College Costs How Much?

Education costs a pretty penny, but it can be well worth it. Whether you’ve got kids in preschool or high school, it’s time to check out the facts and learn how to meet rising college costs.

What costs so much?

Worrying about college costs is common… and for good reason:

• The average total cost (including tuition, fees, room, and board) in 2023–24 was the following:

  • $28,840 at public four-year in-state institutions
  • $46,730 at public four-year out-of-state institutions
  • $60,420 at private nonprofit four-year institutions¹
• The average student loan debt for recent graduates is approximately $29,400.²
• Total U.S. student loan debt now exceeds $1.77 trillion.³
• Textbooks can cost between $1,200 and $1,400 annually for full-time undergraduate students.⁴
• Other costs include travel, extracurricular activities, technology, and personal expenses.

Why It’s Worth It

Despite the costs, a college education can still pay off:

• A bachelor’s degree holder earns about $1.2 million more over their lifetime than someone with only a high school diploma.⁵

That’s a compelling reason to plan ahead and think about investing in higher education.

Tips to Handle College Costs

• Start Saving Early: Consider a 529 Plan or Coverdell ESA to set aside money with tax advantages.
• Prioritize Grants and Scholarships: These don’t need to be paid back. You can use tools like Studentaid.gov to find aid.
• Understand Loan Options: Federal loans typically offer fixed rates and income-based repayment options. Private loans may carry higher, variable rates and less flexibility.
• Evaluate Other Funding Sources Carefully: Tapping into retirement accounts (like a 401(k)) or using home equity could have long-term consequences such as penalties, taxes, or reduced retirement income.

Tools to Estimate & Save

• The College Scorecard from the U.S. Department of Education can help you compare colleges by cost, financial aid, and outcomes: https://collegescorecard.ed.gov.

• The FINRA College Savings Calculator can help you determine how much you might need to save annually to meet your goals: https://tools.finra.org/savings_calculator/.

Let’s Make an Action Plan

College costs can be overwhelming, but you don’t have to face them alone. Talk to a Money Coach who specializes in college planning and student loans. Your coach can help you:

• Make a personalized action plan for savings
• Clarify federal vs. private loan options
• Discuss scholarship strategies and grant applications
• Ensure your college funding plan aligns with other financial goals

Schedule a coaching session today.

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¹ College Board. “Trends in College Pricing and Student Aid 2023.” https://research.collegeboard.org

² The Institute for College Access & Success. “Student Debt and the Class of 2022.” https://ticas.org

³ Federal Reserve Bank of New York. “Quarterly Report on Household Debt and Credit.” Q1 2024. https://www.newyorkfed.org

⁴ U.S. Bureau of Labor Statistics. “Back to School Spending and Student Costs.” https://www.bls.gov

⁵ U.S. Bureau of Labor Statistics. “Earnings and Unemployment Rates by Educational Attainment.” 2023. https://www.bls.gov/emp/chart-unemployment-earnings-education.htm

Information provided in this article is for informational purposes only and is not intended to offer specific personalized investment, financial planning, tax, legal, or accounting advice.  We recommend that you consult an attorney, tax advisor, or accountant regarding your unique circumstances. This content is for informational purposes only and does not guarantee eligibility for the program or its services.