Key Points
College costs rise roughly 4-5% per year. A newborn today faces costs approximately 2.4-2.7x current prices by enrollment at age 18. Getting the inflation assumption right is critical to calculating your savings target accurately.
Projected annual college costs by school type and year
| School Type | 2025 Annual Cost | 2033 (8 yrs, 5% inflation) | 2043 (18 yrs, 5% inflation) |
|---|---|---|---|
| In-state public | $27,000 | $39,800 | $65,000 |
| Out-of-state public | $45,000 | $66,400 | $108,500 |
| Private non-profit | $60,000 | $88,500 | $144,600 |
| Top private | $90,000 | $132,800 | $216,900 |
| Community college | $10,000 | $14,800 | $24,100 |
College tuition has averaged 4-6% annual increases over 30 years -- consistently above general inflation. Use 5% as your base assumption and also run 4% and 6% scenarios to see the range.
What This Means for You
- Total 4-year cost = 4 annual costs that each also inflate during enrollment years
- Use net price calculators at specific colleges for personalized cost estimates
- Merit scholarships can dramatically reduce private school costs -- research merit-generous schools
- Living at home while attending saves $15,000-$20,000 per year on room and board
- The choice between in-state vs out-of-state vs private is the biggest cost variable
Calculate Your College Savings
Use the college savings calculator to determine exactly how much you need to save monthly based on your child’s age, target school type, and desired coverage percentage.
Calculate Your College Savings Goal
Enter your child’s age and target school to see your personalized monthly savings plan.