How much does college cost?
Starting college is an exciting milestone in life and one that many young adults look forward to. If you’re getting ready to send your child off to school, you’re likely thinking about how to meet the financial commitments of a college education. One of the best ways to prepare is to understand the overall cost of college and the factors that affect it. According to College Board, the average annual tuition for public, four-year colleges during the 2021-2022 school year was $10,740 for state residents and $27,560 for out-of-state residents. And, annual room and board expenses added an average of $11,950 to the overall cost of college.One way to feel more secure about the financial obligations of your child’s college education is to purchase life insurance, because those benefits can cover school-related expenses if you pass away. In this article, we’ll go over the costs of attending college, how they’ve changed over the years and how life insurance can offer a financial safety net, so you can plan for your child’s future with confidence.
What is the average college tuition?
If you’re planning for your child’s future education, a great place to start is by evaluating the average tuition cost. The National Center for Education Statistics (NCES)1 estimated that the average cost of tuition for the 2020-2021 school year was roughly $19,000. However, the cost varies greatly by school type, such as public in-state, public out-of-state, private non-profit or private for-profit. Tuition will also depend on whether the school is a two- or four-year school. Best Colleges estimated that the average tuition cost by school type for the 2020-2021 school year was:
Four-year public: $9,375
Four-year private nonprofit: $35,852
Four-year private for-profit: $15,442
Two-year public: $3,501
Two-year private nonprofit: $16,420
Two-year private for-profit: $15,080
Keep in mind that some schools offer more tuition assistance than others, so while the average cost may be higher, the actual price a student pays may be much lower due to financial aid. The NCES1 estimates that over 85% of students receive some form of financial aid.
How much has the cost of college increased over time?
Parents with college-age students may be surprised to learn just how much the cost of college has increased over time. And it isn’t just tuition that has risen, but additional costs like books, supplies and room and board as well. Without accounting for inflation, US News reports that in the last 20 years:
Out-of-state tuition and fees at public universities have risen 141%
Tuition and fees at private universities have jumped 134%
In-state tuition and fees at public universities have grown the most, increasing 175%.
After adjusting for inflation, Education Data reports that college tuition has increased 747.8% since 1963. This has made the prospect of attending college more difficult for some, with 77% of adults saying a college degree would be difficult for them to afford. One way to prepare for the rising cost of college is to have the right life insurance coverage, so you can have peace of mind that your child’s education will be provided for if you pass away.
What is the average cost of college by state?
The cost of college varies state-by-state and year-by-year. Typically, the cost is highest among schools in the Northeast and lowest among schools in the South and Plains regions. According to Education Data,
Vermont has the highest average yearly in-state tuition of $17,083 at public institutions
Florida has the lowest average yearly in-state tuition of $4,463 at public institutions
Massachusetts has the highest average yearly tuition of $47,980 for private institutions
Keep in mind that these figures only account for in-state tuition, with the cost for out-of-state residents varying significantly by state as well.
How much does room and board cost?
Housing and living expenses are two of the many considerations new college students have to think about when choosing a school. The cost of room and board depends on several factors, including location, institution type and whether the student lives on or off campus. Best Colleges reports that students spent an average of $9,300-$13,620 on room and board for the 2021-2022 school year, depending on their institution type. Keep in mind that room and board costs include not only the cost of rent or dorm housing, but also meal plans, utilities and internet.
What additional expenses do college students have?
Besides tuition and room and board, college students have additional expenses like textbooks and supplies, technology and electronics and transportation costs. At the start of the 2022 school year, USA Today reported that back-to-school college spending averaged at nearly $1,200 per household. Deloitte also reported that those shopping for college would increase their spend on technology by 22% for the 2022 school year.When evaluating the extra costs of college, you should also consider extracurricular activities. A fulfilling social life is one of the many benefits of the college experience, but it often comes with additional expenses like club fees, Greek Life dues and even study abroad.
Looking to prepare for your child’s future education? Let SelectQuote help you find the financial security you need.
Sending your child off to college is a great accomplishment, but it does come with significant expenses. Having life insurance can ensure financial security to provide for your loved ones’ college education if you pass away. Our SelectQuote licensed insurance agents are here to answer any questions you have about life insurance coverage and college expenses. We search multiple highly trusted carriers in just minutes, so you can focus your time on planning and preparing for your child’s college education.
1. https://content.naic.org/article/learn-how-use-naic-life-insurance-policy-locator
