Average Cost of College Tuition

Tom Gilmour is a senior director of planning experience integration for Northwestern Mutual.

Knowing how much college will cost when your child is going to be attending is the first step toward making a budget and planning for the expense. Once you have an idea of what the expenses will be, it’s possible to figure out how much room you have in your financial plan to start saving for it. This will also give you and your child a sense of what’s realistic for you to save so you can start thinking about how you might fill any gaps that exist.

Below, we take a look at the average cost of a college education today, how this cost has changed over time, and answer other common questions you might have. We also highlight some of the other hidden costs of college—that can be easily overlooked—to include in your budget.

Average college tuition

Tuition and fees can vary significantly depending on whether you are an in-state or out-of-state student, whether you are attending a two-year or four-year program, and whether you are attending a public or private school.

With this in mind, according to College Board, the average college tuition (including fees) for the 2023-2024 school year was:

• $11,260 for in-state students completing a four-year degree at a public college

• $29,150 for out-of-state students completing a four-year degree at a public college

• $3,990 for in-state students completing a two-year degree at a public college

• $41,540 for students completing a four-year degree at a private non-profit college

Average college room and board

Room and board are not included in a college’s tuition cost, so it’s important to have a sense of what these expenses are as well:

• $12,770 for in-state students completing a four-year degree at a public college

• $12,770 for out-of-state students completing a four-year degree at a public college

• $9,970 for in-state students completing a two-year degree at a public college

• $14,650 for students completing a four-year degree at a private non-profit college

How much does it really cost to go to college?

When we consider the numbers above, we see that the average cost of college in the 2023-2024 school year, including tuition, fees, and room and board, is:

• $24,030 for in-state students completing a four-year degree at a public college

• $41,920 for out-of-state students completing a four-year degree at a public college

• $13,960 for in-state students completing a two-year degree at a public college

• $56,190 for students completing a four-year degree at a private non-profit college
  

How much does 4 years of college cost?

Using the numbers above, we can estimate the total cost of a four-year college degree. But it’s important to note that these estimates do not take inflation into consideration, which may easily add anywhere from a few hundred to a few thousand dollars to the final cost over four years.

So, using today’s numbers, a four-year college degree, including room and board, can cost $96,120 for in-state students and $167,680 for out-of-state students attending a public college. Students attending a private university should expect to pay $224,760.

How has the average cost of college changed over time?

When trying to determine how much to save for the cost of college tuition, it’s important to remember that, like everything else, college costs rise over time. According to the National Center for Education Statistics (NCES), the cost of tuition increased an average of 4.8 percent per year between 2000 and 2022. With this in mind, you should assume that tuition will increase by 5 percent each year, which is about how much tuition costs have increased annually over the last 10 years.

How much will college cost in 5 years?

How much will college cost in the future? If the trends above continue, that means that in five years, the average cost of a bachelor’s degree will be:

• $122,676 for in-state students completing a four-year degree at a public college

• $214,007 for out-of-state students completing a four-year degree at a public college

• $286,857 for students completing a four-year degree at a private non-profit college

Since many students now take more than four years to graduate, that could further increase the costs.

What will the average cost of a bachelor's degree be in 10 or 15 years?

Extending the trend line out further, we see that the average cost of a degree in 10 years might be:

• $156,569 for in-state students completing a four-year degree at a public college

• $273,133 for out-of-state students completing a four-year degree at a public college

• $366,110 for students completing a four-year degree at a private non-profit college

And in 15 years, it might be:

• $199,827 for in-state students completing a four-year degree at a public college

• $348,595 for out-of-state students completing a four-year degree at a public college

• $467,260 for students completing a four-year degree at a private non-profit college

Hidden costs of going to college

Remember: The figures above don’t reflect all the potential costs of a college education. Additional costs to be aware of include:

• Transportation costs: Students who commute to school should consider the costs of getting to and from campus, which might include gas, vehicle maintenance and parking fees for drivers or bus passes, rideshare fees and train tickets for those who rely on public transportation. Costs can be even higher for out-of-state students who travel home for the holidays or winter and summer break.

• Textbooks and supplies: The cost of textbooks and other supplies, like laptops and dorm furniture, can quickly add up to thousands of additional dollars.

• Social costs: Participating in on-campus clubs and social organizations can be a great way to make friends and socialize at college. Just keep in mind that some memberships could come with fees—which can be particularly high for students involved in fraternities and sororities.

• Food expenses: Many institutions have multiple meal plans, which may come with more or fewer options and flexibility. Choosing a more expensive meal plan can add hundreds of dollars to each semester. If you’re living off campus where you’ll be cooking for yourself, you’ll need to budget for grocery expenses.

Other factors affecting average tuition over time

Of course, 15 years is a long time away, which makes an accurate prediction difficult. Many factors could slow the rise of college costs over time.

A more dramatic move to remote, online or hybrid degree programs, for example, might make room and board unnecessary for many students, which could reduce the cost of an education. Likewise, less demand for on-campus housing might drive off-campus housing prices up. It’s also possible that laws at the state or federal level might be put in place to slow the rise of college costs or even make tuition free for all, or some, students.

Saving for the average cost of a bachelor’s degree

It’s always better to be prepared. Plus, the earlier you can start saving for college the better, since compound interest will help your money go further. A 529 plan, which lets you save for college in a tax-advantaged account, is one place you can put college savings.

There are also non-traditional ways to save for your children’s schooling, such as buying permanent life insurance policies and utilizing the accrued cash value to pay for college costs. Since the money isn’t earmarked for school, there are no penalties if you don’t use it all for college, as is the case with 529 plans, on which you’ll pay a 10 percent penalty on any money you withdraw that aren’t used for college costs.

One note of caution: Make sure you’re planning for your own financial future before you start saving for college. It’s important to have an emergency fund built up, to get the proper insurance in place for protection, and to be on track for retirement before you ramp up saving for your kids’ college funds.

Northwestern Mutual Investment Services, LLC (NMIS) (securities), subsidiary of NM, registered investment adviser, broker-dealer, member FINRA and SIPC. All investments carry some level of risk including the potential loss of principal invested.

Utilizing the cash values through policy loans, surrenders, or cash withdrawals will reduce the death benefit; and may necessitate greater outlay than anticipated and/or result in an unexpected taxable event.

Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP^®, CERTIFIED FINANCIAL PLANNER^®, and CFP^® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.