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College Degree Could Cost $500,000 in 18 Years

Use This Calculator to See If You Can Afford Life After College

Use This Calculator to See If You Can Afford Life After College

In 18 years, a college degree could cost about $500,000 according to an article in BuzzFeed.

“People worried about college affordability today can at least take this to heart: it could get much, much worse.

Tuition has been rising by about 6% annually, according to investment management company Vanguard. At this rate, when babies born today are turning 18, a year of higher education at a private school — including tuition, fees, and room and board — will cost more than $120,000, Vanguard said. Public colleges could average out to $54,000 a year.

That means without financial aid, the sticker price of a four-year college degree for children born today could reach half a million dollars at private schools, and a quarter million at public ones. That’s for a family with one kid; those with more could be facing a bill that reaches seven figures.”

How much does college cost per year in the future?

Source: Source: The College Board, “Trends in College Pricing,” 2014 from Vanguard

With the price tag of $500,000 for a college education, it might make sense to invest the money into a moderately aggressive portfolio at the age of 18 that makes you extremely wealthy by retirement age. Why waste half a million on a college education that may or may not get you a job. At this rate, college tuition cannot continue to increase forever. In another words, 4% real increases in college costs cannot continue indefinitely.

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