Inflation and Art School

<p>I'm trying to do long-range planning (specifically using MICA, as that's what my daughter is favoring so far). What is a reasonable inflation factor to consider per year, 4%? Is that too much, or too little to apply for each year? I have to go out five years from now since D will not start until Fall 08. Should I apply the same factor to housing and meal plans? (Taxguy, are you there?) I know you don't have a crystal ball, but neither to do I, with respect to whether/how much financial aid she might get. I'm obviously trying to see how much FA (and future savings) would be needed in order to consider this a feasible choice. We need to have a discussion about this with D early this summer, as she starts her school research in earnest. Thanks in advance, Steve</p>

<p>No one has a crystal ball and mine in particular is broken. However, based on what I see at various colleges regarding cost increases, I would use an inflation factor of 6%. I think your 4% figure is too low especially regarding tuition and fee increases. It might be fine for housing costs though.</p>

<p>Thanks, taxguy. Not the answer I wanted, but thanks anyway!</p>

<p>You might call MICA's financial aid office to get their thoughts on how much their costs are likely to rise each year. I did that when my son received his financial aid offer from them last year, and they were pretty candid about expected increases and what provisions were available to handle them. I don't remember the figures they gave me, since my son ended up going somewhere else, but at the time it was useful to have the numbers.</p>

<p>Thanks, jdsmom. Since MICA will probably be high on D's list, I will be talking to Admissions and Financial Aid offices there.</p>