The Cost of College

I was just on the University of Texas website, looking at the price of tuition. It isn't cheap! For Texas residents who live on campus, the tuition and room and board run nearly $16,000 per year (using 2003-2004 numbers). Here are some scenarios of what tuition could like by the time my 8 month-old daughter is ready to start college:

Please keep in mind, these are just estimates!

She will be ready for college Fall 2023, which is 18 years away.

Inflation   Year    Year    Year    Year  Total for
  Rate       1       2       3       4    For Years
       5% $38,381 $40,300 $42,315 $44,431  $165,426
       6% $45,521 $48,252 $51,147 $54,216  $199,137
       7% $53,903 $57,676 $61,714 $66,034  $239,327
       8% $63,729 $68,827 $74,333 $80,280  $287,168

As you can see, it's not a pretty picture. Maybe she can get a scholarship!

The purpose of this post was to give you something to think about. My next post will address ways to save for college.