College students approach university life expecting a transformative experience. They are on a mission to gain knowledge, leadership skills, and valuable connections, hoping to improve their quality of life after they walk across the graduation stage.

Numerous studies confirm that overall well-being and productivity do, in fact, improve with a college degree, and these benefits are understood by most students.

Yet what is not clearly understood is how the spiraling true cost of a college education impacts their future and how to determine the future return on their overall educational investment relative to the costs.

Reality dictates that not all investments in formal education bear fruit over the long haul, especially when financed through debt. The pursuit of higher education is like all investments-it is seldom made with perfect foresight.

Best advice: weigh the benefits against the costs.

First, look at the actual dollar cost. In Michigan, in-state tuition and fees alone at public universities average around $12,000 per year, while out-of-state students pay an average of $33,000.

Good news locally: Northern Michigan University offers Michigan residents the second-lowest tuition rate in the state.

Factoring in room and board adds roughly about $10,000 more to the annual price tag. This doesn’t include books, supplies, and other learning materials, the cost of which hovers around $1,300. The bottom line is: College is expensive.

Additionally, the expenditures often do not represent the whole cost of attending college when one considers sacrificed income (full or part-time) that could be earned by working a job that only requires a high school degree or its equivalent. That is, if a recent high school graduate can find a full-time job paying $15 an hour, $30,000 per year would flow into the person’s household or $120,000 over four years. Take notice that no mention has been made of debt financing so far. In reality, it should.

To lower costs, college-bound student should be encouraged to work part-time and use earned income for non-educational items food, clothing, entertainment, and recreation.

Students should also determine the future earning capacity of different types of degrees and factor in anticipated market conditions. Research the median incomes, working conditions, and the job outlook of occupations in the Bureau of Labor Statistics’ Occupational Outlook Handbook (bls.gov/ooh).

Finally, they should examine the difference between the likely income to be earned with a high school degree versus that with an associate’s degree, technical school or apprenticeship, bachelor’s, master’s or terminal degree in various occupations.

While the pursuit of a bachelor’s degree has become an almost standard expectation in today’s society, there are other options that can be just as rewarding and that make better financial sense. For instance, if a particular bachelor’s degree opens a career path that promises a relatively low income, students might consider a double major that offers a way to earn complementary income. Another option? Pursue an associate’s degree or certificate with low or tuition and then find an employer that will pay for additional college while you are working. Or work full time while completing a degree online.

Connect with your local university to consider options. Locally, students can choose programs ranging from diploma, certificate and associate levels to bachelor’s and master’s degrees at Northern.

Students should be aware that some post-secondary paths will fail to secure high-paying employment, and it may lead to financial insecurity when funded by heavy debt. With college costs increasing, it’s more important than ever to consider potential trade-offs and the full complement of options when weighting educational benefits against educational costs.

Editor’s note: Tawni Hunt Ferrarini is a senior fellow at the Fraser Institute and the Sam M. Cohodas professor of economics at Northern Michigan University. She is a co-author of a newly released book, “Common Sense Economics: What Everyone Should Know about Prosperity and Wealth.”