College Costs are Rising—Are You Keeping Pace? |
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We all know that college costs are rising. For 2007-2008, The College Board® reports that the average cost for tuition and fees at private four-year colleges is $23,712, up 6.3% over last year. Although the $6,185 average cost of tuition and fees at a four-year public college is a lot less, these costs are up 6.6% from last year. In the past 5 years, the average cost of tuition and fees has risen by 31% at private four-year colleges and 51% at four-year public colleges.1
If college costs were to increase by just 5% per year, in 10 years the average cost of tuition and fees at a four-year private college would be $38,624 each year, and the average cost at a four-year public college would be $10,075. That's a four-year total of more than $40,299 for a public college and nearly $154,497 for a private school—and this is just tuition and fees! For 2007-2008, The College Board® reports that room and board charges average $8,595 at four-year private colleges and $7,404 at four-year public colleges.
Source: Trends in College Pricing 2007, The College Board®. Assumes a 5% 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 45% of students attending a four-year public college pay less than $6,000 in tuition and fees, and 89% 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 2007, The College Board®.
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