College is expensive, but planning ahead can make
a difference

For the 2008-2009 academic year, tuition and fees rose close to 6% for a private four-year college and almost 6.5% for a public in-state four-year school over last year. In fact, one-year tuition and fees averaged about $6,585 per year for four-year public in-state colleges and universities and $25,143 per year for four-year private colleges and universities. And that doesn't include costs like room and board and textbooks.1

Here is an estimate of what a college education might cost (including tuition, fees, and room and board) in the years ahead; how many years do you have until your student is ready for college?

Future tuition cost estimate for both public and private in-state and out-of-state colleges 



























The sooner you start, the better
Just remember that college may be expensive, but if you plan ahead it doesn't have to be out of reach. What's most important is to start saving right now - it's never too early or too late.

  • Consider enrolling in a 529 plan and keep the contributions flowing. Regular investments can potentially add up to a college nest egg over time.2
  • Put your plan on auto-pilot with an Automatic Investment Plan (AIP) or regular payroll deduction.2

Here's a hypothetical example of how saving over time can help:

  • When she is born, Jane's parents invest $50 a month into a 529 plan account.
  • By the time Jane is 18 and ready for college, the 529 plan account could have $23,104 (based on historical market returns of 7%).3
  • If Jane had to borrow that amount instead, (assuming a private student loan rate of 8%), she could be faced with a $207 payment every month for 15 years!3

Borrowing versus saving
According to 2008 College Board numbers, the average student in America graduates college with $22,700 in student loans. But saving even a little can beat borrowing. While most families combine some level of savings and borrowing when paying for college, putting aside money early and often is a proven way for you to help build your savings.



1 The College Board, "Trends in College Pricing," 2008.
2 A plan of regular investment cannot assure a profit or protect against a loss in a declining market.
3 This hypothetical illustration does not represent the return on any particular investment.