What You Need to Know About the Cost of College
The cost of higher education has been rising steadily for decades. Today, tuition, room, board, and fees at many of the top 50 colleges and universities in the country exceed $50,000 per year — and that number continues to climb.
Planning ahead is one of the most powerful things a family can do to get ahead of these costs. The earlier you start, the more options you have.
The Student Debt Crisis Is Real — And Growing
Total student loan debt in the United States is approaching $1.6 trillion, with projections suggesting it could reach $2 trillion by 2021 and $3 trillion by 2030.¹ ² These numbers reflect a system under enormous pressure — and a growing urgency for families to plan proactively rather than rely entirely on borrowing.
¹ "Education Planning: A Look at the Numbers," InvestmentNews (Blog), September 1, 2018.
² Daniel M. Johnson, "What Will It Take to Solve the Student Loan Crisis?," Harvard Business Review, September 23, 2019.
$50,000+
per year at many top 50 colleges and universities — tuition, room, board, and fees combined.
$1.6 Trillion
in total U.S. student loan debt and growing — making early planning more important than ever.
1/3 — 1/3 — 1/3
Save a third, pursue aid for a third, and borrow a third — one framework for approaching college costs.
One Strategy: The One-Third Model
One approach many families consider is the one-third model: plan to save one-third of the projected cost, pursue financial aid and scholarships for one-third, and borrow the remaining one-third if necessary. This is just one strategy among many, and the right approach will depend on your family's unique situation, timeline, and goals.