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Home > Planning For > College > College Costs
When we think about the biggest purchases we make
in our lives, buying a home or a new car is what comes to mind. Then we
need to add the paying for a college education.
The cost continues to rise dramatically, far beyond the standard rate of inflation. If you think the rapid price
of gas in recent months was a burden, it pales by comparison. The following table shows that the average
cost for tuition and fees at public and private colleges has outpaced the rate of inflation.
| Year |
Actual Average Public School Cost |
Comparable Cost based on CPI |
Actual Average Private School Cost |
Comparable Cost Based on CPI |
| 1971 |
$376 |
$376 |
$1,820 |
$1,820 |
| 1981 |
$433 |
$860 |
$3,617 |
$4,163 |
| 1991 |
$2,137 |
$1,262 |
$10,017 |
$6,107 |
| 2001 |
$3,510 |
$1,582 |
$16,332 |
$7,657 |
During the 1970s, when inflation as a whole was high, college costs actually rose at a slower pace than the overall cost of living. But since then, tuition and fees have risen dramatically.
Still, the investment can be worthwhile. According to the College Board, the average individual who receives
a Bachelor’s degree will earn $1,000,000 more during his or her lifetime than will the average high school
graduate.
Content is for informational purposes only and may not accurately reflect your specific situation. Information is not intended to provide financial, legal, tax, or accounting advice. You should consult a qualified advisor for advice specific to your own circumstances.
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