Lesson #1: Graduating Faster, Cheaper, Using the Costco Principle

Introduction:

This lesson will inform you on the undergraduate credit plateau, and how it will help you graduate from school faster and with spending less money.

The Undergraduate Credit Plateau:

Most universities have built into their tuition costs what is called a undergraduate credit platueau. What this means is that any classes registered past your first twelve credit hours are free, usually with a limit of about 18. In short, the more classes you take at once, the less you will pay. It's the Costco Principle.

Example:

Lets say your major requires 120 credit hours for a degree. If you take twelve credits per semester, at a rate of $100 per credit, you will graduate in ten semesters. You will pay $12,000.

Using the same standards, if you take 15 credits, you will graduate in eight semesters, paying $9,600 and saving $2,400. Not bad.

Practice:

Use this exercise sheet to find out how much you can save, if you're willing to put in the work.

1. ____ (credit hours required for degree) X ____ (price of credit hours) = _____

2. ____ (number of credit hours over 12) X ____ (price of credit hours) = _____

The answer to problem #1 is how much you will pay at 12 credits per semester.

The answer to problem #2 is how much you will save taking more than twelve credits per semester.

Find the difference to know how much you will save!

To calculate how many semesters it will take you to graduate, see problem #3.

3. ____ (credit hours required for degree) / ____ (credit hours taken per semester) = ____

Conclusion:

Take more classes. Pay less money. Graduate Faster.

Enjoy.