College Tuition Costs

The cost to attend college continues to rise faster than inflation. For the 2007-2008 school year, average tuition and fees at public four-year colleges or universities rose 6.6 percent to $6,185, according to the College Board report, "Trends in College Pricing 2007".

For private four-year colleges and universities, average tuition costs rose 6.3% over the year earlier, to $23,712. If you add the cost of room and board, the average bill at public institutions rose 5.9% to $13,589. For private institutions, the combined bill rose 5.9% to $32,307. (Note: all data are weighted for enrollment statistics.)

The trend of college costs growing faster than overall prices is also a long-term one. Adjusted for inflation, tuition costs at public colleges have grown 31% over the past five years, according to the College Board. (Tuition increases at private schools have outgrown inflation by 14% over the last five years.)

With increasing costs like these, saving for a child's college education is a daunting challenge. However, choosing to not attend college has graver consequences. On average, a person with a college degree earns in excess of $1 million over his or her lifetime more than a high school graduate, the College Board estimates.

Several alternatives exist to pay for a college education, whether it is an education for your child, grandchild, or yourself. In addition, the Economic Growth and Tax Relief Reconciliation Act of 2001 expanded college-savings incentives.

The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax adviser.