It doesn’t take a degree in finance to see the cost of college continues to rise.
In its 2019 report, the College Board showed that public four-year institutions raised prices an average of 2.2% annually beyond inflation between the 2009-10 and 2019-20 school years. Put another way, a $5,000 education in 2009-10 would cost $6,216 in 2019-20.
Tip: Public Costs. Average in–state tuition and fees for public four-year institutions was $10,440 for the 2019-2020 school year. Out-of-state tuition for these same institutions averaged $26,820.
Source: College Board, 2019
For a few families, the lion’s share of education costs falls on parents and, in some cases, on grandparents. Generally the majority of families rely on a combination of scholarships, grants, financial aid, part-time jobs, and parent support to help pay the cost.
Fast Fact: Private Costs. Tuition and fees for private four-year institutions averaged $36,880 for the 2019-2020 school year. If you add room and board, the figure rises to $49,870.
Source: College Board, 2019
If your child is approaching college age, a good first step is estimating the potential costs. The accompanying worksheet can help you get a better idea about the cost of a four-year college.
If you’ve already put money away for college, the worksheet will take that amount into consideration. If you haven’t, it’s never too late to start.
Resources
There are a number of resources that can help individuals prepare for college. The U.S. government distributes certain information on colleges and costs. Here are two sites to consider reviewing:
www.studentaid.ed.gov
The government’s college and financial aid portal.
www.collegeboard.org
The group that administers the SAT test.
Estimating the Cost of College
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