Education Planning Realities
October 20, 2025
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The current cost of college compared to that of 30 years ago, after adjusting for inflation, is now 2.02x as high for in-state, public four-year institutions and 1.75x as high for private nonprofit four-year institutions.1
Current annual costs for undergraduates, based on the 2024-25 school year 1
| Public 4-Year (In-State) | Public 4-Year (Out-Of-State) | Private 4-Year (Non-Profit) | |
|---|---|---|---|
| Tuition & Fees | $11,610 | $30,780 | $43,350 |
| w/Room & Board + includes tuition, fees, supplies, and other expenses |
$24,080 | $44,090 | $58,600 |
Furthermore, the cost of childcare (~$1,372/mo. national average for daycare for an infant2), home prices (~$419,000 national median3), interest rates, and an increased importance of contributing toward one’s own retirement makes education planning more complex than ever. Simply calculating a savings need and funding a 529 plan may no longer be the best strategy (or even feasible) for many clients.
Past Trends
Some of the money came from past income in the form of savings.
- 529 plan savings
- Other savings (i.e. Non-Qualified Investment Account)
- Family savings
Present Trends
Some of the money comes from current income and financial aid.
- Cash flow (i.e. family, student’s part-time job)
- Financial aid
Future Trends
Some of the money will come from future income, in the form of student loans.
- Federal & private loans
- Subsidized & unsubsidized
1 CollegeBoard: Trends in College Pricing and Student Aid 2025
2 2025 Care.com Cost of Care Report
3 FRED Q4 2024 Median Sales Price of Houses Sold for the United States
For Use with the General Public. Financial Planning and Advisory Services offered through Vicus Capital, Inc., a federally Registered Investment Advisor.
Categories: Financial Planning
Tags: College Costs, Education, Education Planning, Student Loans, Tuition
