PPT Slide
Over the past 20 years, costs associated with higher education have grown at more than twice the rate of inflation.
Sources: Chronicle of Higher Education, 1998; Digest of Education Statistics 1996; U.S. Dept. of Labor, Bureau of Labor Statistics
Notes:
But college has also become more expensive over the years.
The dilemma parents face is that the cost of college is rising at a faster pace than inflation -- as much as 7% in some states. This chart shows the growth in education expenses over the past 20 years. You can see that the cost of attending a 4-year private college (point to red line) is rising at a far greater rate than inflation (point to black line). So how are you going to keep up?
Today there are several ways to pay for college. How do you think most Americans pay for college today? (pause to wait for responses)
The fact is, loan aid, which totaled more than $37 billion during the ‘98-’99 school year, has more than doubled (108%) during the past decade.”1 A heavy debt burden can affect your child’s choice of job, their ability to afford a first house, their decision to start a family… No one wants to saddle their child with debt. So, what are your choices for saving for college?
1 Source: Trends in Student Aid, The College Board, 1999