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What Exactly Am I Going to Pay for this Whole Thing?…And While We’re At It, What Am I Paying for Anyway?

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Get out your divining rod and Magic 8 Ball, because figuring out what your bill will be for college is about that in-exact a science. The truth is, there is a spectrum of options available to each student and family. And the number one rule is that whatever decision you make about the cost/benefit balance should conform to your own family’s values and no one else’s.  

Here are a few statistics for 2024:

  • Public Four-Year In-State: Approximately $10,662 per year (tuition and fees)
  • Public Four-Year Out-of-State: Approximately $23,630 per year (tuition and fees)
  • Private Four-Year: Approximately $42,162 per year (tuition and fees)
  • 2-year Institution: Approximately $4,481 per year (tuition and fees)

 

  • Public 4-year institutions:
  • On-campus: $12,302 annually
  • Off-campus: $11,983 annually
  • Private nonprofit 4-year institutions:
  • On-campus: $13,842 annually  
  • Off-campus: $10,876 annually
  • Private for-profit 4-year institutions:
  • On-campus: $9,151 annually
  • Off-campus: $9,564 annually
  • 2-year institutions:
  • On-campus: $7,717 annually
  • Off-campus: $10,738 annually

This gets you to a range between $24,396 to $205,252, per kid. And that’s for 2024. Historically, college costs have increased at a rate of 3-5% a year. So expect that amount to compound at least over four year at a rate of about 4% over those four years. To keep that 4% in perspective, government bond investors have been ecstatic to receive that kind of a return on their investments over the past few years as rates have gone up.

When assessing what you are actually paying for, the process is more nuanced. What are student’s goals? Their strengths? Their dreams? When you envision the best life for your family, how does that feel? What makes you sleep soundly at night? Knowing that you paid as little as possible for college? Or that you helped your kids complete the exact educational experience they deserve?