The cost of attending college in the U.S. has been an issue for many students, parents, and their financial advisors, and a new ranking shows that students in other nations have it a lot easier in terms of costs and student loans.
In the U.S., the average cost of college varies depending on school choice, in-state or out-of-state tuition, plus additional fees and supplies for the school year. Despite scholarships and grants, student loans are leaving graduates with substantial debt.
According to the Wall Street Journal, about 5 million Americans are in default with their student loans.
The website Student Loan Hero compiled a list of education costs in major nations throughout the world, and found a wide diversity in cost structure, ranging from no costs at all, to annual costs in the five digits. There was also a wide variance in student loan repayment policies. One nation in particular has a higher average tuition than the U.S., but a far more lenient loan repayment program for students.
The Student Loan Hero study found that these countries, in ascending order, rank from lowest to highest for tuition costs:
11. Germany
Annual tuition: $0
Student population: 2.98 million
Germany offers free higher education for both German and international students. The average annual tuition at a public college in Germany is $0, however, some colleges charge a semester fee of $300 or less. The Institute of International Education estimates the number of foreign students studying in Germany for the 2017 school year was 251,542.
10. France
Annual tuition: $217
Student population: 2.39 million
Campus France reports that public universities cost $217, but private universities will likely charge more. However, health insurance is covered for EU students, and non-EU students can get coverage for an annual fee of approximately $250.
9. Switzerland
Annual tuition: $1,168
Student population: 294,450
The cost of living in Geneva is 32 percent higher than in New York City according to Numbeo, so students work part-time jobs to cover the cost of living and attending college in Switzerland. The majority of the colleges are public and most offer programs in German, French, Italian and English.
8. Netherlands
Annual tuition: $2,420
Student population: 842,601
In 2015, legislation replaced student grants with loans, so students in the Netherlands are also now facing large loan debts. A Dutch student organization, the ISO, reported that student loan debt grows by 67 cents per second in the country. The country does have a repayment program that assist students after graduation.
7. China
Annual tuition: $3,300 – $9,900
Student population: 43.37 million
In China, the most prestigious universities are public. According to IIE, about 11,668 Americans studied in China during the 2015-16 school year. High school students must pass a 3-day intensive National Higher Education exam, known as the Gaokao, before being accepted into a university.
6. South Korea
Annual tuition: $4,578 (public)
Student population: 50.59 million
Tuition costs are $8,205 at private universities in South Korea. While higher education is important in the country, families are hit with financial burdens that economist report could be problematic in the future. KOSAF Financial aid is need based or merit based and has a fixed interest of 2.70 percent.
5. Australia
Annual tuition: $4,763
Student population: 2.87 million
Private colleges fees down under will average $ $8,827. The New York Times reported students in Australia graduate with about $22,000 in student loans. Graduates enter an automatic repayment plan and don’t pay anything until they start earning approximately $40,000.
4. Canada
Annual tuition: $4,939
Student population: 35.95 million
In Canada, students graduate college with an average debt of $21,042 (U.S. dollars). Canada, like Australia and the U.K., has an income-based repayment system for college graduates. Students only start to repay their loan when they start earning about $25,000 (Canadian dollars) a year. However, this program is not offered to international students.
3. Japan
Annual tuition: $5,228
Student population: 127.98 million
Students who attend a private university will pay about $8,428 for their education. The country’s student loan organization (JASSO) has reported many defaults because of the costly tuition rates. Japan was the 10th-most popular destination in the world for study abroad, according to the IIE, with 7,415 students studying for the 2015-2016 school year.
2. United States
Annual tuition: $8,202
Student population: 19.53 million
The top three U.S. schools are MIT, Stanford, and Harvard according to QS World University Rankings. Bankrate reports that 44 million Americans have a side job on top of full-time work. The same number are carrying student loans totaling $1.48 trillion.
1. United Kingdom
Annual tuition: $12,414
Student population: 2.35 million
Students are graduating with an average of $43,298 in debt in the U.K. according to the Student Loans Company. Graduates enter into an income-based repayment plan after graduation, making the payments quite low. However, it can take a long time to pay off the debt. After 30 years, if the loan is not paid off the government will forgive the remainder of the loan.
The full report can be viewed here.