42%: Increase in cost of public college over the past 10 years*
Although the beginning of a new year is generally a time to look ahead, consider taking a moment to look backward-at trends in college tuition. Between the 2000-01 school year and the 2010-11 school year ten years later, prices for undergraduate tuition, room and board at public college and universities rose 42%, after adjustment for inflation. For the academic year at the tail-end of that decade (2010-11), that cost was estimated to have risen to $13,600 at public institutions. At private institutions that number could be on average $10,000 or $20,000 more, depending on whether the school is not- for-profit.
Considering that these numbers will only continue to rise, are you setting realistic goals for your current education savings plans?
*Source: U.S. Department of Education; National Center for Education Statistics, 2012
As a financial advisor who personally used a college savings plan for my children, I know how helpful this was in paying for their college. If you have children or grandchildren 15 yrs. old or younger it makes sense to start a college savings plan for them. In some states you even get a small income tax deduction for starting a plan. Call me to discuss how a college savings plan can help with college funding. Jay