have average</a> college <a href="http://www.cucas.edu.cn/feature/index/2325/2325">tuition costs as high as those that exist in the United States.</a></p><p>Despite the fact Americans face higher tuition costs than the rest of the world, the US does have options in place to make financing an <keyword id="6355445" type="UNKNOWN" weightage="60" keywordseo="education">education</keyword> possible. The OECD estimates that at least 75% of US students benefit from public loans, scholarships, or grants.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/christian-siriano-fashion-designer-shares-advice-new-entrepreneurs-tool-business-2016-11">Fashion designer Christian Siriano shares the most important tool for entrepreneurs who are just starting out</a></h3>        <div>                    </div>    </div>

It costs more to go to college in America than anywhere else in the world

<ul class="summary-list"><li>A drop in government funding has prompted Chinese universities to raise tuition by up to 54%.</li><li>The increase in tuition could pose a significant burden to rural families, says economist Keyu Jin.</li></ul><p>China's Gen Z has been dealt a bad hand. The generation has to contend with the country's <a href="https://www.businessinsider.com/china-debt-economy-implode-stock-market-wall-street-xi-jinping-2023-6" target="_blank" rel="noopener">slowing economy</a> and <a href="https://www.businessinsider.com/china-youth-government-jobs-iron-bowl-unemployment-2023-3" target="_blank" rel="noopener">soaring youth unemployment rate</a>. And a recent decision to hike college tuition by up to 54% this year means life is just going to get that much harder.</p><p>The hikes are set to kick in this year, with some universities in the heavily populated <a href="https://www.statista.com/statistics/1391692/china-population-of-jilin-province/">Jilin</a> and <a href="https://www.statista.com/statistics/1084185/china-number-of-residents-in-urban-and-rural-areas-in-sichuan/">Sichuan</a> provinces raising tuition by up to 41%, per <a href="https://www.reuters.com/world/china/chinese-universities-raise-tuition-fees-by-much-54-2023-06-06/" target="_blank" rel="noopener">Reuters</a>. The provinces' combined population of over 107 million residents is more than two and a half times that of <a href="https://www.statista.com/statistics/183497/population-in-the-federal-states-of-the-us/">California's.</a></p><p>The price increases vary by the university. The East China University of Science and Technology in Shanghai said in a June 4 <a href="https://zsb.ecust.edu.cn/2023/0604/c2308a156689/page.htm" target="_blank" rel="noopener">statement</a> that the annual tuition fees for liberal arts majors would increase by 30% to 6,500 Chinese yuan, or $901. The Shanghai-based university's STEM and physical education majors will see a steeper hike of 54%, it announced.</p><p>In comparison, Shanghai Dianji University said in a <a href="https://zhaosheng.sdju.edu.cn/2023/0517/c4864a116841/page.htm">statement</a> on May 17 that it would be raising tuition for STEM majors by 40% to $971. Management, economics, and literature majors at the same university will see a relatively smaller increase of 30%. </p><p>Studying at a Chinese university "costs far less" than in the US and UK, according to <a href="https://www.timeshighereducation.com/student/advice/cost-studying-university-china" target="_blank" rel="noopener">Times Higher Education.</a> Annual tuition for an undergraduate degree at Peking University, one of China's leading universities, <a href="https://pku.cucas.cn/fee-structure/" target="_blank" rel="noopener">ranges between $3,589 to $4,141</a>. That is roughly 15 times cheaper than Harvard College, Harvard University's undergraduate college, which <a href="https://registrar.fas.harvard.edu/tuition-and-fees" target="_blank" rel="noopener">charges $54,269 in annual tuition</a>. </p><p>The relatively low cost of college tuition also means that <a href="https://www.insider.com/meet-the-typical-chinese-millennial-income-housing-ambitions-2021-7#chinese-millennials-have-basically-no-student-loan-debt-because-school-is-so-cheap-4">student debt is virtually non-existent in China</a>. But the sudden hike in fees may put some financial pressure on those earning a lower income.  </p><p>Keyu Jin, an associate professor at the London School of Economics and the author of "The New China Playbook," told Insider that the fee hike would cause tuition to "average around 15,000 Chinese yuan a year in the pilot cities." She added that this would be a "significant burden" for rural families who earn "an average income of 20,000 Chinese yuan."</p><h2>The tuition fee hike was a long time coming</h2><div type="image" title="Graduates pose with their diplomas during Qingdao University of Science &amp; Technology's Commencement Ceremony in June 2023." height="3263" width="4351" msid="101564618" hostid="261" sizebytes="338592"></div><p>Most Chinese universities are publicly funded. However, <a href="http://www.moe.gov.cn/srcsite/A05/s7499/202303/W020230328543247647092.pdf" target="_blank" rel="noopener">the education ministry's funding for higher education was slashed by 3.7%</a> from 2022 to 2023, which means universities have resorted to tuition fee hikes to close the gap.</p><p>The fee hikes have not gone down well with the Chinese, who question the timing of the increases given the dire state of the Chinese economy.</p><p>"Tuition fee hike? Has the economy even shown any growth? The pandemic is just over. Forget economic growth, the economy isn't even doing as well as before. Why are they raising tuition fees now? It would have been alright if the economy had grown, but there hasn't been any growth at all. So what is the hike for?" read a comment to a <a href="https://weibo.com/1914186435/N3Q5tyAAo?type=repost" target="_blank" rel="noopener">Weibo</a> post on the topic.</p><p>"I'm speechless. It's fine for the prices of other things to increase, but tuition fees too?" another Weibo user wrote.    </p><p>But some academics think the fee hikes are not as astronomical as the top-line figures suggest.</p><p>Wu Xiaogang, a sociology professor at New York University Shanghai, told Insider the rate of the hikes is likely equivalent to smaller, yearly increases over the last decades.</p><p>"A 40% increase seems high, but if you do it annually, then you don't feel any difference," said Wu. </p><p>"China has not increased its tuition fees for 20 years, and this was long overdue, as income and cost have risen significantly," said <a href="https://www.imd.org/faculty/professors/mark-greeven" target="_blank" rel="noopener">Mark Greeven</a>, a professor at the International Institute for Management Development China, a business school.</p><h2>Youth unemployment in China is soaring</h2><div type="image" title="College students choosing jobs at a graduate job fair in Huai 'an City, East China's Jiangsu Province." height="2825" width="3769" msid="101564620" hostid="261" sizebytes="276272"></div><p>Making the higher education system accessible has been a key driver for China's high tertiary education enrollment rate. China's enrollment rate for higher education <a href="https://www.statista.com/statistics/1113954/china-tertiary-education-college-university-enrollment-rate/" target="_blank" rel="noopener">soared to 57.8% in 2021, up from 3.4% in 1990,</a> per Statista.</p><p>NYU Shanghai's Wu told Insider that in the US, students would "actually respond to market signals" and choose "not to go to college" if getting a degree doesn't pay off.</p><p>"But in China, we don't see this. It is always the case that people say that for education, the higher, the better. It is almost like a cultural norm to pursue higher education if you have this chance," Wu added.</p><p>And the burden of paying for college doesn't manifest in the form of heavy student debt as in the US: Families, instead, shoulder that weight. </p><p>"Chinese households are dynastic. Instead of getting into heavy debt, the parents will run down their savings," said Jin. "The youth already borrow a lot for consumption, so education debt may crowd out some consumer debt." </p><p>But this means that the Chinese Gen-Zer will be kickstarting their working lives in a chaotic job market where <a href="https://www.businessinsider.com/unemployment-china-gen-z-youth-graduates-big-tech-2022-6" target="_blank" rel="noopener">one in five people their age are unemployed.</a></p><p>And all this is taking place in an environment where the country's millennials — Gen Z's college seniors and workplace superiors — are <a href="https://www.insider.com/disenchanted-chinese-youth-join-a-mass-movement-to-lie-flat-2021-6" target="_blank" rel="noopener">"lying flat" and giving up on the hustle life.</a> Or worse, <a href="https://www.insider.com/chinese-people-letting-it-rot-social-protest-trend-2022-10" target="_blank" rel="noopener">"letting it rot,"</a> and choosing to languish and do absolutely nothing in a quiet rebellion against societal norms. </p><p>"In many ways, economic opportunities are not going to be as plentiful, while competition will be more fierce, and we simply won't see the kind of income growth observed in the last few decades," said Jin. "Reduced expectations, greater angst, and anxiety is something that the Chinese people have not experienced for the last forty years."</p><p>The dearth of economic opportunity has sowed widespread disenchantment among China's youth. It has even <a href="https://www.insider.com/chinese-people-letting-it-rot-social-protest-trend-2022-10?_gl=1*d4woqi*_ga*MzI5NjQxMDUwLjE2ODYxMTgwNjI.*_ga_E21CV80ZCZ*MTY4Njk4NDAzNi43NC4xLjE2ODY5ODU1NjUuMi4wLjA." target="_blank" rel="noopener">spawned social movements calling for the rejection of the corporate rat race</a>. </p><p>"China's demographic challenges are already a major economic headwind. Its structural economic challenges will only be exacerbated if <a href="https://www.businessinsider.com/china-millennial-ditch-white-collar-jobs-cashier-barista-work-2023-6" target="_blank" rel="noopener">an entire generation of young people is underemployed</a>," Shehzad Qazi, the managing director of China Beige Book International, a US-based data provider, told Insider.</p><p>NYU Shanghai's Wu believes that the wave of unemployment among China's youth could have disastrous consequences on their career development.</p><p>"Say, for instance, that someone doesn't get a job in five years. Then that time is gone. And because younger people will come in, say, five years later when the economy gets better: Instead of hiring people who could not get a job for five years, I would rather hire newer, fresher graduates," said Wu.</p>

Life as a Chinese Gen-Zer just got a lot harder thanks to the Chinese government hiking college tuition by up to 54%

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="source"><span>Reuters</span></p><p class="caption">Flora Bernat, one of the main organisers of recent big protests in Hungary against a planned tax on internet traffic, poses for a portrait in Aurora, a bar where the organiser meet regularly.</p></div><p></p></div></div>It's that time of year where we're full of festive cheer but have empty wallets.</p><p>For those at university, the thought of heading back to student poverty is a little back daunting over Christmas, especially in Britain and the US where tuition fees eat into most people's budgets.</p><p>Britain and the US are famous for high university tuition fees, but they actually don't top the list of places that parents spend most of their income on higher education for their children.</p><p>Online B2B supplier site <a href="http://www.expertmarket.co.uk/most-expensive-places-for-university">Expert Market analysed tuition fee data</a> from the Quacquarelli Symmonds (QS) Top Universities, for academic year 2014/2015 and the Gallup Median Self-Reported Income report data in 2013.</p><p>It found the <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> and US are actually somewhere in the middle of the top 11.</p><p>The list, which is based on tuition fees for a standard bachelor's degree as a percentage of household incomes around the world, shows that some parents are willing to spend over 90% of their income on a standard bachelor's degree at public institutions for their kids.</p><p>Business Insider took a look and added updated info about country income.</p>

The 11 most expensive countries for a university education

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="source"><span>Reuters</span></p><p class="caption">Flora Bernat, one of the main organisers of recent big protests in Hungary against a planned tax on internet traffic, poses for a portrait in Aurora, a bar where the organiser meet regularly.</p></div><p></p></div></div>Britain and the US are famous for high university tuition fees, but they actually don't top the list of places that parents spend most of their income on higher education for their children.</p><p>Online B2B supplier site Expert Market analysed tuition fee data from the Quacquarelli Symmonds (QS) Top Universities, for academic year 2014/2015 and the Gallup Median Self-Reported Income report data in 2013.</p><p>It found the <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> and US are actually somewhere in the middle of the top 11.</p><p>The list, which is based on tuition fees for a standard bachelor's degree as a percentage of household incomes around the world, shows that some parents are willing to spend over 90% of their income on a standard bachelor's degree at public institutions for their kids.</p>

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="source"><span>Getty</span></p><p class="caption">A general view as Shingai Shoniwa and Dan Smith of the Noisettes launch their new single in Raffles Club called 'That Girl'' on August 15, 2012 in London, United Kingdom.</p></div><p></p></div></div>The <a href="http://www.almr.org.uk/category/press-releases/">Association of Licensed Multiple Retailers (ALMR)</a>, which represents licenced hospitality venues, revealed that the number of British nightclubs fell to just 1,733, from 3,144 in 2005.</p><p>In turn, because it is a large employer of Britons aged 18-24 years old, this has hurt the youth employment sector.</p><p>Nightclub managers are mainly blaming the rise in student tuition fees and the smoking ban for the closure of the venues as its target audience is poorer and so finding other places or drinking at home.</p><p>"I don't think the number of people going clubbing at the weekend is any different to where it was 20 years ago, but I do think they are going to different places," said Logan Presencer, the boss of iconic club chain, Ministry of Sound, <a href="http://www.bbc.co.uk/newsbeat/article/33713015/uk-nightclubs-closing-at-alarming-rate-industry-figures-suggest">to the BBC</a>.</p><p>"With the advent of later pub opening hours, the smoking ban, student tuition fees and the squeeze that a lot people are under financially since the recession," he explains, "I think people are finding different ways and different places to go out."</p><p>Tuition fees for university used to be capped at £1,000 ($1,549) per year, from 1998 to 2004. However, the cap was lifted and the government said that universities can charge students up to £9,000 ($13,941) per year. Currently, 64 universities charge that full amount, while 59 charge at least £6,000 ($9,294) per year.</p><p>Meanwhile, the smoking ban from public venues, such as pubs, nightclubs, and restaurants, was enacted in 2007 and is still largely being blamed for the dwindling number of these types of venues.</p><p>The ALMR warned that more closures of nightclubs could also impact Britons' youth employment sector in the longer run, due to its large intake of youngsters.</p><p>Last year, nightclubs "<a href="http://www.bbc.co.uk/newsbeat/article/33713015/uk-nightclubs-closing-at-alarming-rate-industry-figures-suggest">generated 37,000 new jobs with over 80% of these for 18-24 year olds.</a>" According to the Office for National Statistics, <a href="http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN05871">729,000 young people aged 16-24 were unemployed in March to May 2015</a>.</p>

Student tuition fees and the smoking ban are killing off British nightclubs

<ul class="summary-list"><li>US lawmakers are debating student debt-relief proposals, seeking help for people saddled with loans.</li><li>But the proposals on the table right now are not a comprehensive solution, experts say. </li><li>The problem is a cycle of student loan accumulation, and little <keyword id="6355445" type="UNKNOWN" weightage="100" keywordseo="education">education</keyword> about how this debt works.</li></ul><p>It's a familiar sight each year: a sea of soon-to-be <keyword id="6360288" type="UNKNOWN" weightage="60" keywordseo="College">college</keyword> graduates, seated in their caps and gowns, with families and friends watching proudly as they march, one-by-one, across the stage to receive their hard-earned degrees.</p><p>But for many of the 35 million student-loan borrowers in the US, the celebration is short-lived. Months out of college, their debts become due and payable, and for some, it will be a heavy burden.</p><p>Since entering office, President Joe Biden has encountered immense pressure to aggressively address the student-loan crisis.</p><p>Democratic Sens. Elizabeth Warren and Chuck Schumer in February announced a <a href="https://www.warren.senate.gov/newsroom/press-releases/warren-schumer-pressley-colleagues-president-biden-can-and-should-use-executive-action-to-cancel-up-to-50000-in-federal-student-loan-debt-immediately">plan</a> to wipe out up to $50,000 in student loans per borrower. But Biden <a href="https://www.businessinsider.com/biden-rejects-democratic-plan-student-loan-debt-2021-2">dismissed it.</a></p><p>"I will not make that happen," he said. "I'm prepared to write off $10,000 in debt, but not 50," he said. "I don't think I have the authority to do it."</p><p>There is support for student debt relief across party lines. According to a <a href="https://theharrispoll.com/student-debt-reform/">national survey conducted by the Harris Poll</a> in December, 55% of Americans favor total student loan forgiveness. And around 64% of respondents said they support writing off a fixed amount, like $10,000.</p><p>Education debt has been rising steadily for about a decade, experts told Insider. It's also been holding people back.</p><p>"Students who graduate with debt may put off life milestones such as buying a car, owning a home, getting married, or entering certain low-paying professions like teaching or social work," a 2006 <a href="https://www.aascu.org/uploadedFiles/AASCU/Content/Root/PolicyAndAdvocacy/PolicyPublications/StudentDebtBurden.pdf">report</a> from the American Association of State Colleges and <keyword id="48403" type="ORGANIZATION" weightage="60" keywordseo="universities">Universities</keyword> says.</p><p>The problem persists, and has only gained momentum during the COVID-19 pandemic, which has shuttered businesses across the US and canceled out millions of jobs in the last year.</p><p>"Former students have not been able to get rid of their debt," said Andrew Pentis, a certified student-loan counselor at Student Loan Hero by LendingTree. "So it grows with interest, sometimes multiplying over years, if not decades."</p><h2><strong>Poor education about the dangers of debt</strong></h2><p>Too often, families of first-generation Americans reviewing financial-aid packages from colleges and universities don't realize the loans they see being offered must be repaid with interest.</p><p>Other times, families think of education loans as "good debt." They view it as "the price to pay for investing in your future, sometimes by getting a degree from a prestigious, but more expensive, school in order to climb the social ladder, Pentis said. </p><p>The government also doesn't do enough to explain its federal student-loan options. "A large cohort of borrowers leave school without fully understanding the weight of their debt, or their options for repaying it," Pentis said. "The government needs to take a more direct role in educating students about how to avoid federal student loans, not just offering them without explanation."</p><p>High schools also tend to gloss over the topic, he said.</p><p>"The family that's dead-set on paying six figures to send their child to the prestigious university," he said, "might not have considered that spending two years at a community college before transferring to that better four-year school could cut their overall costs and borrowing significantly."</p><p>Student debt is on the rise because college education is an industry in the United States, experts told Insider.</p><p>"<keyword id="6375224" type="UNKNOWN" weightage="60" keywordseo="higher-education">Higher education</keyword> operates as a free market," said Chris Mullin, strategy director of data and measurement at the Lumina Foundation, an organization committed to expanding higher-education access.</p><p>"As a result," Mullins said, "the cost a student pays can be set at what the market will bear."</p><div type="image" title="college student" height="1414" width="2121" msid="81321813" hostid="261"></div><h2><strong>The cost of <keyword id="109748" type="ORGANIZATION" weightage="60" keywordseo="Tuition">tuition</keyword> depends on a number of factors</strong></h2><p>College tuition is not regulated federally, and there are distinctions between the way private and public universities set them, which directly affects how much money students and their families will pay. Private university tuition costs are decided by the institutions themselves, student debt experts told Insider.</p><p>"Private schools obviously have more leeway when it comes to setting tuition and fees," Pentis said.</p><p>That's one of the reasons private institutions like New York University set much higher "sticker prices" on their tuitions than public colleges do. The sticker price is the tuition cost a student can expect to pay before grants, loans, and other types of financial aid kick in, which means not everyone pays the full or same amount for higher education.</p><p>And because private <keyword id="342983" type="ORGANIZATION" weightage="60" keywordseo="institution">institution</keyword>s have more leverage in setting tuition costs, the decision-making process behind it varies from one institution to another. This can lead to differences between the sticker price and the net price of tuition, with the net price being what a student ultimately pays for their education after financial aid has been applied.</p><p>Donna Desrochers, principal researcher at the education program run out of the American Institutes for Research, says higher-cost private universities may simply set those prices with the intention to subsidize the cost of tuition for students receiving financial aid.</p><p>"It may be that [for] NYU, or any other school, the higher price is taking some of those full-pay dollars from full-pay students, and trying to reallocate to provide aid for other students," Desrochers said.</p><p>Meanwhile, public-university tuition, which is typically more affordable, is set by individual states.</p><p>"Perhaps they have a lower sticker price, and maybe they're not reallocating as much aid to students," Desrochers said.</p><h2><strong>Sticker prices are a type of "complex marketing," according to Desrochers</strong></h2><p>"It's kind of like an airline, right? And people compare it to that, sometimes. You're paying different prices for different seats, depending on when you purchased it. And so, it's quite similar," she said. "They're trying to attract the class that they want."</p><p>Sticker prices also help institutions maintain their costs of operation, Desrochers said. Public colleges benefit from raising sticker prices, especially when states are contributing less money to higher-education budgets.</p><p>"That pays for less of the institution's costs," Desrochers explained. "It actually ends up shifting those costs onto students." Because of the recession brought on by the coronavirus, Desrochers expects to see states investing less in higher education, leading to institutions shifting those costs onto students instead of trying to minimize their spending.</p><p>"We see it every time after a recession," she said.</p><p>A good chunk of students do not pay the full sticker price for college tuition. According to a <a href="https://www.nacubo.org/Research/2020/NACUBO-Tuition-Discounting-Study/Tuition-Discounting-Study-Infographics">study from the National Association of College and University Business Officers</a>, tuition on average was discounted by 46.3% for all undergraduates from 2018 to 2019.</p><p>This means, overall, institutions "give substantial grant aid," said Mullin, the Lumina Foundation strategy director.</p><h2><strong>Student debt-relief measures are still needed</strong></h2><p>Collectively, student-loan borrowers in the US owe more than $1.7 trillion. Trillion with a T. So conversations about how to address that debt will continue.</p><p>They will go a long way in helping borrowers "who don't have much of a chance to end their debt on their own," Pentis said.</p><p>But no relief measure will address the source of the problem: brand-new student loans.</p><p>If students and family members don't recognize the dangers of accumulating large amounts of debt at high interest rates, the pattern of rising student debt will continue, experts warn.</p><p>While tuition costs are not a federal decision, the government has two levers to pull to encourage colleges to alter tuition rates, Mullin said.</p><p>The government can change the amount of money it makes available to a single student or change who is eligible to get financial aid. That way, students will have fewer restrictions like part- or full-time status to receive federal aid. Schools might then give larger aid packages to students, Mullin said.</p><p>Additionally, the government can "provide consumer information" with the goal of disclosing data and supplying comparison points intended to help students make informed decisions about their college education.</p><p>"It can inform the public by effectively placing a warning on institutions, like the US Surgeon General's warning on a pack of cigarettes," Mullin said.</p><p>"This kind of 'warning' can take the shape of a requirement, for example, that institutions make public the workforce outcomes of their programs," he said, effectively showing students what kind of return on investment they can expect after graduating college.</p>

Why student debt will keep rising despite loan-forgiveness programs lawmakers are proposing in Congress

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Getty Images</span></p><p class="caption">American students pay the most for college by far.</p></div><p></p></div></div></p><p>In the US, college is so expensive that many have to go into debt to afford it. </p><p><span>A study by The Brooking Institution found that, of the more than 40 million Americans who have student debt, </span><a href="https://www.brookings.edu/wp-content/uploads/2018/02/es_20180216_looneylargebalances.pdf" data-external="true">14% owe at least $50,000</a><span>.</span></p><p>But that's not the case everywhere. </p><p>A late 2017 study by the Organization for Economic Co-operation and Development (OECD) looking at higher education costs throughout the world found that <a href="https://read.oecd-ilibrary.org/education/education-at-a-glance-2017_eag-2017-en#page222">the US has the highest average tuition costs</a> of the <a href="http://www.oecd.org/about/membersandpartners/list-oecd-member-countries.htm">35 OECD member countries</a>.</p><p>College in the US costs, on average, $8,202 per year at public institutions at the bachelor level.</p><p><span>About a third of the countries in the report, including Denmark and Finland, don't charge any tuition fees at all for public institutions at the bachelor level. In 10 countries, such as Austria, Italy, and the Netherlands, tuition fees are less than $4,000.</span></p><p>Here's how much college costs per year in 28 countries, based on fees for public schools at the bachelor level.</p>

Here's what college costs in 28 countries around the world

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="source"><span><a href="http://www.flickr.com/photos/poptech2006/2967350834/">Pop!Tech/Flickr</a></span></p><p class="caption">Author Malcolm Gladwell.</p></div><p></p></div></div>On Wednesday, University of San Diego Law professor Victor Fleischer <a href="http://mobile.nytimes.com/2015/08/19/opinion/stop-universities-from-hoarding-money.html?referrer=">wrote an op-ed in The New York Times</a> that tore into Yale University for supposedly paying hedge fund managers excessive fees, while spending a fraction of the amount on students.</p><p><a href="http://www.businessinsider.com/malcolm-gladwell-attacks-yale-for-its-480-million-payment-to-hedge-fund-managers-2015-8#comments">Malcolm Gladwell picked up the cause</a> and, in a series of pointed tweets, ridiculed the Ivy League school, implying that money, rather than educating students, was its main concern.</p><p>Accusations that colleges are spending their money "inappropriately" generate such visceral reaction because they tap into the fury surrounding crippling college tuition costs. Student loan debt - <a href="http://www.forbes.com/sites/specialfeatures/2013/08/07/how-the-college-debt-is-crippling-students-parents-and-the-economy/">at $1.2 trillion dollars</a> - now exceeds car loans and credit card debt figures. Between 2001 and 2012, average sticker price for tuition rose 46%, according to a<a href="http://www.newyorkfed.org/research/staff_reports/sr733.pdf"> report by the Federal Reserve Bank of New York</a>, which adjusted its figure for inflation. </p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="caption">David Swensen is the manager of Yale University's endowment fund.</p></div><p></p></div></div>Against the background of skyrocketing debt and tuition, Fleischer researched how universities are spending their endowments. (His op-ed was based on that research.)</p><p>What Fleischer's op-ed neglects to mention is that Yale pays those so-called exorbitant fees to managers because their investments generate huge returns, in the billions of dollars, for the endowment.</p><p>Dan Primack, at Fortune, made this argument on Thursday.</p><p>"Yale's private equity program currently represents 33% of its endowment, and has generated 15.4% annual returns over the past decade (a better mark than the S&amp;P 500 over the same period),"<a href="http://fortune.com/2015/08/20/no-private-equity-is-not-inflating-tuition-at-yale-or-any-other-school/"> he wrote</a>.</p><p>"Were Yale's PE portfolio to make that exact return on its current PE portfolio in its current fiscal year, the return in hard dollars would be over $1.2 billion. Sure, Yale could pay its private equity managers exactly <em>bupkis</em>, and then be $1.2 billion poorer for its populist pose."</p><p>Primack argues that Fleischer is misguided in his attack on hedge fund fees as the solution for decreasing college tuition costs. But that doesn't mean Fleisher's study is based on a false premise. It's true that that we need to examine why students' college costs are so high and how to decrease them, as Fleischer's study suggests.</p><p>Perhaps a better way to ask the question is by looking at the percentage of endowment increases compared to operating costs and student tuition levels.</p><p>Looking at the last five years, <a href="http://finance.yale.edu/financial-reports-0">Yale's endowment has seen tremendous growth</a>, starting at $16.5 billion for the 2009-2010 school year and growing to $23.9 billion in the 2013-2014 school year. The average year over year growth for the endowment was 10%.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Business Insider</span></p></div><p></p></div></div></p><p>Operating expenses also grew during that period an average of 4.43%.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Business Insider</span></p></div><p></p></div></div></p><p>Finally, tuition fees also grew during the period for an average of 4.78%.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Business Insider</span></p></div><p></p></div></div></p><p>This means that student tuition is increasing at a steady clip that it is, on average more than the rate increase of operating expenses, all while Yale's endowment is seeing huge gains. </p><p>We asked Yale why students are absorbing increases in tuition, especially at a rate greater than the operating expenses are increasing.</p><p>"Yale meets the full demonstrated financial aid need of all students," a spokesperson for Yale told Business Insider. "Tuition increases are only paid by those who can afford them. If an undergraduate student is on financial aid (more than half of Yale students are), he or she does not pay a tuition increase unless there has been a change in the family's financial status."</p><p>That's precisely the problem. Increases on tuition for "those who can afford them" is contributing to the dizzying mountains of student loan debt that students around the US have been experiencing.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/mba-worth-money-tuition-cost-benefit-analysis-2015-6">We did the math: Is an MBA worth it?</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="B2ZWY2bTp47bf8XXc0yX1YLIhALiZDkX" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Here's what that NYT op-ed, and Malcolm Gladwell, got wrong in their takedown of Yale and hedge fund fees

<p><div class="KonaFilter image-container display-table lead-image-small"><div><div class="image"></div></div></div></p><ul class="summary-list"><li>Paying college tuition with a <a href="https://www.businessinsider.com/best-rewards-credit-cards">rewards credit card</a> can help you reach financial goals or earn points, but you need to be aware of the potential drawbacks, like high interest rates if you can't utilize a 0% intro APR offer.</li><li>It's less common for private schools to accept credit cards than public colleges, but there are 13 noteworthy private institutions that will let people pay with a card   .</li><li>Credit cards that offer high welcome bonuses, rewards for meeting spending thresholds, or introductory 0% APR periods can be great options for paying tuition. Some such cards include the <a href="https://thepointsguy.com/card-hub/hilton-honors-american-express-surpass-card/?utm_campaign=bi_10092019_lt_tuition-cards&amp;utm_source=referral" rel="nofollow">Hilton Honors American Express Surpass® Card</a>, <a href="https://thepointsguy.com/card-hub/delta-reserve-credit-card-from-american-express/?utm_campaign=bi_10092019_lt_tuition-cards&amp;utm_source=referral" rel="nofollow">Delta Reserve® Credit Card from American Express</a>, and the Discover it® Cash Back.</li><li>Also consider credit cards that offer a strong return on your spending, such as the <a href="https://thepointsguy.com/card-hub/capital-one-venture-rewards-credit-card/?utm_campaign=bi_10092019_lt_tuition-cards&amp;utm_source=referral" rel="nofollow">Capital One® Venture® Rewards Credit Card</a> with 2x miles on every purchase and the <a href="https://thepointsguy.com/card-hub/chase-freedom-unlimited/?utm_campaign=bi_10092019_lt_tuition-cards&amp;utm_source=referral" rel="nofollow">Chase Freedom Unlimited</a> with 1.5% back.</li><li><a href="https://www.businessinsider.com/yourmoney?utm_source=bullet">Read more personal finance coverage.</a></li></ul><p>When paying online for college tuition, you'll see a list of payment method options: financial aid, 529 plan, wire transfer, e-check, debit card, and credit card. </p><p>You may be wondering, "Why would someone pay college tuition with a credit card?" Initially, it seems like a financial taboo. But as is the case with many financial decisions, there are times when putting tuition on a credit card is the right move, and times when it isn't. You decision will depend on a variety of factors, including interest rates, convenience fees, the college in question, and, of course, which card you use.</p><p><em>Keep in mind that we're focusing on the rewards and perks that make these credit cards great options, not things like interest rates and late fees, which can far outweigh the value of any rewards.</em></p><p><em>When you're working to earn credit card rewards, it's important to practice financial discipline, like paying your balances off in full each month and not spending more than you can afford to pay back. Basically, </em><a href="https://www.businessinsider.com/which-is-better-credit-vs-debit-cards-2018-3"><em>treat your credit card like a debit card</em></a><em>.</em></p><p><em><strong>Read more: </strong><a href="https://www.businessinsider.com/best-current-credit-card-signup-bonuses">The best credit card sign-up offers available now</a></em></p><h2>The pros of paying college tuition with a credit card</h2><h3>You could earn big rewards</h3><p>Many people swipe their credit cards to earn rewards, such as travel points or <a href="https://www.businessinsider.com/best-cash-back-credit-cards">cash back</a>. If you pay thousands of dollars of tuition with your card, you have the potential to earn huge rewards. If you earn even just 1 travel point per dollar spent, paying tuition could score you a ton of points. </p><h3>You could earn a sign-up bonus</h3><p>It's common for credit card companies to offer a <a href="https://www.businessinsider.com/best-current-credit-card-signup-bonuses">sign-up bonus</a> to new customers. To qualify for this bonus, you typically have to spend and pay off a certain amount of money with your card in a designated amount of time. For example, the <a href="https://thepointsguy.com/card-hub/capital-one-venture-rewards-credit-card/?utm_campaign=bi_10092019_lt_tuition-cards&amp;utm_source=referral" rel="nofollow">Capital One Venture Rewards card</a> currently awards new members 50,000 miles if they spend $3,000 in the first three months. Putting tuition on the card could help you spend enough money to receive that bonus. </p><p>This strategy is ideal if you already have the liquidity to pay tuition. You could potentially pay tuition with the card, pay off the full amount the next day, and never have to pay one cent of interest. You'll have scored thousands of bonus points or earned hundreds of dollars for spending money you would have spent on tuition anyway.</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/college-expensive-most-students-dont-pay-full-cost">College is more expensive than ever, but "almost no one" is paying sticker price </a></em></p><h3>A big purchase can help you meet an annual spending threshold</h3><p>Certain credit cards reward you for meeting an annual spending threshold. For instance, if you're working toward Delta Medallion elite status an you spend and pay off $30,000 in one calendar year with your <a href="https://thepointsguy.com/card-hub/delta-reserve-credit-card-from-american-express/?utm_campaign=bi_10092019_lt_tuition-cards&amp;utm_source=referral" rel="nofollow">Delta Reserve card</a>, you'll receive 15,000 <a href="https://www.businessinsider.com/delta-medallion-qualification-miles-earn-with-credit-cards">Medallion Qualification Miles (MQMs)</a>, which are an important element of securing elite status. As with sign-up bonuses, this strategy is great if you can pay off the balance before any interest accrues.</p><h3>You might pay 0% APR</h3><p>You may be able to find a credit card that offers a 0% annual percentage rate (APR) for a limited amount of time. If you're trying to decide between taking out a student loan and paying with a credit card, the card could be the right choice, because it's tricky to find a student loan with no interest rate.</p><p>Credit cards only offer 0% APR for a limited amount of time, typically around one year. If you think you can pay off most or all of the loan before the time limit runs out, you could end up saving a lot of money on interest.</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/best-balance-transfer-credit-cards">The best balance-transfer credit cards for paying down debt without interest</a></em></p><h2>The cons of paying college tuition with a credit card</h2><h3>Credit card APR is most likely higher than student loan APR</h3><p>Credit card interest rates are notoriously high. In the second quarter of 2019, the average credit card interest rate was 19.29%.</p><p>For the 2019-2020 school year, federal rates are 4.53% for undergraduate loans, 6.08% for graduate and professional loans, and 7.08% for Direct PLUS loans. Beginning private loan rates vary depending on your financial profile and the lender you go through.</p><p>As you can see, credit card APRs tend to be higher than student loan APRs. However, rates will vary from person to person. If you decide to pay tuition with a credit card rather than take out a student loan, but you can't pay off the card relatively quickly, you could accrue more interest and pay more in the long run.</p><h3>You'll probably pay fees</h3><p>Most colleges that accept credit card payments will charge you a convenience fee. In most cases, you'll pay tuition online through a provider that has a partnership with the school. The provider charges a fee when you pay with a card, and rather than covering the fee out of their own pockets, schools require students to pay.</p><p>Typically, these fees range from about 2.5% to 3% of your total charge. Many schools set a minimum fee, like $3. Before paying tuition with a credit card, you'll want to calculate how much you'll earn in rewards versus how much you'll pay in fees. If you'll earn $750 in cash back but pay $1,425 in convenience fees, you may realize it's not worth using the card.</p><h3>Your credit card spending limit might be too low</h3><p>What's your credit card spending limit? If it's lower than the cost of tuition, you'll have trouble paying with a card. Some colleges do allow families to set up tuition payment plans, so you could pay for a semester's tuition in installments if your limit is low. However, each school's payment plan system is different, so you might have to choose between paying part of the tuition with a card and finding another payment method.</p><h2>The best credit cards for paying tuition</h2><p>When deciding whether paying tuition with a credit card will work for you, look for cards that offer <a href="https://www.businessinsider.com/best-rewards-credit-cards">big rewards</a>, <a href="https://www.businessinsider.com/best-current-credit-card-signup-bonuses">impressive bonuses for signing up</a> and/or for meeting an annual threshold, and even possibly 0% APR for a solid chunk of time. Here are some of the best out there:  </p><ul><li><strong><a href="https://thepointsguy.com/card-hub/hilton-honors-american-express-surpass-card/?utm_campaign=bi_10092019_lt_tuition-cards&amp;utm_source=referral">Hilton Honors American Express Surpass card</a> -</strong> This card offers a huge welcome bonus of 125,000 Hilton Honors points that you can use to book hotels around the world. There are a few competing cards that offer similar bonuses, but the Hilton Honors card only requires you to spend $2,000 in three months. If that's all you want to spend on tuition, you can easily rake in that bonus.   You'll also earn 3 Hilton Honors bonus points per dollar you spend, making a big purchase like tuition a great deal. If you meet the annual threshold of $15,000 in the first calendar year, you'll receive a free weekend in a Hilton hotel. That's incentive to continue using this card to pay tuition even after the first semester.    This card has a $95 annual fee. </li><li><strong><a href="https://thepointsguy.com/card-hub/capital-one-venture-rewards-credit-card/?utm_campaign=bi_10092019_lt_tuition-cards&amp;utm_source=referral" rel="nofollow">Capital One Venture Rewards card</a> -</strong> This is an example of a card that offers big rewards in general. The sign-up bonus of 50,000 miles is already impressive, but you earn 2x miles for everyday purchases, while many competing cards only provide 1x or 1.5x points. You can also earn 10x miles when you book paid hotels via hotels.com/venture, which may come in handy while touring colleges or when a parent wants to visit their college student after they've moved in. There's a $95 annual fee that's waived the first year. <em><a href="https://www.businessinsider.com/capital-one-venture-card-review">Read the Capital One Venture card review.</a></em></li><li><a href="https://thepointsguy.com/card-hub/chase-freedom-unlimited/?utm_campaign=bi_10092019_lt_tuition-cards&amp;utm_source=referral" rel="nofollow"><strong>Chase Freedom Unlimited</strong></a> - This card offers 1.5% back on every purchase, which is decent for a <a href="https://www.businessinsider.com/best-no-fee-credit-card">no-annual-fee card</a>. However, you can boost your rewards earnings if you also have a <a href="https://www.businessinsider.com/best-chase-card">Chase card</a> that earns <a href="https://www.businessinsider.com/how-to-use-chase-ultimate-rewards-points-2018-1">Ultimate Rewards points</a>, such as the <a href="https://thepointsguy.com/card-hub/chase-sapphire-preferred-card/?utm_campaign=bi_10092019_lt_tuition-cards&amp;utm_source=referral" rel="nofollow">Chase Sapphire Preferred Card</a>. In that case, you can <a href="https://www.businessinsider.com/turn-cash-back-into-chase-ultimate-rewards-points-freedom-cards">convert your cash-back rewards from the Freedom Unlimited to Chase points</a> that are redeemable for travel. This boosts their value; The Points Guy values Chase points at 2 cents apiece, so you'd be getting a 3% return on every dollar you spent. <em><a href="https://www.businessinsider.com/chase-freedom-unlimited-review">Read the Chase Freedom Unlimited card review.</a></em></li><li><strong><a href="https://thepointsguy.com/card-hub/delta-reserve-credit-card-from-american-express/?utm_campaign=bi_10092019_lt_tuition-cards&amp;utm_source=referral" rel="nofollow">Delta Reserve credit card from American Express</a></strong> - This is an example of a card with tempting rewards for meeting an annual threshold. You'll earn 15,000 Medallion Qualification Miles for spending $30,000 in a year, then another 15,000 once you reach $60,000. (You'll also earn 15,000 redeemable miles for meeting each of those thresholds, but <a href="https://www.businessinsider.com/delta-credit-cards-updates-new-welcome-bonuses-2019-9">Delta is discontinuing that benefit in 2020</a>.) If you can't spend and pay off $30,000 or $60,000 by paying tuition alone, the cost of tuition will certainly help you reach that goal. Is your card spending limit too low to reach this threshold by paying tuition? Ask if the school offers a payment plan so you can split up your payments.   </li><li><strong>Discover it® Cash Back -</strong> This card provides a 0% APR for an impressive 14 months. After those first 14 months end, the regular APR ranges from 13.74% to 24.74%, which is lower than competing cards offering 0% APR.   The card offers 1% cash back on most purchases, but the convenience fee could overshadow any reward. However, Discover matches all the cash back you earn after the first year. After doing the math, you may realize this works out in your favor.   </li></ul><h2>Colleges that let you pay with a credit card</h2><p>It's becoming more common for public colleges to accept credit card payments. However, it isn't the norm yet for private schools to accept cards. Students attending Ivy League schools or colleges like Notre Dame or Duke won't be able to pay tuition with a credit card. For this reason, it can be helpful to know which private schools accept credit cards, and how much they charge in convenience fees.</p><p>Here are some private colleges that will let you pay with a credit card:</p><h3>Amherst College - Amherst, Massachusetts </h3><ul><li>Annual undergraduate tuition: $57,640</li><li>Credit card convenience fee: 2.99%</li><li>Networks accepted: Visa, MasterCard, Discover, American Express</li></ul><h3>Carnegie Mellon University - Pittsburgh, Pennsylvania</h3><ul><li>Annual undergraduate tuition: $55,816</li><li>Credit card convenience fee: 2.52%</li><li>Networks accepted: Visa, MasterCard, Discover, American Express</li></ul><h3>Johns Hopkins University - Baltimore, Maryland</h3><ul><li>Annual undergraduate tuition: $51,077-$55,350 </li><li>Credit card convenience fee: Not specified</li><li>Networks accepted: Visa, MasterCard, Discover, American Express</li><li>Note: Johns Hopkins only accepts credit cards in certain departments, and the ability to pay with a card may depend on which term you are enrolling for.</li></ul><h3>Middlebury College - Middlebury, Vermont</h3><ul><li>Annual undergraduate tuition: $55,790</li><li>Credit card convenience fee: 2.75%</li><li>Networks accepted: Not specified</li></ul><h3>Northeastern University - Boston, Massachusetts </h3><ul><li>Annual undergraduate tuition: $52,420</li><li>Credit card convenience fee: Not specified</li><li>Networks accepted: Visa, MasterCard, Discover, American Express</li></ul><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/best-american-express-cards">The best American Express cards</a></em></p><h3>Northwestern University - Evanston, Illinois</h3><ul><li>Annual undergraduate tuition: $56,232</li><li>Credit card convenience fee: 2.5%</li><li>Networks accepted: Visa, MasterCard, Discover, American Express</li></ul><h3>Rice University - Houston, Texas</h3><ul><li>Annual undergraduate tuition: $48,330</li><li>Credit card convenience fee: 2.85%</li><li>Networks accepted: Visa, MasterCard, Discover, American Express</li></ul><h3>Swarthmore College - Swarthmore, Pennsylvania</h3><ul><li>Annual undergraduate tuition: $54,256</li><li>Credit card convenience fee: 2.6%</li><li>Networks accepted: Visa, MasterCard, Discover, American Express</li></ul><h3>Vanderbilt University - Nashville, Tennessee</h3><ul><li>Annual undergraduate tuition: $50,800</li><li>Credit card convenience fee: 2.65%</li><li>Networks accepted: Visa, MasterCard, Discover, American Express</li></ul><h3>Washington University - St. Louis, Missouri</h3><ul><li>Annual undergraduate tuition: $54,250</li><li>Credit card convenience fee: 2.75%</li><li>Networks accepted: Visa, MasterCard, Discover, American Express</li></ul><h3>Washington &amp; Lee University - Lexington, Virginia</h3><ul><li>Annual undergraduate tuition: $53,730</li><li>Credit card convenience fee: 2.75%</li><li>Networks accepted: Visa, MasterCard, Discover, American Express</li></ul><h3>Wellesley College - Wellesley, Massachusetts </h3><ul><li>Annual undergraduate tuition: $55,728</li><li>Credit card convenience fee: 2.99%</li><li>Networks accepted: Not specified</li></ul><h3>Williams College - Williamstown, Massachusetts </h3><ul><li>Annual undergraduate tuition: $56,970</li><li>Credit card convenience fee: 2.99%</li><li>Networks accepted: Visa, MasterCard, Discover, American Express</li></ul><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/best-colleges-need-based-financial-aid-ranking-2019-8">The 20 colleges that give the best financial aid, according to students</a></em></p><p>Paying college tuition with a credit card certainly isn't for everyone. But if you use the card strategically, you might be happy with the results.</p><ul class="read-more-links"><li>More <a href="https://www.businessinsider.com/category/credit-cards">credit card</a> coverage</li><li><a href="https://www.businessinsider.com/best-airline-credit-card-comparison-delta-united-american">What's the best airline credit card?</a></li><li><a href="https://www.businessinsider.com/best-cash-back-credit-cards">The best cash-back credit cards</a></li><li><a href="https://www.businessinsider.com/southwest-credit-card-comparison-which-to-get">Southwest credit card review</a></li><li><a href="https://www.businessinsider.com/best-rewards-credit-cards">Best rewards credit cards</a></li></ul><p class="tagline"><p style="font-size:14px;"><em>Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.</em></p><p style="font-size:14px;"><em>Business Insider may receive a commission from The Points Guy Affiliate Network, but our reporting and recommendations are always independent and objective.</em></p><p style="font-size:14px;"><em>Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.</em></p></p>

Some colleges let you pay tuition with a credit card - here's how to determine if it's worth it, and what card to use if it is

<p class="source"><span>jacoblund/iStock/Getty Images Plus</span></p><p class="caption">College tuition is tax deductible on your 2019 tax return.</p><ul class="summary-list"><li>College tuition and fees are <a href="https://www.businessinsider.com/tax-deductions-tax-credits-save-money-taxes">tax deductible</a> on your 2019 tax return.</li><li>The deduction is worth either $4,000 or $2,000, depending on your modified adjusted gross income (MAGI) and <a href="https://www.businessinsider.com/what-is-my-filing-status-for-taxes">filing status</a>. Married couples <a href="https://www.businessinsider.com/should-i-file-taxes-jointly-or-separately-married">filing separately</a> are not eligible.</li><li>You don't have to itemize to claim the tuition and fees deduction.</li><li>The deduction cannot be claimed in conjunction with other education-related <a href="https://www.businessinsider.com/four-major-student-tax-breaks-2013-1">tax credits</a>.</li><li><strong><a href="https://www.businessinsider.com/what-is-best-tax-software">See Business Insider's picks for the best tax software »</a></strong></li></ul><p>Americans can deduct qualified college tuition costs on their 2019 <a href="https://www.businessinsider.com/how-to-file-taxes-tax-return-instructions">tax returns</a>.</p><p>The college tuition and fees deduction was set to expire this year, but an 11th-hour <a href="https://www.journalofaccountancy.com/news/2019/dec/tax-provisions-new-government-spending-bill-201922651.html">spending bill</a> signed by President Donald Trump on December 20 renewed the provision through 2020.</p><p>That means if you covered any of the costs of a degree program in which you, your spouse, or your dependent were - or are currently - enrolled, you could be eligible to reduce your taxable income by up to $4,000. The deduction is taken above-the-line, meaning you don't have to itemize deductions to claim it. </p><p>Your eligibility for claiming the tuition and fees deduction depends, in part, on your modified adjusted gross income (MAGI) and filing status.</p><p>Here's how much the deduction is worth:</p><ul><li><strong>$4,000</strong>, if your MAGI was less than $65,000 as a single filer or $130,000 as married filing jointly</li><li><strong>$2,000</strong>, if your MAGI was more than $65,000 but less than $80,000 as a single filer, or more than $130,000 but less than $160,000 as married filing jointly</li><li><strong>$0</strong>, if your MAGI was above $80,000 as a single filer or $160,000 as married filing jointly</li></ul><p><a href="https://www.businessinsider.com/should-i-file-taxes-jointly-or-separately-married">Married couples filing separately</a> are not eligible for the tuition and fees deduction.</p><p>Expenses covered under the deduction include anything related to coursework, including tuition, books, supplies, and equipment, that must be paid to the school as a condition of enrollment. Costs related to room and board, insurance, student health fees, transportation, or other personal living expenses are not eligible for the deduction.</p><p>If you maintain a <a href="https://www.businessinsider.com/how-to-save-for-college-529-plan">529 college savings plan</a> and took distributions to pay for college expenses in 2019, you may still be able to claim the tuition and fees deduction, as long as the expenses you're deducting were not paid for using those funds. Expenses that were paid for using a scholarship, grant, or employer assistance cannot be deducted.</p><p>You cannot claim the education-related <a href="https://www.businessinsider.com/what-is-a-tax-credit-definition-explainer">tax credits</a>, <a href="https://www.irs.gov/forms-pubs/about-form-8863https://www.irs.gov/credits-deductions/individuals/aotc">The American Opportunity Tax Credit</a> and <a href="https://www.irs.gov/credits-deductions/individuals/llc">The Lifetime Learning Tax Credit</a>, in conjunction with the tuition and fees deduction.</p><p>You'll find more information about the qualified education expenses you paid for the year on <a href="https://www.irs.gov/forms-pubs/about-form-1098-t">Form 1098-T</a>, which colleges and universities typically send to students by January 31 following the tax year.</p><ul class="read-more-links"><li>More <a href="https://www.businessinsider.com/category/tax-day-2020">tax day</a> coverage:</li><li><a href="https://www.businessinsider.com/when-are-taxes-due-tax-filing-deadline-2019-1">When are taxes due?</a></li><li><a href="https://www.businessinsider.com/how-to-file-taxes-tax-return-instructions">How to file taxes for 2019</a></li><li><a href="https://www.businessinsider.com/what-is-a-tax-credit-definition-explainer">What is a tax credit?</a></li><li><a href="https://www.businessinsider.com/hr-block-vs-turbo-tax-2018-1">H&amp;R Block vs. TurboTax</a></li></ul><p style="font-size:14px;"><em>Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.<em></em></em></p>            <h3>NOW WATCH: <a href="https://www.businessinsider.com/how-far-sneeze-cough-germs-can-travel-2018-10">This animation shows how far your sneeze can actually travel</a></h3>

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