Throughout the academic year, college students diligently study, write essays, and sit exams. It used to be a common belief that they should also work rigorously over the summer to amass funds for their education. Three decades ago, summer jobs provided students with sufficient income to make a significant dent in the next year’s tuition. But is that realistic today?
The stagnant minimum wage juxtaposed with soaring college fees leads us to question whether it is logical for a student to pause college over the summer. Could it indeed be more beneficial to accelerate one’s education, thereby completing a degree in a shorter time frame?
EXAMINING THE STATISTICS
Consider a hypothetical student, Jessica, enrolled in a state college where each semester costs $6,474, summing up to $12,948 per academic year. As per FinAid, an average annual tuition hike of 8% is observed. Consequently, Jessica’s fees over her four years would amount to $58,343, considering no other variables.
Summer classes would cost Jessica $3,200 for 6 to 9 credits, potentially enabling her to accumulate an extra year’s credits over three summers. The cost for these three summers would be $10,388. Completing her degree within three years allows her to forego her fourth year and save $5,922 in fees.
If Jessica opts for summer employment, she is likely to earn minimum wage ($7.25), working full-time for 12 weeks and yielding a total of $3,480 per summer. After tax and other deductions, she would be left with $2,784 for one summer, totaling $8,352 for three summers spent working.
On the surface, summer work seems more lucrative as she earns $8,352 over three summers as opposed to saving $5,922 if she took summer classes. Thus, Jessica would be financially better off by $2,430.
BEYOND THE NUMBERS: THE FINANCIAL BENEFITS OF SUMMER COURSES
One crucial factor overlooked in this analysis is the time advantage. By attending summer courses, Jessica completes college in three years rather than four, hitting the labor market a year earlier. This results in her securing a full-time position, assuming a base salary of $35,000 a year, earlier than her peers. Even after tax, Jessica stands to gain significantly by graduating in three years.
Commencing work a year early allows Jessica to start loan repayments sooner, contribute to her retirement fund, and possibly earn raises and bonuses, considerably improving her financial situation compared to a conventional four-year degree.
Therefore, the traditional advice to work over the summer to save for college fees might not hold true anymore due to financial inflation. A strategic approach of intensive study to expedite one’s through college could prove to be financially wise.
The choice is yours: would you prefer summer employment or accelerating your education?
