Figures determined by GOBanking Rates [1] surveyed the link between college costs and the amount needed to live securely in each state without taking out loans.
The results were determined by combining several figures including the price of in-state tuition at public four-year institutions, the cost of necessities for a year including a mortgage, utilities, groceries, transportation and healthcare, and what residents would spend on splurges and savings.
Hawaii topped the list of 50 states and requires the highest annual income, $126,454, to pay for in-state college costs and live securely. While the average in-state tuition and fees is not close to the most expensive in the nation at $10,670, the cost of living necessities is $57,892, higher than any other state. With a median household income of only $63,514, loans might be necessary to live comfortably and afford college tuition.
California, Massachusetts, Colorado and Connecticut complete the top five most expensive incomes needed to meet the standards of living comfortably and affording college tuition at the same time. The data reveals this isn’t due to higher tuition rates, but the higher prices to cover the states’ expensive costs of living.
Living in Indiana is the most affordable state to live comfortably and pay for a child’s college education on the list. This is due to the cost of living being one of the lowest in the country. With annual necessities at $26,446 and college tuition at $9,200, living comfortably and affording college tuition in Indiana will need a household income of $62,091.
The most affordable states following Indiana are Arkansas, Ohio, Missouri and Kentucky. What the ‘need to make the least’ to afford secure living and college tuition top five have in common is the lowest costs of living.
The differences in everyday expenses between states are significant. Homebuyers must think about providing for their child’s future education before considering which state to call home. According to these latest figures, avoiding loans and a potential college debt is possible, if a homebuyer chooses a more affordable cost of living.