Cost Benefit AnalysisOf Benjamin Lachelt’s Collegiate Career

Colorado CollegeColorado College is a private, in state university

located in Colorado Springs. The college has a block plan class schedule, which consists of one class for an extended period of time. In this cost- benefit analysis, it will be revealed if it is worth it to go to this college or not, or any college for that matter.

Costs versus BenefitsCosts (Monetary)Tuition=198599Room and Board=40000Food+Accessories=3600(25X4x9x4)Recreational Equipment=1160(4 ski tunes, new pair of skis, new boots)Book=4976(1244(average book price) x4)Party Things=96(2 six packs x 3 parties x 4)Ski passes=1716(429x4)Transportation=8320(40 per week) x 52 weeks x 4)Total=258467

Costs (Non Monetary)Stress=7200(50(per week)x4x9x4)Not being with family=4320(30(per week)x4x9x4))Initiations=150(3 initiation tasks into a fraternity x 50)Having to work hard=7200(50(per week)x4x9x4)Being scared=930(30(per day)x31(first month of college))Time=10220(.5(cost per hour)x20440(hours awake in college))Having to go to school again=112000(2000x56(number of total classes))

Total=142020

All costs=400487

Benefits (Monetary)More money=258000Lower Insurance Rates=1800050x12(months)x30(years working)Money to leisurely spend=343999.991486000(per year)x30(years working)x.13Tax benefits=300001000x30(years of working)Less Medical Expenses=90001500x6(injuries)Perks=300100x3(amount of alumni parties)Retirement=30000010000x30(years)Total=959299

Benefits (Non Monetary)Freedom=60001000 x how much I love America on a scale of 1-10Job Satisfaction=900000100000 x how much I want to have a satisfying job 1-10Experience of college=70001000 x how fun I think college will be on a scale of 1-10New People=100001000x10(people that I will become close to in college)+100More Job Opportunities=300100x30(jobs that I won’t do)Study cool things=150001000 x how many classes I will have that are interestingLearn about information=5600100xamount of classesTotal=943900

All benefits=1903199

=?

IS COLLEGE WORTH IT?-ReflectionEven though the price of college is ridiculously expensive, it is very

important to me to be able to study in depth what I am truly interested in and have a wider range of jobs available to me that would probably give me more job satisfaction. Obviously, the benefits of college definitely outweigh the costs. I will most definitely make more money in college and learn things that my mind craves. College is potentially a worthwhile investment.

Benefits=$1903199 Costs=$400487Benefits-Costs=$1502712

Over a time of about 30 years after college, the benefits will outweigh the costs by $1502712. Also, my parents have a fair amount of money saved up for my college career, so that will help in my college expenses as well.

Other Reflections• Considering that Colorado College is a very expensive institution for higher learning, my

costs would most likely be lower if I went to another lower quality four year university (compared to Colorado College). Then the difference between benefits and costs would be about as separated as the Red Sea (post Moses). The lower costs of a less expensive university would most likely make the college experience worthwhile.

• My total tuition could increase when I’m in college by:1. Going to college for longer amount of time.2. If I have to leave college for an extended period of time and come back.3. Get suspended from college and have to go to another college.• Monthly Payment=1725.25 Monthly income=7228 Total money needed to pay

back=79142.8 If I have an extended fixed repayment plan of 25 years of $1725.25 a month, that

would be 24% of my monthly income for 25 years.Conclusion

• Colorado College seems as if it is too expensive of a college for me unless I get a scholarship. When I say that the debt of this college is too much, I mean any monthly repayment loan above 20% of my monthly income.

• The true and pure price of college, without any of the confusing repayment plan stuff, is whatever a college student is willing to sacrifice to get a college degree. The amount and variation of this price will differ from person to person. For me, the sacrifices I am willing to pay are listed in the costs section on slide two.

• This project has definitely made me think about the consequences of going to college. It hasn’t scared me out of going to college, it just made me a better informed person about the tasks ahead of me. I still want to go to college, and I will try to make smart financial decisions while I am there.

The End

According to my cost-benefit analysis, I should go to college!