The Increasing Value of a College Degree
The true value of a college degree is clear when you consider a child’s future earnings potential and career path. However, the cost of college is also higher than ever. A CollegeAccess 529 Plan Account can help manage the cost of higher education.
College costs far outstrip inflation and incomes
On average, tuition has increased approximately 8% per year, which is substantially higher than the general rate of inflation and faster than income increases for most families.1 That means that tuition fees for a child born today will be more than three times the current rate by the time they have reached the age 18.2
|AVERAGE COLLEGE TUITION AND FEES
(excludes room and board and other expenses)
|2-Year Public College||$2,340||$3,860|
|4-Year Public University||$4,870||$10,940|
|4-Year Private Nonprofit University||$21,860||$39,400|
Source: College Board, Trends in College Pricing and Student Aid 2022.
Debt will likely be a burden to students in the future
With costs on the rise, many parents are in a bind. But students themselves are suffering from enormous debt burdens. Total student-loan debt topped $1.6 trillion, as more and more kids are attending college on borrowed funds.3
For these graduates, getting a degree could be the easy part; even if they land their dream jobs, they could be paying off student loans for years to come.
Watch their career take flight
A higher education can provide more than just higher earnings. According to the U.S. Department of Labor, a college degree typically results in more career options, greater promotion opportunities, more vacation time and other benefits, and lower unemployment rates. It can also pave the way for graduate school, which may lead to even greater earnings and benefits.
3Forbes, 2022 Student Loan Debt Statistics: Average Student Loan Debt, September 2022.