I’ll be graduating soon. I can’t believe that four years have gone by, just like that. Mom can believe it, though. Especially because she can finally stop writing the $3,000 tuition checks every month.
A couple years ago my college’s tuition+room/board+expected miscellaneous expenses broke the $40,000 mark. Add in book money and plane tickets home, a student (not on financial aid) can easily pay over $45,000. In ONE year. I was fortunate to get some financial aid and took out student loans, but even so. At $160,000+ for four years of school, my parents probably paid around $110,000.
That’s the best (and most expensive) gift they’ve given me. There’s a lot of debate on if parents should pay for their children’s college education, and obviously it’s an issue that depends on the family’s situation and values. So, there are no one-size-fits-all solutions.
Well, knowing what Mom did for me, I want to do the same for my future kid. At the very least, I’d want to have three years of private school education expenses saved up. But that’s going to be a tall task.
According to Sallie Mae’s College Cost Calculator, the current $40,000/year tuition (or $160,000 for 4 years) will balloon to an astounding $1,031,373 in 26 years, assuming 7% annual cost increase. The cost of attending four years of private school will exceed $1 million dollars. I know that $1 million in 26 years won’t be worth as much as now, but it’s still a whole lot of money!
Good thing I won’t have to worry about paying for someone else’s college expenses for a LONG time.