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 likely to attend is the first step toward building a realistic savings plan. 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 and how this cost has changed over time; then we 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

College tuition and fees can vary widely depending on a few key factors: whether the student is attending an in-state or out-of-state school, whether the degree is a two- or four-year program, and whether the school is public or private.

According to College Board, the average college tuition (including fees) for the 2024–2025 school year was:

• $11,610 for in-state students completing a four-year degree at a public college.
• $30,780 for out-of-state students completing a four-year degree at a public college.
• $4,050 for in-state students completing a two-year degree at a public college.
• $43,350 for students completing a four-year degree at a private, nonprofit college.

Keep in mind that many families do not pay the full price. Scholarships and need-based aid often reduce the actual cost significantly. But planning with published prices ensures you’re not underestimating future needs.

Average college room and board

Room and board costs are typically not included in tuition, but they represent a significant portion of the overall expense for students living on campus.

For the 2024–2025 school year, the average room and board costs were:

• $13,310 for both in-state and out-of-state students at public four-year colleges.
• $10,390 for in-state students completing a two-year degree at a public college.
• $15,250 for students completing a four-year degree at a private, nonprofit college.

Depending on whether your child lives on campus, off campus or at home, these figures could vary substantially.

How much does it really cost to go to college?

When we combine tuition, fees, room and board, the average cost of college in the 2024–2025 school year was:

• $24,920 for in-state students completing a four-year degree at a public college.
• $44,090 for out-of-state students completing a four-year degree at a public college.
• $14,440 for in-state students completing a two-year degree at a public college.
• $58,600 for students completing a four-year degree at a private, nonprofit college.

These figures don’t include additional expenses like books, travel or personal items, which can add thousands of dollars more to the annual cost.

How much does four years of college cost?

College costs have risen consistently over the past several decades. According to the Education Data Initiative, postsecondary institutions raise tuition (and fees) by an average of 5.87% each year. However, more recent annual increases have been closer to 2% to 3%, especially at public institutions. Using the numbers above and taking inflation into account, we can estimate the total cost of a four-year college degree in 2025.

Using today’s numbers, a four-year college degree including room and board can cost $108,805 for in-state students and $192,505 for out-of-state students attending a public college. Students attending a private university should expect to pay $255,858.

How much will college cost in five years?

How much will college cost in the future? If costs continue to rise at historical rates, here’s what families might expect to pay for four years of college starting five years from now:

• $144,715 for in-state students completing a four-year degree at a public college
• $256,039 for out-of-state students completing a four-year degree at a public college
• $340,301 for students completing a four-year degree at a private, nonprofit college

These figures assume continued inflation in tuition, fees, room and board but do not include financial aid. However, 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?

Looking even further into the future, projections suggest ...

In 10 years:

• $192,477 for in-state students completing a four-year degree at a public college
• 340,542 for out-of-state students completing a four-year degree at a public college
• $452,614 for students completing a four-year degree at a private, nonprofit college

And in 15 years:

• $256,002 for in-state students completing a four-year degree at a public college
• $452,935 for out-of-state students completing a four-year degree at a public college
• $601,995 for students completing a four-year degree at a private, nonprofit college

These are rough estimates based on long-term inflation trends and may fluctuate depending on future policy changes, institutional pricing or shifts in educational delivery models. Planning for college requires anticipating these rising costs and accounting for them in your savings strategy.

Hidden costs of going to college

Beyond tuition and room and board, families should budget for other expenses that are often overlooked. The College Board advises students to plan for a 12-month living expenses budget of about $24,000 to $36,000. Additional costs to be aware of include the following:

• 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: 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

Forecasting 10 to 15 years into the future is difficult. Many factors could slow the rise of college costs over time.

A 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.

While no one can predict the future, it’s important to remain flexible and revisit your plan regularly.

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. However, if funds are withdrawn for nonqualified purposes, earnings are subject to income tax and a 10% federal penalty.

Some families explore permanent life insurance policies as a more flexible savings vehicle. These policies can accumulate cash value that may be used to help fund education.

Most importantly, be 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 protection in place, and to be on track for retirement before you ramp up saving for your kids’ college funds. Saving for college is important, but it shouldn’t come at the expense of your long-term financial security.

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.