Saving for College: How Much Will It Cost?
American Century Investments
The costs of college continue to rise each year, which means you’ll need to
save even more for your child’s education just to keep up. For the 2005-2006
school year, public colleges and universities raised their tuition and fees by
an average of 6.6% over last year’s costs. That’s more than twice the rate
of inflation.
Historically, college costs have risen an average of about 5% a year. At that
rate, a child in kindergarten today will need more than $126,000 for four years
of tuition and expenses at an in-state public college and about $259,000 for a
private college.
The earlier you begin investing, the more time your investments will have to
grow. Time is one of your most powerful allies when investing for college.
What’s more, people who graduate from college have a greater chance of finding
good jobs at higher pay than those with only a high school diploma.
The Rising Cost of College
This chart projects the average four-year costs for college expenses including
tuition, fees, books, supplies, room, board, transportation and other costs in
the United States, assuming a 5% annual increase in expenses.
|
4-YEAR COST
|
Child’s Age |
4 Years
Beginning |
Public
(In-State) |
Public
(Out-of-State) |
Private |
| 18 (College
Freshman) |
2005-2006 |
$67,091 |
$100,163 |
$137,562 |
| 17 |
2006-2007 |
$70,446 |
$105,171 |
$144,440 |
| 16 |
2007-2008 |
$73,968 |
$110,430 |
$151,662 |
| 15 |
2008-2009 |
$77,667 |
$115,951 |
$159,245 |
| 14 |
2009-2010 |
$81,550 |
$121,749 |
$167,207 |
| 13 |
2010-2011 |
$85,628 |
$127,836 |
$175,568 |
| 12 |
2011-2012 |
$89,909 |
$134,228 |
$184,346 |
| 11 |
2012-2013 |
$94,404 |
$140,939 |
$193,563 |
| 10 |
2013-2014 |
$99,125 |
$147,986 |
$203,242 |
| 9 |
2014-2015 |
$104,081 |
$155,386 |
$213,404 |
| 8 |
2015-2016 |
$109,285 |
$163,155 |
$224,074 |
| 7 |
2016-2017 |
$114,749 |
$171,313 |
$235,278 |
| 6 |
2017-2018 |
$120,487 |
$179,878 |
$247,041 |
| 5 |
2018-2019 |
$126,511 |
$188,872 |
$259,394 |
| 4 |
2019-2020 |
$132,836 |
$198,316 |
$272,363 |
| 3 |
2020-2021 |
$139,478 |
$208,232 |
$282,981 |
| 2 |
2021-2022 |
$146,452 |
$218,643 |
$300,280 |
| 1 |
2022-2023 |
$153,775 |
$229,575 |
$315,295 |
| Newborn |
2023-2024 |
$161,463 |
$241,054 |
$331,059 |
|
|
|
|
Source: American Century
Investments and actual data from "Table 5: Average
Student Expenses, by College Board Region, 2005-06
(Enrollment-Weighted)." Trends in College Pricing
2005. Copyright ©2005 by College Entrance
Examination Board. Reproduced with permission. All
rights reserved.
www.collegeboard.com |
|
|
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