If you’ve spent a few nights worrying about how to pay for college you’re not alone. The cost of college is a major concern for most families with good reason as it is increasing at a faster rate than inflation. According to the College Board, between 2011-12 and 2021-22, published in-state tuition and fees at public four-year institutions increased by 9%, in inflation-adjusted dollars.
Average Rates of Growth of Published Charges by Decade
SOURCE: College Board, Trends in College Pricing 2021, November 2021.
Current College Costs
You can get an idea of how much to shoot for based upon the current costs of college and adjusting for cost inflation. Using 2021 tuition, fees, and living costs, Collegetuitioncompare.com compiled a national database of total costs for colleges and different types of schools by state. Their data sources include: IPEDS (Integrated Postsecondary Education Data System) and the OPE (U.S. Department of Education – Office of Postsecondary Education). SOURCE: Collegetuitioncompare.com, 2021.
| Tuition | Living Costs | |||||
|---|---|---|---|---|---|---|
| Public | Private | On-Campus | Off-Campus | |||
| State | Number of Schools | In-State | Out-of-State | |||
Average |
$6,505 | $13,633 | $24,513 | $13,914 | $14,471 | |
Check out the costs for states or U.S. territories that you may be interested in. Select a location from the drop-down menu:
| Tuition | Living Costs | |||||
|---|---|---|---|---|---|---|
| Public | Private | On-Campus | Off-Campus | |||
| State | Number of Schools | In-State | Out-of-State | |||
| Minnesota | 122 | $6,980 | $8,818 | $30,116 | $12,047 | $13,152 |
Use Time to Help Reach Your College Savings Goals
Although saving for college might feel unattainable, like any major financial goal, it’s much easier to potentially achieve over time. In fact, time is one of your most valuable assets when it comes to saving for college. The more you invest and the earlier you start, the more opportunity your money has to grow.
This chart assumes a $5,000 lump sum investment, a $100 monthly investment and 6% annual rate of return. The calculations are for illustrative purposes only and the results are not indicative of the performance of any investments. The calculations do not reflect any plan fees or charges that may apply. If such fees or charges were taken into account, returns would have been lower. With any long-term investment, investment return may vary. Such automatic investment plans do not assure a profit or protect against losses in declining markets. This chart is for illustrative purposes only. Account value in the Investment Options is not guaranteed, and will fluctuate with market conditions.
If you don’t have an opportunity to save early, don’t despair. There’s no such thing as too late to start. Even if your child is starting college in two years, the way the Minnesota College Savings Plan works you could still have up to six years of account growth before your child graduates. And small amounts can make a difference. Every dollar that’s saved upfront is equal to more than two dollars needed to repay student debt over the life of a 25 year loan.
Remember, you don’t need to go it alone. Think about the grandparents, aunts and uncles, and close friends who give your child gifts. Tell them you’ve opened a 529 college savings plan and ask if they would be willing to give the gift of an education by contributing to the account on holidays and birthdays.
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