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.