H.D. Vest quotes a study from The College Board that assumed college cost to increase 6% yearly, a rate much higher than the overall inflation rate and also higher than the typical increase in personal wages.
Four years at a private college in 2012 ($127,100) is expected to reach $362,800 in 18 years .
In-state resident 4-year tuition at a public university in 2012 ($37,800) could be $108,100 in 18 years.
Two-year community college students who finish their 4 year degree at a private school will shell out $73,700 today and likely $210,400 in 18 years.
Careful consideration of school choices can keep costs down. Some schools offer instate tuition to students who live in nearby states. For example, the Univ. of Toledo offers instate tuition to much of lower MI, and many schools in lower MI offer instate tuition to OH students. Some schools will waive out of state tuition to students with a B average or better. Attending a two-year community college and staying at home, and then transferring to a public university, can help keep costs down. Check into odd schlorships; Alma college in MI offers free tuition to students who play bagpipes. Just don’t wait until senior year to start searching and planning for these breaks. There are also tax breaks that will help keep costs down. These will be explained in further posts.
If you have children, or anticipate children, their educational future can have a dramatic impact on your financial health and retirement plans, something you don’t always think about when you bring that precious one home from the hospital. Obviously you can hope your infant will ultimately be granted lots of academic schlorships. Or that your child will be the 1% of high school students that receives a college athletic schlorship. (Yes, the percentage is that low.) Perhaps you’ll be fortunate and a long-lost departed relative will leave a ton of money to your children to help fund their education. If you don’t want to rely on one of those dreams, there are a few things actually within your control that will help your bottom line. My newest posts on college deductions/credits could be of interest to you.