How Much Do You Need to Save For College?

How much do you need to SAVE FOR COLLEGE? START SAVING NOW, BE PREPARED FOR RISING COSTS INCREASE IN AVERAGE PUBLISHED TUITION OVER THE PAST 10 YEARS Public Private 66% 27% AVERAGE 1-YEAR COSTS TO ATTEND UNIVERSITY FOR THE 2013-14 SCHOOL YEAR PUBLIC (IN-STATE TUITION) PRIVATE Total Cost 13-'14 $22,826 $44,750 $8,893 $30,094 Tuition $9,498 $10,823 Room & board $1,207 $1,253 Books & supplies $1,123 $990 Transportation $2,105 $1,590 Other PARENTS WANT THEIR CHILDREN TO GO TO COLLEGE AND THEY WANT TO HELP PAY FOR IT How important is it to you that your children receive a college degree? What percentage of your children's college education do you hope to save for? Very important CAt least half of parents hope to pay for 95% of parents say it is "Very Important" that their children receive a college degree 85% at least 50% of their children's college education HOW THE TYPICAL FAMILY PAID FOR COLLEGE IN 2013 5% 9% 30% Grants and Scholarships O Parent Income & Savings Student Borrowing 11% Student Income & Savings O Parent Borrowing O Relatives & Friends 18% -27% HOW MUCH WILL COLLEGE COST IN 18 YEARS? If costs rise at an average of 5% per year, the total cost of 4 years of college in 18 years could be: x 10 x 10 $237,000 $464,000 at a public university (paying at a private university in-state tuition) THE KEY TO BEING PREPARED AND REACHING YOUR SAVINGS GOALS IS TO SAVE EARLY AND OFTEN. VISIT SAVINGFORCOLLEGE.COM TO SEE THE WORLD'S SIMPLEST COLLEGE CALCULATOR AND MAKE YOUR OWN SAVINGS PLAN. Amount that can be saved over 18 years, at an annual average return of 6%, with different monthly contributions: Monthly Contribution $100 $50 Value of investment in 18 years %24 %24 %24 $47,000 $116,000 $230,000 EVERY YEAR YOU PROCRASTINATE CAN COST YOU THOUSANDS IN LOST INTEREST. START SAVING TODAY! Source: Presented by: College Board Advocacy & Policy Center, How Students and Parents Pay for College, March 2013 Savingforcollege.com Savingforcollege.com College Savings Survey, October 2013 Savingforcollege.com, www.savingforcollege.com/college-savings-calculator/index.php Sallie Mae, How America Pays for College 2013 www.savingforcollege.com