Studying in the US: A Golden Key or a Mountain of Debt?

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These days, we hear a lot about people sending their children to study abroad in the US. But when you calculate the actual cost, you can't help but be shocked. 200 million won per year for 4 years... It's dizzying to think about. Let's take a look at whether this huge investment is really worth it, or whether there are smarter choices we're missing.
Let's look at it based on cold numbers and reality, rather than emotional judgment.

index

1. The Price Tag of the American Dream

Many parents plan to send their children to study in the United States for a bright future, but are often surprised by the costs, which are much higher than expected.

The basic cost is about 80,000 to 100,000 dollars per year, or about 120 to 150 million won. If you add up not only the tuition but also the living expenses, textbooks, insurance, visa costs, and airfare, the total for four years comes to 500 to 700 million won.

This amount can have a significant impact on your family’s financial planning, especially when unexpected events such as currency fluctuations or rising living expenses can add to the burden.

Studying abroad in the United States offers valuable experiences and opportunities, but it requires careful planning and preparation, as one choice can have a significant impact on your entire family's finances.

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2. The reality of rising tuition costs

2-1. The phenomenon of ‘price collusion’ among universities

Tuition increases at American universities are like It's like they colludeddo.
When Harvard raises tuition, Yale and Princeton follow suit, and in an instant, this spreads to universities across the country.
Over the past 20 years, the cost of college tuition in the United States has 3 times the rate of inflationhas soared.
Tuition fee increase rate in 2024 compared to 1990: approximately 1,200% (compared to inflation rate of 400%)
There are structural problems behind these skyrocketing tuition fees.
As federal funding for public universities is drastically cut, universities are Transformation from educational institution to businessI did it.
Universities now prioritize profitability over quality of education, and they view international students in particular as ‘high-value customers.’
In fact, many American universities operate separate admissions offices in Korea to attract international students.
Their goal is simple: Attracting more international students to generate more revenueno see.

2-2. The hidden danger of exchange rates

The most unpredictable variable when studying abroad in the United States is Exchange rateno see.
When you start studying abroad, it may be 1,200 won per dollar, but by the time you graduate, it may be 1,400 won per dollar.
This is not a simple change in numbers.
⚡Total additional cost over 4 years when the exchange rate increases by 200 won: approximately 200 million won (based on 100,000 dollars per year)
In fact, in many households Experiencing budget shortages in the second year of studying abroaddo.
In most cases, you will end up spending more than 150% of your initially planned budget.
At this time, parents are faced with the situation of having no choice but to take out a loan using their house as collateral, cancel their savings, or even borrow money from relatives.
The bigger problem is It's hard to give up after investing two years already.That is the point.
It's like a steep uphill climb that suddenly appears in the middle of a marathon.
We cannot give up the investments we have made so far, and the financial burden is too great to continue.
💸Average Korean Parents' 'Miscalculation': 40-60% Additional Spending Over Initial Budget
These 'miscalculations' are not simple mistakes.
This is the result of a combination of exchange rate fluctuations, inflation, and unexpected additional costs.
In the end, in many homes A situation close to family bankruptcyYou will experience it.

3. The harsh reality of studying abroad in the US in numbers

3-1. Analysis of university costs by tier

The shocking scale becomes even clearer when you compare the cost of American college to the cost of real estate in Korea.

🏆SKY-level private universities (MIT, Harvard, Yale, Stanford, etc.)

🎓 Compare Tuition Costs at Top Private Universities in the US 2025

University name Tuition Dormitory + Meals (Room & Board) Other expenses (Fees, etc.) Total Annual Cost (USD) Total annual cost (KRW) Total cost for 4 years (KRW)
Harvard University $56,550 $21,700 $1,000 $79,250 About 110.95 million won About 438 million won
Stanford University $62,000 $20,700 $1,000 $83,700 About 117.18 million won About 468.72 million won
Yale University $64,700 $20,400 $1,000 $86,100 About 120.54 million won About 482.16 million won
Princeton University $59,710 $21,250 $1,000 $81,960 About 114.74 million won About 458.96 million won
Columbia University $72,650 $21,720 $1,000 $95,370 About 133.52 million won About 534,080,000 won
Boston University $69,870 $19,970 $1,502 $91,342 About 127.88 million won About 511.52 million won
MIT $64,310 $19,010 $3,000 $86,320 About 120.84 million won About 483,360,000 won
📌 reference:Other expenses include health insurance, textbooks, personal expenses, etc. and may vary depending on the university and student's choice.

🎓 Compare the top private colleges in the US and Boston University's high-cost majors in 2025

University name High-Tuition Majors (Undergraduate) Annual Tuition (USD) Annual tuition (based on KRW 1,400) note
Harvard University Engineering and Applied Sciences (SEAS) $65,536 About 91.75 million won Same tuition regardless of major, additional fees for some labs may apply
Stanford University No major distinction $67,731 About 94.82 million won Same tuition for all undergraduate majors
Yale University Nursing $69,831 About 97.76 million won Includes integrated undergraduate/graduate courses
Princeton University No major distinction $65,210 About 91.29 million won Same tuition for all undergraduate majors
Columbia University No major distinction $72,650 About 117.1 million won Same tuition for all undergraduate majors
Boston University No major distinction $69,870 About 97.82 million won Little difference in tuition between undergraduate majors
MIT No major distinction (focused on engineering majors) $64,310 About 89.93 million won Same tuition for all majors, additional internship fee may apply for engineering/CS

 

Summary Points:

  • Most top universities offer undergraduate courses regardless of major. Fixed tuitionlevy.

  • Engineering disciplines using experimental and technical equipment Majors (especially MIT, Harvard SEAS, Stanford, etc.) have fees for lab use and fieldwork. Additional costsThis can stick.

  • Columbia Universityhas the highest overall tuition, and MIT is relatively reasonable, but living expenses, etc. are separate.

 

Top 5 Most Expensive Colleges in the US

  1. Harvey Mudd College

    • characteristic: It is a top liberal arts college specializing in engineering, math, and science. When purely based on tuition, it almost always ranks first in the entire United States.
    • Estimated Cost: The total cost (including dormitory, meals, etc.) exceeds **$93,000 (approximately 128 million won) per year**.

  2. University of Southern California (USC)

    • characteristic: A large, research-intensive private university located in Los Angeles, California. It is considered one of the most expensive schools, especially when considering the total cost of attendance.
    • Estimated Cost: The total cost is close to **$95,000 (approximately 131 million won) per year**.

  3. University of Pennsylvania (UPenn)

    • characteristic: It is an Ivy League university and is famous for its world-class business school, the Wharton School.
    • Estimated Cost: The total cost exceeds **$92,000 (approximately 127 million won) per year**.

  4. Columbia University

    • characteristic: As it is an Ivy League university, and because of its geographic advantage of being located in Manhattan, New York, the center of the world, the cost of living is high, making the total cost very high.
    • Estimated Cost: The total cost exceeds **$93,000 (approximately 128 million won) per year**.

  5. Brown University

    • characteristic: It is an Ivy League university famous for its liberal academic culture. It is characterized by an 'open curriculum' in which students design their own educational courses.
    • Estimated Cost: Total cost $91,000 per year (about 126 million won) It's a level.

3-2. Another trap called living expenses

This is something that many parents overlook. Cost of livingno see.
Tuition is just the tip of the iceberg; there are actually many more hidden costs.

💰Annual living expenses breakdown:

• Dormitory Fee: $15,000-$20,000

• Food expenses: $6,000-$8,000

• Textbook cost: $1,000-$2,000

• Personal allowance: $3,000-$5,000

• Insurance premium: $2,000-$3,000

• Airfare: 3-5 million won for round trip 2-3 times a year

It's like Hidden Charges of Smartphone PlansIt is the same as .
The basic fee may seem cheap, but as you actually use it, additional costs continue to arise.
The cost of living is especially high in major cities like New York, Los Angeles, and San Francisco.
Dormitories near Manhattan start at $3,000 a month, and meals typically cost $15-20 a meal.

4. Will it be solved with a loan? The swamp of debt

4-1. The Reality of Student Loans

“If you don’t have money, you can just get a loan.”
Many parents knock on the bank door with this thought in mind.
But the reality is much harsher than you might think.
The banks 'Plausible' loan productsThey tempt customers by emphasizing this.
They have fancy names like “Special loan for admission to prestigious American universities” and “Global talent development loan.”

📊Student Loans Reality check:

• Loan limit: 70-80% of collateral value

• Interest rate: 4-7% per year (floating rate)

• Repayment period: 10-20 years

• Grace period after graduation: 1-2 years

The problem is After graduation, half of my salary goes to loan repaymentThe point is that it can be.
If you borrow 500 million won and calculate it based on a 20-year repayment period, you will have to repay about 3-4 million won in principal and interest every month.
The monthly salary of a new employee is 4-5 million won, and more than half of that goes toward loan repayment.
at last ‘Youth Collateral’ Loan Continues Until 30sThis is it.
You enter society in your mid-20s and have to pay off your loans until your mid-30s.
During this period, all plans such as marriage, buying a house, or having children should be postponed.
4-2. The Time Bomb of Exchange Rate Fluctuations
The scariest thing about loans is Exchange rate fluctuation riskno see.
The exchange rate may be different when you borrow and when you repay.
For example, let's say you took out a loan of $100,000 (KRW 120 million) in 2020 when $1 = KRW 1,200.
However, if the current exchange rate in 2025 is 1,400 won, the same 100,000 dollars will become 140 million won.
In reality I have to pay 20 million won more A situation like this occurs.

⏰Real-world examples of exchange rate fluctuations:

Loans in 2019: $1 = 1,150 won

As of 2025: 1 dollar = 1,400 won

Increase in exchange rate: 17.4%

Additional burden for a 500 million won loan: approximately 87 million won

Many people regret 10 years later and ask, “Why did I do that back then?”
In particular, many households were hit hard when exchange rates soared in unexpected situations such as the 2008 financial crisis and the 2020 COVID-19 outbreak.
at last People in their 20s and 30s who are postponing marriage and home ownershipis mass-produced.
Internet communities are flooded with complaints like, “I graduated from a good university, but I can’t get married because of loans.”
Is this really the kind of child the parents wanted?

💔The reality of people in their 20s and 30s paying off loans

• Repay more than 50% of your monthly salary

• Marriage is delayed by an average of 3-5 years

• Give up on owning a home or postpone it for more than 10 years

• Ask your parents for additional financial help

 

5. Studying in the US from an investment perspective

Investment vs. Study Abroad with 500 Million Won (2025 Reality)

Investment/Optional Items Initial investment Real value after 4 years Expected value after 10 years Non-monetary value and description
🏘️ Major real estate in Seoul (partial share of mid-level apartment or jeonse investment) 500 million won About 580 to 650 million won About 650-800 million won High stability, short-term profitability may be low
📈 Domestic stocks (focused on ETFs/dividend stocks) 500 million won About 550-700 million won About 6.5 to 1 billion won Compound income + dividend income possible, but risks exist
🇺🇸 US stocks (S&P500 ETF, etc.) 500 million won About 600 to 750 million won About 750 million to 1.2 billion won Expected exchange rate gains, long-term rise expected
🎓 Undergraduate study abroad at prestigious American universities (e.g. Boston University, Columbia, MIT) 500 million won 0 won (degree assets) Possibility of earning over 100 million won per year Depending on your major/job, you can recover your investment within 10 years
🎓 MBA/Professional Study Abroad (Harvard MBA, Law School, etc.) 500 million won Obtaining a Professional Degree Potential for 10+ billion assets within 10 years Average starting salary of 150-200 million won or more possible, including network assets
Of course, as the saying goes, “studying is not an investment,” the value of education cannot be measured solely in monetary returns.

5-1. Why studying abroad in the U.S. is difficult to see as a realistic investment

Studying abroad in the United States is very expensive, and it is often difficult to expect financial returns. Unless you receive a full scholarship, the total cost for four years is approximately 500 million to 700 million won. If you consider this amount as a simple investment, it is a large amount that is not easy to recover.

5-2. The reality of local employment in the U.S. vs. returning to Korea

  • Average Salary at Big Tech Companies in the U.S.: Approximately $150,000~$250,000 (200~300 million)

  • Average annual salary at large Korean companies: 50 to 80 million won

However, the probability of getting a job at a big tech company in the US is very low, less than 5%. Most of them will eventually return to Korea, and if they do not get a job at a top company such as Google, Apple, or Meta, the economic return on investment will likely be negative.

5-3. Calculating the Cool Return on Investment (ROI)

item detail
Total cost of study abroad About 500-700 million won (based on 4 years)
Salary premium upon returning to Korea 10-20 million won per year (compared to before studying abroad)
Payback period Approximately 25 to 35 years or more (based on isolation)

If you had invested the same amount in real estate or stocks, you could expect to double your income within 10 years and 4-5 times within 20 years. From an economic perspective, studying abroad in the U.S. can be seen as a long-term, low-return investment.

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6. Look at smart alternatives

6-1. Countries with cost-effective study abroad options

🇩🇪 Germany

school expenses: Almost free (300,000-500,000 won per semester)

characteristic: Universities in countries that run free cafeterias

language: Operates multiple English language courses

🇳🇱 Netherlands

school expenses: 10-20 thousand euros per year

characteristic: Tuition fees cheaper than tulips

merit: English friendly, high level of education

🇨🇦 Canada

school expenses: Half of the US level

characteristic: It's like a neighborhood in the US, but much cheaper

merit: Friendly immigration policy

🇦🇺 Australia

school expenses: 30-40 thousand Australian dollars per year

characteristic: 'Double-job study abroad': studying while working

merit: Working HolidayCan be linked with

6-2. Asia's Rising Powers

🇸🇬 Singapore

characteristic: Small country, big education powerhouse

merit: Asian financial hub, English speaking

expense: 1/3 of the US level

🇭🇰 Hong Kong

characteristic: Education hub where East meets West

merit: International network, bridgehead for entering China

language: Acquire English and Chinese simultaneously

🇯🇵 Japan

characteristic: Opportunity in the Age of Enger

merit: High education level, relatively low cost

culture: Cultural intimacy with Korea

You can get a good education even if you are not in the United States. What matters is not where you learn, but what you learn and how you learn.

 

7. Presentation of realistic judgment criteria

7-1. Honest self-diagnosis before studying abroad

 Our Household Finance Checklist

  • Proportion of tuition fees to household assets: If it is above 50%, it is a red flag.
  • Living expenses after parents retire: Are you fully prepared?
  • Other family members: Is there no one who will sacrifice?
  • Emergency Fund: Is it possible to prepare 150% for the expected cost?
  • Loan Dependency: If your loan is 50% or more, you need to stock up

 Assessing your child's learning ability and adaptability

Honest questions:

  • Does my child really like studying?
  • Are you the type of person who adapts well to new environments?
  • Is your English level good enough to keep up with local classes?
  • Are you able to take good care of yourself on your own?
  • Do you have a clear career goal?

If you answered 'no' to more than half of these questions, it would be wise to consider other options rather than studying abroad.

Specificity of career plans after graduation
The vague expectation that “I’ll just graduate from a good university” is taboo. You need to have a specific major, career path after graduation, and employment plan.

7-2. Wise Choices as Parents

The first thing is to escape from the psychological pressure of “everyone else is sending it.”

Most of the success stories of studying abroad heard at Gangnam moms' cafes are from a very small number of cases.
We must remember that the failures of the silent majority go unheard.

 Parents' selection criteria

Children's happiness vs. parents' face
What really matters?

Present satisfaction vs future anxiety
Will you give up the certainty of the present and bet on an uncertain future?

Success of one person vs. stability of the whole family
It's wiser to make choices that make the whole family smile.

The true goal of education is for children to live happy and meaningful lives. That doesn’t necessarily have to be possible only through studying abroad in the United States.

 

8. Conclusion: Choose values, not brands

Don't be fooled by brand value and miss out on the actual educational content. What's important is what your child learns and what kind of person he or she grows up to be.

 Where does the true value of education lie?

A good education is not an expensive education. It's the right education for your child..

Success is not about which college you graduated from. What kind of life do you live?is determined by.

Family happiness is not created by one person's specifications. When everyone laughs together It's done.

The wisdom to compromise with reality but not give up on your dreams

Just because you can't study abroad in the United States doesn't mean you have to give up on your dream of becoming a global talent.

  • The development of online education: You can listen to lectures from Harvard and MIT at home.
  • Exchange student program: Sufficient experience is possible with just 1-2 semesters
  • Foreign companies in Korea: There are many opportunities to gain global experience.
  • Entrepreneurship and Personal Branding: An era where ability is more important than academic background
  • Various study abroad countries: Other options outside of the US
Key message:
Let's not sacrifice our family's present for our child's future.
Don't be fooled by the brand, pursue real value.
Let's find happiness for our family, not for others' eyes.

 

 conclusion

Studying abroad in the United States can certainly be a valuable experience, but there is no guarantee that it will always be the best choice. Cost effective, Child's disposition, Family life balance Considering these factors together can lead to a wiser decision.

Nowadays, it is more important than academic background or whether you graduated from a prestigious university. Individual creativity and capabilities, and the ability to find a path that suits you has become more important. In fact, there are more and more cases of people achieving great things in their own way without following the traditional path to success.

The most important thing is, In a direction where both the child and the family can be satisfied and happy It's a decision. Sometimes waiting a little can be a good choice, and there are many high-quality educational opportunities in the country, so you can open up various possibilities.

After all, studying abroad is just one option., as with all education, it is important to remember that the best education is the one that is 'right' for the child.

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*2025 US Work and Travel (Working Holiday) Crisis! If you miss it, you will have to wait a year – Article Go see

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