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Budgeting for an education
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Home > College Planning > Budgeting for an education |
Student Loans – Budgeting for an education. The costs of college continue to go up each year, which means you’ll need to save even more for your child’s education just to keep up. For the 2003-2004 school year, public colleges and universities increased their tuition and fees by an average of 14.1% over last year’s costs. That’s more than four times the rate of inflation.
Historically, college costs have increased an average of about 5% a year. At that rate, a child in kindergarten today will need more than $112,000 for four years of tuition and expenses at an in-state public college and about $240,000 at a private college.
But tuition is just the beginning. Room and board costs have risen between 4 and 5% during the 1999-2000 school year, and there are many other costs to be considered. One option is to use Student loans.
| Cost per year | 4-year private college | 4-year public college |
| Tuition: | $16,332 | $3,510 |
| Books: | $730 | $704 |
| Room & Board: | $6,209 | $4,960 |
| Transportation: | $573 | $643 |
| Other Expenses: | $1,102 | $1,521 |
| Total: | $24,946 | $11,338 |
The Average Cost of College
The sooner you begin investing, the more time your investments will have to grow. Time is one of the most powerful allies when investing for college. What’s more, people who graduate from college have a greater chance of finding better jobs at higher pay than those with only a high school diploma.
The Rising Cost of College
This chart projects the average four-year costs for college expenses including tuition, books, fees, supplies, room, transportation, board and other costs in the United States, assuming a 5% annual increase in expenses.
4-YEAR COST
Childs'age |
4 yrs
beginning |
Public
(In-State) |
Public
(Out-of-State) |
Private |
| 18 (Col Fresh) |
2003-2004 |
$59,622 |
$89,991 |
$127,325 |
| 17 |
2004-2005 |
$62,603 |
$94,491 |
$133,692 |
| 16 |
2005-2006 |
$65,733 |
$99,215 |
$140,376 |
| 15 |
2006-2007 |
$69,020 |
$104,176 |
$147,395 |
| 14 |
2007-2008 |
$72,471 |
$109,385 |
$154,765 |
| 13 |
2008-2009 |
$76,094 |
$114,854 |
$162,503 |
| 12 |
2009-2010 |
$79,899 |
$120,597 |
$170,628 |
| 11 |
2010-2011 |
$83,894 |
$126,627 |
$179,160 |
| 10 |
2011-2012 |
$88,089 |
$132,958 |
$188,118 |
| 9 |
2012-2013 |
$92,493 |
$139,606 |
$197,523 |
| 8 |
2013-2014 |
$97,118 |
$146,586 |
$207,400 |
| 7 |
2014-2015 |
$101,974 |
$153,915 |
$217,770 |
| 6 |
2015-2016 |
$107,072 |
$161,611 |
$228,658 |
| 5 |
2016-2017 |
$112,426 |
$169,692 |
$240,091 |
| 4 |
2017-2018 |
$118,047 |
$178,176 |
$252,096 |
| 3 |
2018-2019 |
$123,950 |
$187,085 |
$264,700 |
| 2 |
2019-2020 |
$130,147 |
$196,439 |
$277,935 |
| 1 |
2020-2021 |
$136,655 |
$206,261 |
$291,832 |
| Newborn |
2021-2022 |
$143,487 |
$216,574 |
$306,424 |
Tuition at public colleges and universities for students who are residents of the state where they attend college (in-state) is generally much less than that for a student who is not a resident of the state (out-of-state). Some states may allow students from neighboring states to attend college as an in-state student. The tuition at most private colleges and universities is the same for both in-state and out-of-state students.
The amounts listed in the table are estimates. Actual amounts could be more or less, probably more. For a better assessment of your college/university expenses, look at the catalogs of the various schools you are interested in and use the information you find to calculate a more realistic estimate. If you do not have the current catalog, call the admissions office and ask about the cost of tuition, related fees, room and board for a year. Personal, transportation, and miscellaneous expenses are variable costs and depend primarily upon your needs. Some colleges and universities have estimates for these costs. Others may not. The amounts listed in the preceding table should suffice if you cannot reach an estimate on your own. The cost of books also varies, but most institutions should be able to give you a general average. In general, the cost for books at private institutions is slightly higher than those at public institutions. For specific costs and expenses at thousands of colleges throughout the United States, refer to the College Board's annual handbook, College Cost & Financial Aid Handbook or their web site, http://www.collegeboard.org.
Future College Cost Calculator
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