You may be vaguely aware that the cost of college keeps rising faster than inflation, but that doesn’t necessarily mean you’re ready for the sticker shock when your kids start applying for schools. Currently, the average cost of a year of undergraduate education is $38,270 per student per year, which includes the cost of books, supplies, and living expenses.
Unfortunately, college tuition costs go up every year by about 4.1%. That means a student starting their education with a price tag north of $38,000 in 2024 is likely to be paying nearly $45,000 for their final year of schooling in 2028.
But just because college costs are unreasonable doesn’t mean your kids’ only option is to live off-grid in a yurt. There is plenty that you and your nearly adult children can do to protect your finances and afford an education. Here’s what you need to know.
Understanding the FAFSA Student Aid Index
Completing the Federal Application for Free Student Aid (FAFSA) may feel dauting, but it’s an important part of paying for college. The responses you and your student provide on the FAFSA will help determine how much federal aid your student qualifies for, as well as what financial aid the school will offer your child.
