Average Cost of College

Knowing how much college will cost when your child is going to be attending is the first step toward 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.

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 2022-2023 school year was:

• $10,940 for in-state students completing a four-year degree at a public college
• $28,240 for out-of-state students completing a four-year degree at a public college
• $3,860 for in-state students completing a two-year degree at a public college
• $39,400 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:

• $12,310 for in-state students completing a four-year degree at a public college
• $12,310 for out-of-state students completing a four-year degree at a public college
• $9,610 for in-state students completing a two-year degree at a public college
• $14,030 for students completing a four-year degree at a private non-profit college

What is the average cost of college?

When we consider the numbers above, we see that the average cost of college in the 2022-2023 school year, including tuition, fees, and room and board, is:

• $23,250 for in-state students completing a four-year degree at a public college
• $40,550 for out-of-state students completing a four-year degree at a public college
• $13,470 for in-state students completing a two-year degree at a public college
• $53,430 for students completing a four-year degree at a private non-profit college

How much does 4 years of college cost?

A four-year college degree, including room and board, can cost $93,000 for in-state students and $162,200 for out-of-state students attending a public college. Students attending a private university should expect to pay $213,720 using today’s numbers.

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. 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:

• $118,694 for in-state students completing a four-year degree at a public college
• $207,012 for out-of-state students completing a four-year degree at a public college
• $272,766 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:

• $151,487 for in-state students completing a four-year degree at a public college
• $264,206 for out-of-state students completing a four-year degree at a public college
• $348,127 for students completing a four-year degree at a private non-profit college

And in 15 years, it might be:

• $193,340 for in-state students completing a four-year degree at a public college
• $337,202 for out-of-state students completing a four-year degree at a public college
• $444,266 for students completing a four-year degree at a private non-profit college

Other factors affecting average tuition over time 

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

After the move to distance learning in the wake of COVID-19, for example, there is the possibility that many colleges may offer a combination of on-campus and online classes in the future, which could have a lasting impact on tuition and room and board costs. 

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.