When Estimating College Costs, Many Families Immediately Panic

When student financial aid is included, college is affordable for most families

If you take a look at current tuition costs, you'll see there is quite a range in fees. Many public colleges are in the $5,000-$8,000 range, while private colleges can run now exceed $40,000. However, don't discount private colleges based only on the sticker price. Call or write to the colleges of your choice and ask them to send you this estimate of the annual attendance cost of this institution. Keep in mind however, the actual expenses will vary according to the student's lifestyle and the financial aid packet received. In any case, this will give you a good starting point where you can begin estimating college costs.

To begin with, you must differentiate between direct costs and indirect costs.

• Direct costs are paid directly to the college. These include tuition and other expenses incurred such as lab fees. Room and board for residential students are also direct costs.

• Indirect fees are fees that are not set by the college. These are books, transportation, and personal expenses. A family has control over indirect fees, but direct fees are set and must be included in the financial plan as is.

Three great resources for starting your estimates are listed below:

• Find the annual costs of any four-year college or university in the United States. You may search by school name, state, or both.

• Get this free MS Office Excel Template This is a free download you can plug into your Excel program that includes formulas for inflation. Start now to plan for future college costs.

• Use this calculator to see how much college will cost by the time you enroll. If you have a particular college in mind, you can project from actual costs. If you don't, just use the average costs provided.

When you have reached this point, you are now ready to look at indirect fees and how you can control them.

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