Are you Thinking About Saving for College? Important Aspects You Should Know About College Savings Plans
The prices for a quality college education keep on rising in the United States. However, the incomes are not rising as fast. Only those in the upper strata of social hierarchy can even think of attending college and paying the fees without much fuss. Those from the lower or middle classes need a proper strategy for college savings plans. It is recommended that you start on these plans for your children early. So, when the time comes, your children can get higher education without worrying for money.
What is the True Cost of College?
Before thinking of college savings plans, you must have an idea of costs. The U.S. Govt requires all colleges and universities to publish their annual cost of attendance. This includes tuition, various fees, supplies, transportation and personal expenses. The latest calculations estimate the net cost of colleges in USA are as follows;
- Public Four Year: $21,950
- Private Non-Profit Four Year: $49,870
If you account for grant aid and tax benefits, the totals come down somewhere like this;
- Public Four Year: $15,380
- Private Non-Profit Four Year: $27,370