Proper planning can help put a college education within reach
Expenses related to college education have risen drastically over the past 2 decades. More and more subtenants are graduating with student loan debts. If you are a parent and are concerned if you will be able to cover your child’s college tuition – don’t worry, this has become the norm rather than the exception.
However, how much does college really cost?
The College Board, publishes an annual report detailing the Trends in College Pricing. Said report includes in-depth analysis of the expenses included into attending college. This report is based on the College Board’s Annual Survey of Colleges, which has been conducted in nearly 4,000 schools across the United States.
A private nonprofit 4-year college will charge you with $46,950.1 for tuition fees and roam boarding. That was the average amount for the 2017-2018 academic year. While this is an amount that can cause lip-biting even for the most financially sound families, on closer examination we will see that most students do not pay the full price. For instance, the average total published price for tuition and fees, excluding room and boarding, was $34,470 in 2017-18, but the average net price was only $14,530— which leaves us with a difference of $20,210.
It goes without saying but public college students pay significantly less compared to the private college attendees. The average rate for a 40year in-state college is $20,700 (once again the data is from 2017-2018), more than half of the amount you will need to pay for a private education. It should also be taken into consideration that public colleges don’t provide tuition discount, so there is no real difference between the published price and the net price.
While planing for the financial aspect of college it’s also important to consider the day to day expenses, such as rent and food. If your child continues to live at home you won’t have to worry about his rent. The only costs that will be left to cover are his basic living needs. Financial aid could also be used as a huge benefit when it comes college bills. In fact it’s such a huge benefit that according to the College Board reports the average full-time undegraduate enrooled in a private nonprofit 4-year college receives enough grant aid to cover about 60% of tuition and fees. Additionally there are states that offer tuition waivers to groups such as such as veterans, teachers, or dependents of college employees.
We have discussed several methods by which you can reduce the expenses for your child’s education. Regardless a college education still remains a financial burden for most families. However, a college education shouldn’t be looked upon solely as an expense, but also as an investment in your child’s future.
When it comes to this it’s best to start saving as early as possible. With money set aside, your child can make their college choice based on whats the best fit, rather than what’s financially available. Even if you are not able to send your child to his dream college, you will still be able cover most of his student debt. Any amount that you can save for your child will be a great benefit in the long run.
Establishing disciplined saving habits is key to saving enough to cover all or a significant portion of your child’s education. It is wise to explore every possible way that you can save money for your child’s degree as soon as possible.