Planning for College
|
The cost of college continues to
grow. In 2008/2009 there was a 6.6% increase in the average annual cost of
a four-year public university. College tuition and fees have risen 2.9%
pear year after inflation in the last decade. The government has
responded with numerous tax-advantaged programs in the form of
deductions and credits and in the creation of 529 Plans.
Additionally, academic institutions have a myriad of financial aid
opportunities. |
College Facts for
2008/2009
 |
Average annual four-year
private college tuition and fees is $23,712 (a 6.3% increase). |
|
Average annual four-year
public in state college tuition and fees is $6,185 (a 6.6% increase). |
|
Average annual two-year
public college tuition and fees is $2,361 (a 4.5% increase). |
|
The average annual surcharge
for out-of-state tuition is $10,455 at a four-year public
college. |
|
With room, board, books,
supplies, transportation and miscellaneous costs added in, the annual
cost is $17,336 for a four-year public college that
includes $7,404 for room and board, $988 for books and supplies, $911 for
transportation and $1,848 for personal expenses. |
| $130 billion in financial
aid is available. Average financial aid for tuition and fees is $9,300
at a four-year private college, $3,600 at a four-year public
college, and $2,040 at a two-year public college. |
Other Facts
| Only 15% graduate in four
years or less and 43% do not finish in five years. |
|
56% of students attending
four year colleges pay less than $9,000 per year in tuition and
fees. |
|
Of parents saving for
college, 52% use savings accounts, 29% use savings bonds and less than 25%
use 529 plans (Fidelity Investments Poll 10/3/06). |
|
Over a lifetime, the earnings
gap between a high school diploma and a college degree can be more than
$1,000,000. |
|
Honest but foolish news --
17% of parents didn't even think about saving for college until their
children were between 16 - 20 years old (John Hancock Survey 5/17/07). |
|
Good news -- 66% of
grandparents will probably or definitely spend time planning for college in
the next five years. (Hartford Survey 3/08). |
|
|
