How Much Will College Cost?
Getting an idea of how much you'll need is a valuable first step in any funding plan. The average total bill for the 2011-2012 academic year at a public college as an in-state student was $17,131. A year at a private institution was more than twice as much: $38,589.1
Those are today’s costs. Now consider how much it will cost when your child is ready to go to college! For the past decade, published tuition fees at public four-year colleges rose at an average annual rate of 5.6% beyond general inflation. At that rate, a child born in 2012 could end up paying $527,236 as a college freshman in 2030.2
Among the key questions facing most individuals when developing a college financing plan are:
- How much do I need to save?
- How much must my investments earn at a minimum to keep pace with rising college costs?
- Will I be able to save the amount I'll need and still meet other important financial goals, like my retirement?
These questions are extremely important and should be talked over with your financial advisor. If you don't already have one, call us at 1-800-896-2645 for assistance
Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. Download a prospectus that contains this and other information about a fund, and read it carefully before investing.
1The College Board. Includes tuition, fees, room and board.
2The College Board College Cost Calculator. Estimate assumes attendance at a 4-year private college or university and that college costs rise at 6% each year until 2030.