A new study from GoBankingRates says Maryland ranks 8th highest in salary needed to comfortably send a student to a state college.
If you think affording college in Maryland is difficult, you're absolutely right. We rank in the top eight of states demanding the highest annual income in order to be able to pay for a student's college education at a public institution and still live comfortably within that state.
To put it simply, Maryland residents need to earn $87,000 per year in order to afford $9,370 in average tuition, $38,815 in necessities, $23,289 in splurges, and $15,526 in savings. These numbers are based on the 50-30-20 budgeting rule (50 percent of income for necessities, 30 percent for extras, and 20 percent for savings). Maryland's higher cost of living is factored in, as well as the average cost of tuition and fees at four-year state colleges, per the College Board.[caption id="attachment_17168" align="aligncenter" width="650"] Image courtesy of GoBankingRates.com[/caption]
These numbers would, of course, not factor in the possibility that a family might be sending multiple children to college, or the possibility that students might choose a private college or more expensive school out of state. This study is also assuming that the student would be relying solely on their parents to foot the bill for their education, which is unlikely since a Sallie Mae study in 2016 found that only 29 percent of schooling expenses were paid for by parents, with 34 percent covered by scholarships and grants and another 25 percent covered by student loans or student income and savings.
According to the report by GoBankingRates,
Maryland has one of the highest median household income in the U.S. — $73,594. Still, it’s $13,406 less than the annual income needed to pay for college as well as household expenses. That’s because the average cost of necessities, combined with splurges and savings, is high."
States that landed in the top five included Hawaii (requiring $126,454 per year), California ($106,770), Massachusetts ($96,574), Colorado ($91,700), and Connecticut ($91,140). States requiring the least annual income for education affordability included Indiana at the lowest ($62,091), followed by Arkansas, Ohio, Missouri, and Kentucky.[caption id="attachment_17166" align="aligncenter" width="454"] Image courtesy of GoBankingRates.com[/caption] So what do you think? Are you worried about paying for your kids' college? Would you consider moving to a more affordable state? Let's start a conversation in the comments!