College costs have increased more dramatically than the rate of inflation. When a single child’s college education can cost over $350,000, paying for college is a stretch, even for many affluent families. Here’s an overview of what you need to know about college costs.
What Does College Cost?
It is surprisingly difficult to give a single answer to that question. It depends on the type of college and the amount of merit scholarships and financial aid an individual student receives
According to the College Board, Trends in Pricing here are the average published 2024-2025 costs for tuition and fees:
• Public Two Year: $20,870
• Public Four Year In-State: $27,330
• Public Four Year Out of State: $44,150
• Private Four Year: $55,800
As you consider college costs, remember that there is more than tuition to consider. Families must also budget for room, board, fees, books, living expenses, and transportation. At many public universities in-state, the cost of room and board may be as much, or even more, than the cost of tuition.
Costs vary widely. Here are some examples of the full cost of attendance, including room and board.
University of Washington, out of state: $65,541
Princeton University: $80,410
University of Minnesota, out of state: $59,944
Pomona: $89,412
Johns Hopkins: $88,900
UCLA, in state: $42,059
University of Iowa, out of state: $51,000
Cornell University: $92,150
Vanderbilt University: $92,150
Michigan State, in-state: $29,090
Most Don’t Pay Sticker Price
Like with car shopping, most families do not end up paying the full “sticker price” for college. The price you pay, also called the net price, may be lower due to merit scholarships and financial aid. Merit scholarships recognize a student’s academic accomplishments or in areas such as community service, arts, and sports. Merit scholarships do not consider financial need. Families seeking to maximize the merit aid their students receive should plan during high school, paying attention to academic performance, testing, and developing extracurricular interests. Students hoping for merit scholarships should pay special attention to the college list with the understanding not all colleges offer merit scholarships.
Families often fail to guess their eligibility for financial aid accurately. Middle-class families are typically upset when they find out they qualify for less than expected. Some upper-middle class families who assume they are ineligible may be surprised to find out their student receives some aid if they choose a higher-cost private school.
Research – Net Price Calculators
Instead of guessing your eligibility, the best approach is to research aid options and understand your family’s potential eligibility. Net Price Calculators are a place to start. This tool is available on every college website in the financial aid section. In order to receive an estimate of your cost, you will be asked to complete a brief survey with basic information about your income and your student’s academic profile. While these are just estimates and your actual award may differ, this is a good starting point for understanding your potential cost at different types of schools.
Avoid the Senior Year Fiasco
Understandably, many parents feel uncomfortable talking about finances with their children. They may not want to stress out their teens, or they prefer to believe that one way or another will work out. This approach can be problematic for many reasons. Far too often, it ends with a bad situation senior year. Teens may assume that as long as they get into a particular college, their parents will be willing and able to finance it. So, students may get their hearts set on an unrealistic choice, and when the offers come in the spring of senior year, they have to face reality. This problem can be avoided by open conversations and a realistic look at the options earlier in the process.
Talk Early in High School
Many teens benefit from hearing early in high school that their choices will make a difference in college options. A motivated high school student who commits to very seriously studying for the ACT or SAT, getting good grades, and applying for scholarships can often shave thousands of dollars off the price of college. It may help your student to think of this as a potentially very lucrative job that may end up paying hundreds of dollars an hour. Talking early about your expectations allows students to plan.
Graduation Rates Make a Big Difference in Costs
Parents may not realize that just over half of students who begin college ever graduate. Those who do graduate are often taking more than four years. Delayed graduation is such a trend that education analysts speak primarily about the six-year graduation rate, as though we’ve all just accepted college now takes six years. As you consider college options, one factor is the graduation rate and typical time to graduation. The price of four years at a private college with a higher four-year graduation rate may be less than six years at a lower-cost state university, where graduation more often takes five or six years.