Presented by: Vision Financial Group, Inc.
Each year, the College Board releases its annual “Trends in College Pricing” report that highlights current college costs and trends. While costs can vary significantly depending on the region and college, the College Board publishes average cost figures, which are based on a survey of nearly 4,000 colleges across the country.
The following are cost highlights for the 2019-2020 academic year. Note that “total cost of attendance” figures include direct billed costs for tuition, fees, room and board, plus a sum for indirect costs that includes books, transportation, and personal expenses, which will vary by student.
Public College Costs (In-State Students)
- Tuition and fees increased 2.3% to $10,440
- Room and board increased 2.9% to $11,510
- Total cost of attendance: $26,590
Public College Costs (Out-of-State Students)
- Tuition and fees increased 2.4% to $26,820
- Room and board increased to 2.9% to $11,510
- Total cost of attendance: $42,970
Private College Costs
- Tuition and fees increased 3.4% to $36,880
- Room and board increased 3.0% to $12,990
- Total cost of attendance: $53,980
Reminder on FAFSA timeline. Families were able to begin filing the 2020-2021 FAFSA on October 1, 2019. The earlier timeline was instituted a few years ago to better align the financial aid process with the college admissions process and to give parents information about their child’s aid eligibility earlier in the process. The 2020-2021 FAFSA relies on income information from your 2018 federal income tax return and current asset information. Your income is the biggest factor in determining financial aid eligibility. A detailed analysis of the federal aid formula is beyond the scope of this article, but here’s how it generally works:
- Parent income is counted up to 47%
- Student income is counted at 50% over a certain amount ($6,840 for the 2020-2021 academic year)
- Parent assets are counted at 5.64% (home equity, retirement accounts, cash value life insurance, and annuities are excluded)
- Student assets are counted at 20%
The result is a figure known as your expected family contribution, or EFC. Your EFC remains constant, no matter which college your child attends.
Vision Financial Group, Inc.
4505 Pine Tree Circle
Birmingham, AL 35243
Investment Advisory Services offered through Investment Advisors, a division of ProEquities, Inc., a Registered Investment Advisor. Securities offered through ProEquities, Inc., a registered broker-dealer and member of FINRA & SIPC. Vision Financial Group, Inc. is independent of ProEquities, Inc. This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party nor their affiliates.