College costs can be a significant financial obligation for many families. Between tuition (the cost of classes), room, board, and books, costs can add up quickly. That is why it is important to understand your needs in advance and plan accordingly. In the Plan for Education Costs life event, we help you estimate the expected educational costs for your dependents who are planning to attend college.
When adding this life event to your timeline, you are first prompted to enter your dependent’s anticipated school start date and end date. You are then asked to select between a public or private college. If you select public, you will be able to specify whether the institution is in-state or out-of-state. We calculate the estimated tuition costs using current year national averages for each of these combinations. As of May 2021, the average annual tuition for in-state public colleges, out-of-state public colleges and private colleges are $9,580, $27,437 and $37,200, respectively. You can also enter an estimated financial aid package and a total estimated room, board, and book cost.
The total expected education costs equal the annual tuition multiplied by number of years minus total financial aid plus total room, board, and books costs.
If you manually enter your own college cost amount, your estimates replace the default estimates from My Financial Plan.
Based on the information you provide, we evaluate the feasibility of affording these education costs given your current financial plan. You can also create a savings goal to work towards future education expenses.