What You Need To Make In Every State To Send Your Kid To College

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GOBankingRates

Jun 06, 2017, 07:30 ET

LOS ANGELES, June 6, 2017 /PRNewswire/ -- With the cost of tuition on the rise, more people are taking out student loans to pay for their college. According to the Federal Reserve Bank of New York, Americans owe $1.34 trillion in student loan debt. But there is another way to finance higher education and that is to pay for it outright.

Personal finance news and features website GOBankingRates recently conducted a study to uncover how much money parents in each state would need to make annually to live comfortably and pay for their child's tuition at a four-year institution.

A recent GOBankingRates study looks at how much you need to make in order to live comfortably and pay for your child's higher education in each state.
A recent GOBankingRates study looks at how much you need to make in order to live comfortably and pay for your child's higher education in each state.

Researchers used College Board data to uncover the average price of tuition and fees at public four-year institutions, and then factored in the cost of living in each state by identifying the dollar amounts required to cover necessities like a mortgage, groceries, utilities and more. Additionally, researchers calculated what parents would spend on splurges and savings using the 50-30-20 budgeting role, in which 50 percent of income covers necessities, 30 percent covers discretionary items and 20 percent is reserved for savings.

The 10 states where parents must make the most and least money annually to live comfortably and pay for their child's in-state tuition are listed below. You can view the full methodology and study results here.

States Where Parents Must Make the Most Money to Live Comfortably and Pay for College

  1. Hawaii: $126,454.40
  2. California: $106,770.82 
  3. Massachusetts: $96,573.07 
  4. Colorado: $91,700.33
  5. Connecticut: $91,140.89

States Where Parents Must Make the Least Money to Live Comfortably and Pay for College

  1. Indiana: $62,091.05
  2. Arkansas: $62,596.15
  3. Ohio: $62,931.10
  4. Missouri: $63,618.01
  5. Kentucky: $64,110.64

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SOURCE GOBankingRates