College costs rise nationally but tools available to help Colorado families

By Debra DeMuth
The annual report from the College Board on national higher education costs may feel like a splash of ice water in the face for some families with college dreams.
The latest college pricing trends report, issued this fall, said that tuition and fees were up again -- about 6 percent at public and private four-year colleges nationally and up roughly 4 percent at two-year colleges.

Some greeted this as “good news” because the increases had been higher in past years. However, that distinction may be little comfort for families watching as college costs continue to outpace inflation.

At the same time it released its latest data on college costs, the College Board also published some compelling data on the financial value of a college education. “The gap between the median earnings of college graduates and the median earnings of high school graduates has increased significantly over the past 30 years,” the College Board said.

An earlier, more detailed version of the College Board’s report on the benefits of higher education shows that college graduates typically earn about 73 percent more than high school graduates, and those with advanced degrees earn two to three times as much as high school graduates.

Of course, increased earning power isn’t the only benefit of higher education but it does show that paying for college can be a good investment.

“The earnings benefit to the average college graduate is high enough for graduates to recoup both the cost of full tuition and fees and earnings forgone during the college years in a relatively short period of time,” according to the College Board.

And, while college costs may seem intimidating, many tools are available to help bring higher education within reach.

Colorado offers two resources that provide a wealth of information and support just few computer keyboard clicks away.

CollegeInColorado.org is a free website offered by the Colorado Department of Higher Education to help students and their parents plan, apply and pay for college. Visitors to the site can explore careers, plan academically for college, search scholarships, review financial aid, compare colleges and apply online.

CollegeInvest is a not-for-profit division of the Colorado Department of Higher Education that focuses specifically on helping families pay for college. It combines expert advice with college savings plans, student and parent loans and scholarships to help eliminate financial barriers to higher education. You can access those by going to CollegeInvest.org or calling 1 (800) COLLEGE.

Families can get a jump on paying for college by starting a college savings plan when their kids are still young. CollegeInvest’s college savings plans – a type known as “529 plans” – offer families a way to start saving for higher education expenses as soon as a child is born. Just like saving for retirement, the earlier you start, the easier it will be to reach your saving goals. But it’s never too late to start a college savings plan, even if your child is a high school senior.

Congress recently enacted legislation making earnings on investments in 529 college savings plans permanently free from federal taxes so long as the money is spent on qualified higher education expenses. College savings plans from CollegeInvest offer the extra benefit of a Colorado income tax deduction for all contributions.

If you don’t have sufficient savings or other resources to cover college costs, however, CollegeInvest offers low-cost student and parent loans. While we’re often advised to avoid debt, as the College Board pointed out, investing in a higher education can pay off fast. Thanks to low- or no-fee loans with below-market interest rates, CollegeInvest’s student loans offer attractive terms to help make the cost of college even more manageable for Colorado students.

Both CollegeInColorado.org and CollegeInvest also have information on direct financial assistance, including the College in Colorado scholarships (up to $1,500 per year for qualifying students) and a half million dollars of total assistance available annually through CollegeInvest.

The CollegeInvest initiatives include scholarships for undergraduate students, matching grants for families saving for college, loan forgiveness programs and even an essay contest that allows grandparents to win money for their grandkids’ future college costs. These kinds of programs can be important elements of a family’s plan to pay for education.

Whether college is looming on the horizon or years in the future, and even if you’re an adult thinking about going back to school, these programs offer great resources to make planning and paying for school more attainable for all Coloradoans.

• www.collegeincolorado.org
• www.collegeinvest.org

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