By Kevin Theissen
It doesn’t take a degree in finance to see that the cost of college continues to rise.
In its 2015 report, the College Board showed that public four-year institutions raised prices an average of 3.4 percent annually between the 2005-06 and 2015-16 school years. Put another way:
A $5,000 education in 2005-06 would cost $6,985 in 2015-16.
For a few families, the lion’s share of education costs falls on parents and, in some cases, on grandparents. Generally the majority of families rely on a combination of scholarships, grants, financial aid, part-time jobs, and parent support to help pay the cost.
Tuition and fees for private four-year institutions averaged $32,405 for the 2015-2016 school year. If you add room and board, the figure rises to $43,921, according to the College Board.
If your child is approaching college age, a good first step is estimating the potential costs.
There is a number of resources that can help individuals prepare for college. The U.S. government distributes certain information on colleges and costs. Here are two sites to consider reviewing:
- studentaid.ed.gov (the government’s college and financial aid portal)
- collegeboard.org (the group that administers the SAT test)
Another resource to strongly consider would be to find an experienced registered investment advisor that understands education savings and investing.
The earlier you start saving, the easier coming up with the funds necessary will be.
Kevin Theissen, Skygate Financial Group, Ludlow, kevin@skygatefinancial.com.
