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How Much Does College Cost?

Core Facts


Wednesday, August 8, 2018

As parents, we all want our kids to have the best chance in life. The facts are undeniably in favor of college graduates in today’s modern world. [3] According to research by Georgetown University’s Center on Education and the Workforce, the lifetime earnings for college graduates are most definitely higher than the amount earned by non-graduates.

Their research revealed a shocking trend: In 1973, it was not common for a job to require a college education. In fact, just 28 percent of jobs required a college degree. In 2018, they expect the number to be 63 percent.

And you’ll be looking at a significant outlay every year they’re in attendance, even if it’s a local school.  If they choose to go to school out of state, the fees go up.

There are, of course, many different types of colleges, and each type will vary in their fees. When you factor in all the similar schools plus all the extra costs like their room, board, books, supplies, a laptop computer, and some sort of transportation, it’s possible to calculate what you might expect to pay every year.

According to research by LendEDU, the latest average cost-of-attendance varies between school types. Including tuition, fees, and any other expenses, the cost of an education at a not-for-profit private institution is around $50,900 per annum. If you send your kids to an out-of-state public college for four years, you can expect to be shelling out around $40,000 per year. This figure also includes tuition, fees, and any other expenses.

Compare that to an in-state public college which, all in, will cost you an average of just $25,290 a year for four years. If your child goes to an in-district public college and studies for two years, your total average cost is around $17,580 a year.    

Finding out how much you’re going to require for the college of your choice may not be easy, especially if you are starting to save early. An education planning calculator can give you an idea of what to aim for. Your final decision will depend on the type of college you envision as part of your child’s life journey and experience.

Saving might not be enough due to the high costs associated with sending your kids to college. According to a survey of parents who are planning on sending their offspring to college, around 20% plan to rely on student loans.

The fact that college costs can be so prohibitive while the workforce is expected to have some sort of college education, is putting a strain on the young professionals of tomorrow. Talk to a financial advisor about college costs and college saving plans, so that your children don’t get saddled with crippling student loans.

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.

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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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