College Costs Reach 'Milestone'

Ready to get started?

Your quotes are always free.

Tim is a licensed life insurance agent with 23 years of experience helping people protect their families and businesses with term life insurance. He writes and creates stuff for QuickQuote and other insurance and financial websites...

Full Bio →

Written by

UPDATED: Feb 25, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance related. We update our site regularly, and all content is reviewed by life insurance experts. reported today the average cost of a four-year private college is now $30,367 annually. The average tuition at four-year public colleges and universities slowed for the third consecutive year and now sits at $5,836 annually. The College Board reports that college costs have risen faster than the rate of inflation for eleven consecutive years now.

And don’t forget, these are just the tuition costs.  Little Johnny and Jenny will need a place to rest their respective heads, an occasional meal and perhaps a textbook or two. Room and board alone now averages $8,149 for private schools and $6,960 for public schools.

Is it worth it? The College Board reports that in 2005, women aged 25-34 with a bachelor’s degree earned 70% more than those with high school diplomas. For men, the difference was 63%.

So what are parents to do about rising college costs? There are many options available including grants, scholarships, student loans, 529 plans, home equity loans, etc. An often overlooked source of college funding is a life insurance policy. Many permanent type (e.g. Universal and Whole) life insurance policies build cash values which may be tapped for college expenses (check with your CPA or tax planning attorney for tax implications).

A final consideration for the steadily increasing cost of college is to plan ahead and purchase an adequate amount of term life insurance. Whether it’s Stanford University or the local community college, term life insurance can help ensure that Johnny and Jenny can continue their education, new textbooks and all.

Ready to get started?

Your quotes are always free.

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

 Secured with SHA-256 Encryption