College Degree for Children Born in 2013 Could Cost $140,000

From Macleans:

The cost of a four-year university degree for a child born in 2013 could rise to more than $140,000 due to tuition inflation, a new study says.

But three-quarters of parents with children under 18 haven’t made a detailed estimate of the total cost of post-secondary education, said BMO’s Wealth Institute in a report released on Wednesday.

Tuition and other costs for a four-year university degree now can cost more than $60,000, the report said.

“I think that for most people if you tell them that tuition has increased two or three times the rate of inflation they will be surprised at that,” said BMO’s Caroline Dabu.

This can leave parents unprepared for the costs and students with hefty loans to pay back when they graduate, Dabu said from Toronto.

Over the last five years, the average annual inflation rate has been 1.6 per cent while tuition inflation was 3.9 per cent, the bank said.

2 Comments

  1. the (scary) cost of tuition now, and the (frightening) rate of inflation are part of a major list of reasons why I dont (cant afford) want to have kids.

  2. There is zero reason for college to cost so much. A large part of it is the ease of financing. Colleges can charge as much as they want. Supply-and-demand doesn’t come into play when there is an infinite amount of money. This is especially true when so many students look on it as free money. If it was there money, they’d demand lower pricing. If financing was quite as easy there would be far fewer people who could afford $140k which means the colleges would lower their pricing.

    Also why are colleges ran like towns with a gazillion features?
    What if there was a college option which just taught?

    Think about the massive savings. If a professor had 3 classes a day of 25 students each and each student gave him $14,000 instead of 140,000 that professor would earn over $1million/year.

    Now yes, there would be expenses. There would be overhead and more employees than just the professor. The numbers given above were just pulled out of thin air. They could be adjusted as needed. Obviously some classes are more than 25, some classes would require more than just a lecturing professor, etc, etc.

    However the basic premise of just teaching and keeping the fluff to a bare minimum could result in colleges with an extremely low tuition rates while still paying the professors very well.

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