The Looming College Funding Crisis. I am doing a seminar on College Funding tonight and getting ready for it gave me a great chance to review all the alternatives and the growing problem facing lots of families with children. The cost of a four year college education has become a very significant number. Tuition and fees are currently:
Private College $116,000
Public University $ 30,500
2 Yrs JC & 2 Yrs Priv . $ 66,900
But that doesn’t include room and board, books, transportation, which probably adds another $8,000 to $10,000 a year.
What About 2027? The costs above are what you face if you have a child in or entering college right now. But what about if you have a newborn or young child? In 18 years from now, the projections for college costs (tuition and fees only) are even more grim:
Private College $332,000
Public University $ 87,200
2 Yrs JC & 2 Yrs Priv. $191,200
the fact that college tuition and fees are rising on average at 6 percent per year, faster than general inflation. While there are a number of programs and sources of funding available, parents and families that plan for this important and expensive event are far and away ahead of those that do not, and it may well be the difference between a child going to their college of choice and having to go to a second best choice.
What can parents do to avoid this crisis? Start planning and implement a program now. Through taking into account what is important, you can focus and work on it over time and prevent it from ever becoming a big problem. It’s really pretty simple; determine the goal, a reasonable course of action, and then start. Regardless of how many years before a child is ready to start college, planning for that event can help improve the options and reduce the burden. Estate planning is about preserving your wealth and planning for your family. A college funding plan should be an integral part of your estate plan and your financial plan. [To Be Continued]
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