College expenses are the money you spend on college education for your family. You may need to dip into your savings to pay for college. This could delay retirement or other financial goals.
- Consider when your child will actually start college
You can generally assume that most children will begin college in the month of September when they are 18 years of age.
- Determine what type of institution your child will attend
This is to assist you with estimating costs. Private colleges are generally more expensive than public colleges. Small colleges are generally more expensive than large institutions.
- Determine where your child will go to college
If the school is a considerable distance from home, you will need to factor in nonresident fees, some additional plane tickets for the holidays, and, of course, living expenses.
- Estimate the cost in today's dollars
In other words, if your son left for college today how much would it cost for him to attend? How much of that cost would you be able to provide? The University of Pennsylvania, in a recent study, estimated that students and parents provide roughly half of the total annual cost of attending the college. Loans, grants and scholarships provide the remainder. You can estimate higher to be more conservative.
- Determine the length of time your child will actually spend in college
Four years is the norm, but some students will graduate in three years (by attending classes during the summer term). Many students attend over five years because they work part-time and cannot carry a full course load.