The Opportunity Cost of College
What is your opportunity cost of attending college full time this year? What was the best alternative you gave up? If you held a full-time job, you have some idea of the income you gave up to attend college. Suppose you expected to earn $20,000 a year, after taxes, from a full-time job. As a full-time college student, you plan to work part time during the academic year and full time during the summer, earning a total of $10,000 after taxes. Thus, by attending college this year, you gave up after-tax earnings of $10,000 (= $20,000 – $10,000).
There is also the direct cost of college itself. Suppose you are paying $6,000 this year for in-state tuition, fees... , and books at a public...