Issues Under Fire: If You Can't Afford America, Consider Your Options

Issues Under Fire: If You Can't Afford America, Consider Your Options 

Now that the die has been cast as to who'll be managing American lives going forward, it's time for those interested in salvaging their personal futures to start exploring alternatives to what'll be offered by either a Democrat or Republican administration. Considering we're talking about the future today, we'll start with America's youth. In less than two months, high schoolers will be graduating all over America and many, along with their parents, are wondering how the hell they're going to pay for college. What's a family to do? 

Since Bernie Sanders' proposals for free college tuition will never see the light of day now, the obvious path for most will be loans, loans and more loans. And even though the Obama administration has stepped up efforts to reform student loan servicing, those reforms are designed to stave off rising defaults, not to provide any form of debt relief. If you owe, you're gonna pay, no matter how long it takes. That's just the deal. 

Currently, 43 million Americans are carrying more than $1.3 trillion in student debt, with 7.9 million failing to make a payment on $121 billion in the last nine months. So, when Education Secretary John B. King stated "We know costs are rising too fast and too many Americans are struggling to pay back their loans", we expected more than, "The Obama administration is working to ensure borrowers get the high quality customer service, strong consumer protections and support they deserve to successfully repay their loans. 

If we know for a fact that these loans are going to delay our youth's ability to buy a first car, a first home, get married and start their families, then why would we let them walk into that trap with their eyes wide open. If you can't afford an American college or university without signing your life away to a bank and most of us know we can't, why not consider getting your kids out of America and have them study abroad. Ultimately, the kid will have a richer, global, world view developing experience than they'll ever get in the States and at a fraction of the cost. And if carefully planned, you won't need a loan. 

So, where and how much, you should be asking? Since we've just returned from Madrid, Spain, we'll start there. Believe it or not, as inexpensive as university costs in the UK and France compared to the United States, many Brits and French send their kids to Spain for college. Spain has 76 quality universities, of which two thirds are state-funded, while the rest are private and tuition is crazy cheap, even for foreigners. You pay what they pay.  

Think about that. In the United States, a kid from New York will pay significantly higher tuition rates if he/she decided to attend an out of state school in neighboring Connecticut. If that New York kid hasn't established residency there, he/she will pay thousands more than a Connecticut resident. Yet, that same New York kid can travel across the Atlantic and obtain a comparable degree for less than a third the cost per year in his/her own state. That's just the way it works here. 

Here are some figures obtained from collegedata.com that should help you see the light. In the U.S., colleges often report a combined tuition and fees figure. According to the College Board, the average cost of tuition and fees for the 2015–2016 school year was $32,405 at private colleges, $9,410 for state residents at public colleges, and $23,893 for out-of-state residents attending public universities. 

Fees and tuition at Spain's public universities are set by education bodies regionally so they'll vary around the country, but roughly speaking, you're looking at 400-1000 pounds per year to attend a public university. While a private institution can cost from $5000-18,000 USD, compared to the United States cited above, Spain is where you want to get your four year degree and even a masters if you're so inclined. 

If your kid needs an apartment, the average monthly rental for a one bedroom will cost between 259-346 pounds. If your kid can share a space with another, the cost is even cheaper. If your kid needs to eat, and they all do, a decent heathy meal can be found for less than $5.00 USD quite easily. Transportation will cost you about $1.28 per Metro/Bus ride and even cheaper if you buy a 10 ride ticket.  

If your kid needs to pick up a part-time job to pay for books, other incidentals and expenses, you'll be glad to know, Spain has zero restrictions against foreign students working to support themselves. But, you should know that not much english is spoken in Spain, so if you need a job to pay for those extras, not knowing the language is going to slow your roll considerably. 

Bottom line: All things considered, when it comes to the overall cost of living, as well as safety and security, if you're a student, tourist or aspiring expat, you'll be hard pressed to find a better option than Spain. From beer to bread to a movie ticket, you'll be so amazed at how affordable Spain is, you might consider this space a retirement option for yourself. No really, it's very possible if you're willing to use your imagination and consider all of your options. More about this tomorrow. Podcast below!