Module 15

Paying For College

In this module, we examine the hefty price tag associated with higher education and explore various strategies to manage and pay for college education.

We dissect different types of scholarships, grants, student loans, and work-study programs. We also explore FAFSA and how to apply for financial aid, so that by the end of this module, students have a clear roadmap for investing in future education.

Module At A Glance

Grade Levels:

9th -12th

Est. Length:

2-3 Hours (12 slides)

Activities:

1 Activities

Articles:

3 Articles

Languages:

English & Spanish

Curriculum Fit:

Math, Business, Economics, CTE, Social Studies

Standards Alignment:

CEE National Standards, Jump$tart National Standards & Relevant State Standards

Guiding Questions

What options are there out there to help pay for college or university?
How can you leverage grants and scholarships to help reduce the cost of college?
What is the opportunity cost of going to college and what other options are there?
What are factors you are looking for in employment? Do they require a college degree or does it make it easier?
In what ways are you able to get assistance from the government or lending agencies to help with college?

Enduring Understandings

Determining the opportunity cost of college and various forms of education and how you can apply opportunity cost to many things in life.
Job satisfaction is important and determining the income and non-income factors that create satisfaction for you.
There are multiple helpful resources that can assist in paying for college or provide loans that can help cover the cost.
The key terms for any student loan document and terms to help understand other loan documents.

Module Vocab & Key Topics

FAFSA (Free Application for Federal Student Aid): This is a form managed by the U.S. Department of Education that students must fill out to be eligible for federal financial aid for college. It serves as the gateway for various forms of financial support including grants, loans, and work-study programs.
Opportunity Cost: A fundamental economic concept, opportunity cost refers to the loss of potential benefits when one alternative is chosen over another. This can relate to both monetary and non-monetary factors, such as time and satisfaction.
Scholarships: These are financial awards provided to students based on various criteria, often academic merit or special talent, and do not have to be repaid.
Grants: Unlike loans, grants are sums of money that are given to students for their education and generally do not have to be repaid. They can be from governmental or private organizations.
Work-Study Programs: These are federally or institutionally funded programs that allow students to work part-time jobs to help pay for college expenses.
Student Loans: A sum of money borrowed to pay for higher education, which will need to be paid back with interest over a specified period.
Fixed Interest Rate: This refers to an interest rate on a loan that remains the same throughout the entire loan period, commonly associated with federal student loans.
Variable Interest Rate: This is an interest rate that can fluctuate over the duration of a loan based on market conditions, often seen in private student loans.
Repayment Plans: These are predetermined arrangements between the borrower and the lender detailing how the borrower will repay the loan, including the repayment period and monthly payment amount.
Gig Economy: This term describes a labor market where short-term, freelance, or contractual work is prevalent, allowing for flexible schedules but often lacking traditional employee benefits.
Non-Income Factors: These refer to elements other than salary that contribute to job satisfaction, such as work culture, job security, and work-life balance.
The Wage Gap: The term is used to describe the pay discrepancies that exist between employees doing the same job, often affecting certain groups disproportionately based on gender, race, or other factors.

Worked Examples

College Costs In Action

Four numbers that decide what a degree really costs and returns.

Figures current · August 2026

Loan interest

What You Borrow vs What You Repay

total = principal + interestover the term

Federal Direct undergraduate loans first disbursed in 2026–27 carry a fixed 6.52% rate. Borrow $30,000 and repay it on the 10-year Standard plan, and the $341 monthly payment runs for 120 months — adding up to far more than the $30,000 that first landed in the account.

$40,914repaid on a $30,000 loan$10,914 of it is interest

The $30,000 sticker is barely three-quarters of the $40,914 finally repaid — the other $10,914 is interest the 6.52% rate adds across 120 payments.

529 growth

Starting at Birth vs Age 10

FV = P(1 + r)ⁿeach deposit compounds

Set aside $200 a month in a 529 college fund earning about 6% a year. Starting at a child's birth, 216 deposits compound to $77,471 by age 18. Wait until age 10 and the same $200 a month has only 96 deposits and eight years to grow, reaching $24,566.

$77,471by age 18, saving from birth$24,566 if started at age 10

Starting from birth contributes 2.25 times as much money but ends with 3.15 times the balance, because $34,271 of the early fund is growth no deposit ever supplied.

Degree ROI

The Earnings Premium

premium = degree pay − high-school paythe earnings gap

In 2024, U.S. workers with a bachelor's degree had median earnings of $1,543 a week and high-school graduates $930, per BLS. Annualized at 52 weeks, that is $80,236 against $48,360 — and the degree's payoff is the gap between those two lines, set against what four years cost.

$31,876more a year with a bachelor'sabout $1.28M over a career

The bachelor's premium is $31,876 a year, which adds up to about $1.28 million over a 40-year career before a dollar of tuition is subtracted.

Payment vs salary

The 10% Guardrail

payment ≤ 10% × incomethe 10% rule

A common guardrail keeps total student-loan payments under 10% of gross monthly income. A $60,000 salary is $5,000 a month, so the ceiling is $500. Change the salary and the ceiling moves with it: $45,000 allows $375 a month and $75,000 allows $625.

$500monthly ceiling at a $60,000 salary$45k → $375 · $75k → $625

The $341 payment on the $30,000 loan stays under the 10% ceiling at every salary shown — under even the $375 that a $45,000 starting income allows.

Sources: federal Direct undergraduate loan rate 6.52% fixed for loans first disbursed July 1, 2026–June 30, 2027, U.S. Department of Education / Federal Student Aid announcement GENERAL-26-33 (checked 2026-08-24); median weekly earnings by educational attainment, 2024, BLS Education pays / Current Population Survey — bachelor's $1,543, high school $930 (checked 2026-08-24). The $30,000 loan on the 10-year Standard plan, the $200/month 529 at a 6% return, annualized earnings (weekly × 52), and the three salaries are stated illustrative inputs; all payments, balances, and totals are derived from them. Reviewed August 2026.

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Financial Equations

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