<p>My D starts her freshman year this fall. I'm putting together some numbers on how much I need to pay out of pocket and how much she'll need to take out in loans. Should I just plan for a 5% across the board increase for total costs for each year to help in my planning? How does everyone else work these increases into their planning/budget?</p>
<p>I handled it by gasping “How could they raise the costs at the last minute without warning!!!?” I found out about the increase in r&b when I looked at the bill. It was not changed on any literature or the web, and changed long after we paid the deposit.</p>
<p>I think 5% is as good a guess as any.</p>
<p>Both my kids took five years to graduate.
Youngest lived off campus, moved several times, but r&b costs were stable.</p>
<p>Having kids in private school since K I can tell you the realistic average is 7%. Some years less, some years more, but better safe than sorry. I didn’t believe it when I calculated how much tuition would cost senior year when the kids were in K, and we were within a few hundreds dollars of our projections. </p>
<p>I know it’s coming and yet it irritates me every year when I see the new tuition rates. Especially when I see the endowment fund S’s school in particular has, they wouldn’t even need to charge anyone tuition and I don’t see any new buildings or new staff or any reason why tuition needs to be as high or continually rising. Yet those calls keep coming to donate!</p>
<p>State universities may show a pattern of stable tuition during good economic times (when tax revenue to the state government is good) but huge increases during economic downturns (when shortfalls in tax revenue are made up by increasing tuition).</p>
<p>Also, unless the student is a top end student, consider the possibility of needing an extra semester or few.</p>
<p>Thanks to everyone for the comments. @ucbalumnus I know what you’re saying about state universities. My state has some tough financial times during this last downturn and if I recall correctly raised rates 15% one year. My D will be going to an OOS private college so I’m thinking to expect a 5% - 7% increase/year. Hopefully, it won’t be that much but I think I should plan for this.</p>
<p>If you do a google search you should be able to find the tuition and R&B rates for past years. This will give you a feel for what could happen. Also if you are getting FA that will change and usually decrease. </p>
<p>@noname87 the FA my D is getting was discussed with the FA office and all of it is grant money and will remain the same throughout her 4 years. However, she must have a B average after the second year to maintain the current FA package.</p>