The College Board published its annual Trends in College Pricing report last week. It’s no surprise that higher education costs continue to climb in absolute terms. But for students who receive grants or federal aid, college costs have actually declined over the past five years.
Survey results
4-year public colleges total average cost* for 2010-11 (in-state students) – $20,339
- Tuition and fees increased an average of 7.9% to $7,605
- Room and board increased an average of 4.6% to $8,535
4-year public colleges total average cost* for 2010-11 (out-of-state students) – $32,329
- Tuition and fees increased an average of 6.0% to $19,595
- Room and board increased an average of 4.6% to $8,535
4-year private colleges total average cost* for 2010-2011 – $40,476
- Tuition and fees increased an average of 4.5% to $27,293
- Room and board increased an average of 3.9% to $9,700
*Total average cost includes tuition and fees, room and board, books and supplies, transportation, and other miscellaneous costs.
According to the College Board: “Although average published tuition and fees increased by about 24% at public four‑year colleges and universities from 2005‑06 to 2010‑11, by 17% at private nonprofit four‑year institutions, and by 11% at public two‑year colleges, average net price for full‑time students, after considering grant aid and federal tax benefits, declined in each sector over this five‑year period, after adjusting for inflation.”
The full report is available here: http://trends.collegeboard.org/downloads/College_Pricing_2010.pdf
How valuable is a college education? In 2009, median family income for those with a bachelor’s degree or more was $99,707, compared to $48,637 for those with a high school diploma.
Higher education may be the greatest investment you can make for your children. But we suggest that you save for your own retirement before saving for college. There are other ways to finance an education if necessary. Building financial security that you won’t outlive doesn’t provide many alternatives aside from your ability to save and invest.
~ Brooks, Hughes & Jones, Partners in Wealth Management — Gary Brooks, CFP®, Allyn Hughes, CFP®, CLU, ChFC, Nancy Jones, CFP® — Tacoma, WA
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