Page 29 - EQ Mag-issue 5

COLLEGE SAVINGS RESOURCE

HOW WILL PARENTS & STUDENTS

SURVIVE COLLEGE TUITION COSTS

By Christian F. Cartwright

hile researching college tuition costs, some of According to the Federal Reserve Bank of St. Louis, U.S.
the research revealed the average sticker price median household income is almost the same as it was 20
Wto attend an in-state college is about 73% less years ago.
than the full rate charged by
private college. C h o i c e o f c o l l e g e
contributes to affordability.
THE AVERAGE COLLEGE According to the recent
tuition cost among public 2019 Sallie Mae survey How
and private institutions America Pays for College,
keeps increasing at a slow m o s t f a m i l i e s w e i g h
and steady pace each year. financial concerns more
heavily than academic
A college's sticker price is needs when selecting a
the amount advertised as college: Nearly 8 in 10
the full rate for tuition and families say cost governs
fees before financial need, decision-making.
scholarships and other aid
are factored. Net price is the The average tuition and
amount that a family pays fees at an in-state public
after aid and scholarships – usually offsetting the sticker college is about 73% less than the average sticker price at
price shock. a private college, at $10,116 for the 2019-2020 year
compared with $36,801, respectively, U.S. News data
Prices at most ranked colleges, including public ones, shows. Among ranked private colleges, 120 charge sticker
increased for the 2019-2020 school year, according to prices of at least $50,000 for the current academic year,
data submitted to U.S. News in an annual survey. The according to tuition and fees data reported to U.S. News
average price for in-state tuition and fees at ranked public by 785 private institutions. Only a few ranked private
schools rose by 4%, and the average out-of-state price colleges and universities – 61 – list a full rate price of less
increased by the same percent. Similar to previous year- than $20,000 for 2019-2020.
over-year increases, the average tuition and fees at private
colleges climbed 3%. We all know that tuition will continue to rise in the years to
come. What can students and parents do? Simply prepare
But the amount students pay, even when grant aid and tax for one on all of the following:
benefits are factored in, isn't keeping pace with rising
sticker prices, higher education analysts say. Students also Ÿ Scholarships Academics
have to pay for other expenses, such as housing, food and Ÿ Grants
books, which can run thousands of dollars a year. Ÿ 529 Plans
Ÿ Buying Real Estate
Seemingly small increases can add up over decades, Ÿ Athletics Scholarships
especially with several years of static or declining wages.

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