College Funding
Helping make college dreams a reality
College Funding
Helping make college dreams a reality
Funding Your College Dreams Starts with Planning
Although the cost of higher education continues to outpace inflation, many families still consider college funding a top priority. Rising tuition and expenses emphasize the importance of getting an early start on college planning. Benefits of planning include:
- Develop realistic college funding goals
- Explore savings options
- Identify scholarships and financial aid
Ultimately, an early start alleviates stress and empowers families to make well-informed financial decisions, which may have a lasting impact financially for both parents and their children.
A financial professional can help assess your financial situation today, build a college savings plan, and determine the cost to send your child(ren) to college.
The Cost of Higher Education
The cost of earning a college degree continues to rise, making early planning more important than ever. Below are the average annual published costs for attending a four-year college in the United States during the 2024–2025 academic year, according to College Board. These estimates include tuition, fees, housing, and food (room and board) before grants, scholarships, or financial aid are applied.
Keep in mind these figures do not include books and supplies, transportation, personal expenses, health insurance, student loan interest, or the opportunity cost of lost income while attending school. As a result, the total cost of earning a bachelor’s degree can be significantly higher than the figures shown below.
|
Institution Type
|
One-Year Cost
|
Est. 4-Year Cost
|
|---|---|---|
|
4-Year Public (In-State)
|
$29,900
|
$119,600
|
|
4-Year Public (Out-of-State)
|
$49,100
|
$196,400
|
|
4-Year Private Non-Profit
|
$63,000
|
$252,000
|
Planning Tip: Because college costs historically increase over time, families should plan for future costs rather than today’s prices. Starting early can significantly reduce the amount that needs to be saved each month.
Know your Funding Options
Whether the college years seem like a distant dream, or they’re just around the corner; with college costs rising every day, it’s never too early to start saving for higher education.
There are many ways you can prepare for college costs, and you should consider all the options available. From traditional college savings plans (e.g., Coverdell Education Savings Accounts and 529s), grants and scholarships, even life insurance. It is important to learn how all these components may fit into your child’s education funding plan.
Don’t hesitate to start planning now, time is of the essence. Let us help you make saving for college a rewarding part of your financial strategy! Click on funding options below to learn more.
Tips for Lowering College Expenses
A Two-year Transfer Path
Attending a two-year college or less expensive four-year college for the first year or two can help to lower costs. Ultimately, the transferable credits earned in the first year or two can be transferred to a preferred school of choice.
Early Graduation Option
A variety of colleges offer programs allowing students to earn the required credits to graduate in three years instead of four. This saves both time and money.
Other Scholarships
Thousands of scholarships are made available every year by private corporations, organizations, foundations, and individuals. Each scholarship will have its own application process, and many are limited to specific students (for example by geography, demographics, or ability). Many websites give you online access to these scholarships, making them easy to find and apply for.
Get Creative
Off-campus living, limited meal plans, and used textbooks or supplies can be additional ways of lowering college expenses. This is where people can benefit from getting practical and creative.
Work With a Financial Professional
A financial professional can help assess your financial situation today, review optimal college funding options, develop a plan, and determine how much it might cost to send your child(ren) to college. Financial professionals can share best practices gained from working with other clients, including maximizing college planning efficiencies and minimizing college expenses when possible.
Source: College Board, Trends in College Pricing and Student Aid 2024; National Center for Education Statistics (NCES), Fast Facts: Tuition Costs.
IMPORTANT DISCLOSURES
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The decision to purchase life insurance should be based on long-term financial goals and the need for a death benefit. Life insurance is not an appropriate vehicle for short-term savings or short-term investment strategies. While the policy allows for loans, you should know that there may be little to no cash value for loans in the policy’s early years.
The information provided is not written or intended as specific tax or legal advice. FundaDream, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
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