College requires a significant financial commitment that many families feel is warranted to help students succeed later in life. While tuition is a large part of the price tag for college, the total cost of attendance can be much higher when considering additional expenses, including meal plans, housing, transportation, and books. Families will have to do all they can to save for college as prices continue to climb.
Bankrate notes the cost of college has skyrocketed in the last 30 years.
A number of variables will affect the cost of a college education. According to Mark Drozdowski, a higher education journalist and Johns Hopkins faculty member, college costs have far outpaced inflation and are 60 to 70 percent more than they were in 2000. The College Board, which oversees SAT testing, indicates the average total price for a public four-year in-state school for 2024-2025 was $29,910. The average cost to attend a four-year public college in another state was $49,080. A private, nonprofit four-year college cost an average of $62,990 annually. Some prestigious universities are now approaching $100,000 per year for total college costs.
Saving strategies can make attending college attainable for more children, and the following are some approaches that may help families along their college journeys.
Take advanced placement or dual enrollment classes
Students have the option in many high schools to take classes that could count for college credit, reducing the number of college courses required at the college tuition rate. AP classes are rigorous, college-level options offered by The College Board that require passing an AP exam at the end of the year. Colleges can accept that AP course for credit when kids perform well on the exams. DE classes are actual college courses offered by neighboring colleges to students who are still in high school. Once a course is completed, students will have credits that are accepted by many other colleges and universities.
Enroll in an early college academy
Certain high schools offer competitive programs to high-achieving students wherein they can earn associate degrees concurrently with their high school diplomas. Upon graduating high school, students in such programs already have two years of college under their belt. Provided the student enrolls in a college that will accept those credits, they can save on two years of college tuition and fees.
Start early with a college savings plan
The financial services provider Ramsey suggests parents start tax-advantage college savings accounts for their children as early as possible. These savings options include 529 plans, Coverdell Education Savings Accounts, Universal Gift to Minors Act accounts, and Universal Transfer to Minors Act accounts. Each plan comes with certain advantages and disadvantages, and a financial planner can walk families through the best option for their situation. Some families also set aside a portion of income each paycheck to put toward college savings.
Apply for aid
The formula for determining financial need is ever-evolving, so families should apply for federal aid to determine their eligibility. Schools use the Free Application for Student Aid (FAFSA) in the United States to determine student eligibility for grants, work-study and scholarships, as well as federal loans.
College expenses have risen dramatically. It’s now more important than ever to save as much as possible for higher education.
