How much will a college education cost in 2030_two parents carrying their young child

How much will college cost in 2030?

It’s no secret that college tuition is one of life’s biggest expenses, but today’s costs could look small compared to those of tomorrow. According to the National Center for Education Statistics, the cost of a four-year education at public institutions rose 34 percent between 2006 and 2016.

How much will college cost in 18 years?

A look at the cost of a college education over the past six decades shows a clear upward trend. Here are a few examples—using 2018 dollars—of the average cost of a year’s tuition at a four-year public institution from the U.S. Department of Education:

  • 1968-1969: $10,750
  • 1978-1979: $10,560
  • 1988-1989: $13,769
  • 1998-1999: $17,927
  • 2008-2009: $23,536
  • 2017-2018: $27,357

Students paying out-of-state tuition tend to pay about double the in-state tuition, and private colleges can be even more expensive. In 2019, a year of tuition at a private institution averages $50,900, or $203,000 for four years. Graduate programs can further increase the total cost of education, with the average two-year master’s degree costing between $60,000 and $80,000 according to education company Peterson’s.

It’s important to note that tuition is just one expense among many. For example, industry research indicates that the average student spends $1,250 on textbooks annually. Transportation, room and board, application fees and on-campus service fees can mount quickly.

Although this news can be discouraging for many parents with children of all ages, any progress you can make toward your savings goal is good progress. It’s important to remember that if you’re proactive in your savings approach, you may be in a much better position to help your child pay for their college education. Just getting started? Consider a high-yield OnPoint Savers Account. Once you’re receiving the full benefit of your OnPoint Savers Account, here are two more college savings strategies that may fit your needs.

How much will a college education cost in 2030_two parents carrying their young child

College savings options.

At the current growth rate, a child born in 2019 could need as much as $500,000 to attend college in 18 years. Parents should look into savings options now to ensure their little ones are prepared for the future. It’s also good to know whether you’re utilizing an insured savings option, like a certificate of deposit, or an uninsured investment option, like a 529 college savings plan.

529 college savings plan.*

One of the most popular vehicles for saving for college is the 529 plan. The 529 college savings plan allows parents to invest after-tax money into low-cost, diversified stock and bond funds with the ability to withdraw the money tax-free for qualified education expenses.

The student’s parents own this asset and can change the beneficiary at any time. The funds can be used for two- or four-year degrees at accredited colleges. The Tax Cuts and Jobs Act of 2017 also made it possible for parents to use their 529 funds to pay for a private high school.

Other savings options.

As with all investments, 529 plans carry some risk—the funds are not guaranteed to hold or gain value—there are, however, more secure savings options. A standard savings account or a certificate of deposit can offer some interest, can be used for any type of expense, and may be NCUA insured up to $250,000—although they do not have as high a potential return as investment options.

Make sure you understand all of your savings options before you decide on your next step. To learn more, check out our resource center today or visit your local OnPoint branch.


Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. OnPoint Community Credit Union and OnPoint Investment Services are not registered broker/dealers or registered investment advisers, and are independent of Raymond James Financial Services, Inc. and Raymond James Financial Services Advisors, Inc.

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Not insured by any federal government agency

[hidden_text]Not a bank or credit union deposit, obligation or guarantee[/hidden_text]

Not a bank or credit union deposit, obligation or guarantee.

[hidden_text]May lose value[/hidden_text]

May lose value.

[hidden_text]Not FDIC or NCUA/NCUSIF Insured[/hidden_text]

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[hidden_text]Not insured by any federal government agency[/hidden_text]

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Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.

Any opinions are those of OnPoint and not necessarily those of Raymond James.  Expressions of opinion are as of this date and are subject to change without notice.  There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.  Investing involves risk and you may incur a profit or loss regardless of strategy selected.

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*Rules and laws governing 529 plans are varied and subject to change. As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also a risk that these plans may lose money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. Investors should consider, before investing, whether the investor’s or the designated beneficiary’s home state offers any tax or other benefits that are only available for investment in such state’s 529 college savings plan. Such benefits include financial aid, scholarship funds, and protection from creditors. The tax implications can vary significantly from state to state. Tax-free withdrawals may be made for qualified education expenses.  Otherwise, the deferred earnings portion may be subject to taxes and a 10% penalty. Please consult a qualified tax professional to discuss tax matters. Certain changes in beneficiary may result in a taxable event.


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