How much will college cost?

When you think back, the days of sitting in your dorm room debating the merits of your schools football team don’t seem that far away. But before you know it, little Billy and Sally are going to be headed off to the same hallowed halls that you once ran amuck in.

Of all the goals that people save and invest to meet, the college education of their children is near the top of the list. While you may still be paying off your college loans, getting an idea of how much school will cost for them is a valid concern.

Taking a look at the cost over the last few years, prices are continuing to go up. While the average increase per year is about 5 percent, from 2003 to 2004, public universities and colleges raised their tuition by a staggering 14 percent in one year. That is more than four times the current rate of inflation.

Assuming you didn’t choke reading that last paragraph, what can you do to try to figure out what college will cost for your kids? Well, the first step is trying to figure out which kind of school little Billy or Sally will want to attend. The least expensive choice would be an in-state, public university. The average cost of these in 2005 was around $67,000 for four years. And that is assuming that your child graduates in four years, most students these days do not.

The next choice up the ladder is attending a public school out of state. This can be a good choice if your child shows an aptitude for a major that another school out of state is highly regarded in. The average cost in 2005 for four years at an out of state public school is around $100,000 dollars.

The most expensive but some believe the best option would be a private university. These schools don’t figure in residency into their tuition numbers. For four years at a private school in 2005, the cost was around $137,000. Also, you should take into consideration majors, such as medicine or law, which take more than four years.

A final tip to consider is that these days, a bachelor’s degree is worth less and less. Graduate school is becoming more and more common just to be able to get a good job. And the tuition rates charged for grad school are usually much higher.

Paying for college isn’t easy. But with sound financial planning and a good knowledge of what it will cost in the future, saving for school doesn’t have to be as nightmarish as you think.

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