Saving for College the Smart way - 529 Plans          

 

How Much will College Cost?

The price of attending college -- be it a 2 or 4 year institution -- is rising at a fast rate.  Here's a look at how much you can expect for your son or daughter to attend college.

4 Year Public School - in State

The current average in-state tuition is around $13,000.  Assuming 7% college cost inflation, you can expect to pay:

  • $81,000 if you start college in 5 years
  • $114,000 if you start college in 10 years
  • $195,000 if you start college in 18 years

4 Year Public School - Out of State

The current average cost for out-of-state tuition to a public university is $19,000.  Assuming 7% college cost inflation, you can expect to pay:

  • $118,000 if you start college in 5 years
  • $166,000 if you start college in 10 years
  • $285,000 if you start college in 18 years

4 Year Private

It costs about $28,000 a year to attend the typical private university.  Assuming 7% college cost inflation, you can expect to pay:

  • $174,000 if you start college in 5 years
  • $245,000 if you start college in 10 years
  • $420,000 if you start college in 18 years

So how much do you have to save each month?  It depends on how much you expect to earn from your investments, and also how much college costs continue to rise.  Historically, college costs have risen 5% to 8% per year. 

For a better idea of how much to save, consider contacting a financial advisor.

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