College costs for kids today are ridiculous and unaffordable for most people.
We are in this together. I have three children ages 14,13 and 11 that are planning on attending four-year colleges as of now. The future costs could be close to $500,000 depending on what schools they attend!!!! Take a look at my College Saving Planner Video to get a gauge on where your plan stands today. Online college calculator
College costs skyrocketed out of control when student loans became more readily available with very few restrictions to the amount that could be borrowed. Colleges took full advantage of this and keep raising prices knowing the demand won’t go away as people continue to borrow whatever they needed to try to get a degree. People are borrowing amazingly high amounts of money in part because the pain from huge student debt is not felt until years later when the debt needs to be repaid. Sky Rocketing College Costs
Savings Shortfall Possible Explanations:
- Keeping up with the Jones’ is expensive
- The lost decade of investment returns and historically low-interest rates
- Late start saving
- Bonuses cut or eliminated
- “Promotions” often in title only
- We never saw our parents save much for our college (it wasn’t nearly as relatively expensive when we were growing up)
When you consider our horrible economy with little reason for turnaround any time soon it’s no wonder many parents are stressed over the thought of how they will afford college for their kids.
To make matters worse, college costs have been skyrocketing and the return on a college investment has never been lower as many kids with college degrees cannot find work. I do not want to imagine them living with my wife and I for years after they are done with school searching for work while trying to pay off student loans when I am focusing on retirement savings.
- Step up your college savings – the sooner the better (I suggest having money pulled from your checking account each month)
- Look into more affordable alternatives – 2-year schools, online courses or maybe consider trade schools
If you decide to step up your college savings program, keep in mind that contributions made to an IL 529 College Savings Plan are IL tax-deductible up to $20,000 per year. Contributions need to be received prior to 12/31.