College Costs are Rising—Are You Keeping Pace? |
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We all know that college costs are rising. For 2008-2009, The College Board® reports that the average cost for tuition and fees at private four-year colleges is $25,143, up 5.9 percent over last year. Although the $6,585 average cost of tuition and fees at a four-year public college is a lot less, these costs are up 6.4 percent from last year. In the past 10 years, the average inflation-adjusted cost of tuition and fees has risen by 24 percent at private four-year colleges and 42 percent at four-year public colleges.1
If college costs were to increase 5 pecent per year, in 10 years the average cost of tuition and fees at a four-year private college would be $40,955 each year, and the average cost at a four-year public college would be $10,726. That's a four-year total of more than $42,900 for a public college and nearly $164,000 for a private school—and this is just tuition and fees! For 2008-2009, The College Board® reports that room and board charges average $8,989 at four-year private colleges and $7,748 at four-year public colleges.
Source: Trends in College Pricing 2008, The College Board®. Assumes a 5 percent increase in college costs each year and a child entering college at age 18.
But don't despair. While college costs are rising, many colleges still remain affordable. The College Board® reports that 38 percent of students attending a four-year public college pay less than $6,000 in tuition and fees, and 89 percent of students attending a public college pay less than $12,000.
So college is still within reach for most families, but especially for those that start saving for it early.
1 Source: Trends in College Pricing 2008, The College Board®.
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