A college education is more important than ever ...
The dream of almost every parent, grandparent, or relative is to see the children in their lives find successful, rewarding careers. It's no secret that a college education can help expand your children's horizons and increase their earning power.
... and college costs keep rising ...
While having a college education is more important than ever, the costs of obtaining one can be staggering. Over the past 20 years, college costs have substantially outpaced the overall rate of inflation, and this pattern is expected to continue. For many families, college will be their second biggest long-term savings goal, other than saving for retirement.
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| Chart is based on costs of four years of tuition, plus room and board and other costs, not all of which are qualified
higher education expenses under Section 529, and assumes an inflation rate of 5.2 percent. Average Student
Expenses, National Region, 2001-2002, provided by The College Board, 2001. |
If the child in your life is a newborn right now, by the time he or she heads off to college in 2021, it could cost:
... but the investment in college still pays off.
Although education expenses are high, investing in a college education pays off. Recent studies show that employees with bachelor's degrees earn, on average, 85 percent more than those with just a high school diploma. This earnings gap is tremendous and can be as much as $1 million over a lifetime.
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| Source: The College Board, 2001. |
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