College is expensive. The cost of college has been rising faster than the average U.S. income for almost two decades. At the same time, the college admissions process is becoming increasingly competitive – getting into high quality state schools is nowhere near a given. At the University of Illinois, a 3.75 GPA and a 30 on the ACT does not mean you’ll be admitted, for example. Furthermore, due to the recent recession, once college is over, getting a job is more difficult than it was a decade ago. Yet, study after study still shows that a college education increases your earning power by tens of thousands of dollars every year, so even though a college education is more difficult to obtain and more expensive than ever, it’s still a great investment – in most circumstances.
With all this in mind, you might think the private tutoring market, with its relatively high cost, would be struggling – it makes high school and/or college cost even more. But, the market for private tutoring is not struggling. In fact, it has been and is expected to continue to grow at more than double the rate of GDP through 2017. It’s growing very fast.
Why is this?
It’s because spending on education, including private tutoring, is really an investment – not a cost. For those of you with general business or accounting experience, you’ll realize the incredibly important difference between the two concepts. A cost is incurred today to produce something – perhaps a product, or a service – that you use today. An investment, on the other hand, costs money today, but produces a benefit far into the future.
And, the long run return on investments in education is usually very positive. So, I suggest that private tutoring can actually decrease the overall cost of education. Three Ways Private Tutoring Can Reduce the Cost of Education, we list three scenarios that illustrate how this can be the case:
Scenario #1 – A low performing high school or college student finds a long term private tutor
Scenario #2 – The above average high school student invests in an ACT tutor
Scenario #3 – The proactive high school student loads his schedule with 5 AP classes
Of course, while this is all true in the broad sense, the real world can be complicated. If you attend a mediocre school, choose a major that doesn't fit your passion, and don’t get involved in activities that build or demonstrate your leadership skills and/or creativity, you probably won’t land a high paying job. In this case, the investment you made in your education may not pay off as expected. The key is to understand your end goal and objectives, make intelligent choices about the education you pursue, and do what you can to increase your return on that investment in education while you’re in college (i.e., get As, not Cs.).
In fact, MyGuru has developed two partnerships with organizations that help you navigate the college admissions process and highlight the choices you could make to find the right college for you at the lowest price possible.
Collegian Financial is a college admissions adviser with a personalized approach that includes hands-on support for parents and students from freshman year in high school, through college and career. They consider academic, social, and financial pieces as a whole to avoid wasting time and money.
The College Solution is an interesting and extremely helpful blog with a clear focus on creating tons of content that helps high school students and parents identify the right schools for their individual needs while reducing the cost of attending those schools.
Click to learn more about how MyGuru helps you maximize your return on your investment in education through private ACT tutoring.