According to the College Board for the 2016-2017 Academic Year, the average in-state tuition and fees at a four-year public college is $9,650 and $33,480 at a four-year private not-for-profit college. For room and board, add $10,400 to the public institution and $11,890 to the private not-for-profit college. So, now you have a total annual cost of $20,050 for public and $45,370 for private, and that is for tuition and fees alone! And for the cost of a public four-year, out-of-state, on-campus expense. For tuition and fees, it is $24,930and for room and board, $10,440. That is a total of $35,370!
But what about the additional expenses for books, computers, transportation, entertainment, etc.?
Based in today’s dollars, in the 10-year period since school year 2007-2008, public in-state, four-year tuition fees increased by 34.90% while private not-for-profit, four-year jumped by 23.69%.
In twenty years, the average four-year college education is expected to cost around $190,000 for public schooling and $330,000 for a private education, according to a recent poll. At the same time, parents actually only save an average of $9,956 for their children’s higher education.
In a research conducted by Allianz Life of North America that measures the effect of the economy’s impact on college savings revealed that one in four people are decreasing or stopping their contributions to their children’s college education. The study also showed that 25% of U.S. households are contributing less or have stopped entirely and a staggering 44% have not started at all!
Research also shows that many individuals struggle to develop education funds in advance of their children’s entrance to college or private elementary and secondary schools. Many never even attain this goal together with other financial goals simply because they were never informed or exposed to the financial realities of life.
And as the old saying goes, “They didn’t plan to fail, but rather failed to plan.”
The key then is planning! A sensible workable financial game plan to chart your children’s way to college or if yourself is looking at funding your way to college.
Sources: trends.collegeboard.org ; educationnews.org