Ten Minute Professor: A 5th Year of College Is Expensive

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How choosing the right college can help your student graduate in four years, avoid extra debt, and start their career on time.

By SAGE Scholars — March 1, 2025

Tags: 10-minute-professor, college-student, college-transition, engineering, internships, sage-scholars-program, student-housing

Ten Minute Professor: A 5th Year of College Is Expensive

More students than ever are taking longer than four years to earn a college degree. For families focused on saving money and launching careers on time, choosing a college with strong four-year graduation outcomes is more important than ever.

"Seven years of college down the drain!"
- John Belushi, Animal House

Once a joke, the idea of spending more than four years in college has become an expensive reality. A fifth or even sixth year of study is common-especially at public universities. But those extra years come with steep financial and personal costs.

Graduating Late Comes with Real Costs

Students who take longer to finish college face three major setbacks:

Higher total expenses: Another year means another round of tuition, housing, food, books, and fees. Tuition alone is often 12-20% higher in year five than it was in year one.
Lost income: Each delayed year postpones entering the workforce and earning a full-time salary.
More debt: Students who graduate in six years instead of four take on, on average, 70% more loan debt.

How Do Private and Public Colleges Compare?

College Type	4-Year Graduation Rate
Private Non-Profit Four-Year	68%
Public Four-Year	35%

Source: College Raptor

This means that students at private nonprofit colleges are nearly twice as likely to graduate in four years compared to those at public institutions.

Did you know? Private colleges typically invest $7,500 more per student per year than public colleges, leading to better advising, mentoring, and academic support.

SAGE Scholars Member Colleges Outperform

Many SAGE Scholars member institutions report 4-year graduation rates above 60%, with some exceeding 70%. These colleges tend to offer stronger academic support systems, smaller class sizes, and more personalized advising-factors that help students stay on track.

Examples from Around the Country

Higher-performing public schools: UVA (89.5%), UNC-Chapel Hill (84.9%), William & Mary (84.5%)

Lower-performing examples: Oklahoma State (39%), LSU (38%), Cal State Long Beach (28%), Purdue NW (21%)

Why Private Colleges Lead in On-Time Graduation

Higher per-student investment: ~$17,500 at private colleges vs. ~$10,000 at public universities.
Smaller class sizes: Easier access to faculty and individualized support.
Better advising: Private institutions often provide more proactive academic guidance.
Stronger student retention programs: Early intervention when students are at risk of falling behind.

When a Fifth Year Makes Sense

Sometimes, a longer college path is intentional or beneficial:

Engineering majors often take five years due to course requirements.
Co-op programs (e.g., Northeastern, RIT, Cincinnati) offer paid work experience during extended degree timelines.

What Families Can Do

Look at 4-year graduation rates when comparing schools-not just 6-year data.
Ask about student support services: tutoring, advising, mental health, and career counseling.
Plan for cost increases: a fifth year can be 10-20% more expensive than the first year.
Start early with career planning: choose a major with confidence to avoid switching paths later.
Seek expert guidance: college advisors and career coaches can help your student make smart, long-term decisions.

The Bottom Line: Time Is Money

Graduating in four years isn't just ideal, it's a smart financial strategy. Students who finish on time avoid thousands in added costs, enter the workforce sooner, and borrow less money overall.

Private colleges, especially those in the SAGE Scholars Tuition Rewards Consortium, provide the support and resources students need to stay on track and graduate on time. While the sticker price may be higher, the overall value can be greater when time and outcomes are factored in.

SAGE Scholars

At SAGE Scholars, we deeply believe in the value and quality of private higher education. Our mission is to provide access to affordable college opportunities while bringing together families, colleges & universities, and benefit providers to create college funding solutions. Since 1995, SAGE Scholars has bridged the gap between students who want a quality private college education and colleges that will work closely with member families to ensure affordability - all at no cost to the families.

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