College Pricing Trends for 2013-2014

The College Board recently released new college cost figures for the 2013/2014 academic year in its annual Trends in College Pricing report.

The College Board noted that even though this year's increase in tuition and fees was the smallest in many years, the growth in student grant aid from previous years has not continued. As a result, many students are facing higher costs, even in the face of smaller price increases.

To read the full Trends in College Pricing 2013 report, go to trends.collegeboard.org. Here are cost highlights:

Public colleges (in-state students):

Tuition and fees increased an average of 2.9% to $8,893
Room and board increased an average of 3.6% to $9,498
Total cost of attendance for 2013/2014 is $22,826

Public colleges (outstate students):

Tuition and fees increased an average of 3.1% to $22,203
Room and board increased an average of 3.6% to $9,498
Total cost of attendance for 2013/2014 is $36,136

Private colleges:

Tuition and fees increased an average of 3.8% to $30,094
Room and board increased an average of 3.5% to $10,823
Total cost of attendance for 2013/2014 is $44,750

"Total cost of attendance" includes tuition and fees, room and board, books and supplies, and an allowance for transportation and personal expenses.

I know as parents of college-age children read this, they're thinking, "Come on scholarship!"

Wishing you and your child luck,

Kevin Kroskey, CFP, MBA

Diversification: Disciplinarian of Disciplinarians

Disciplined diversification works when you do and even when you don't want it to. Diversification in effect forces you to sell the thing that has been doing so well in your portfolio and to buy the thing that hasn't. While this makes rational sense, it is emotionally difficult to execute. Think back to the tail end of 2008--were you selling bonds and cash to buy stocks? Most likely you weren't unless your advisor or some sort of automatic trigger did it for you. Carl Richards of www.behaviorgap.com provided a good reminder of how diversification works in a recent NY Times blog post. The diversification he discusses here is more so related to equity asset-class diversification but also touches on the three basic building blocks--equities, bonds, and cash. He doesn't discuss alternative asset classes -- an asset class that doesn't fit neatly into the three basic categories -- being used to further diversification, but that's a detailed topic for another day. ...

Did You Do as Well as Your Mutual Fund?

It's common practice to look at a fund's total return number for a snapshot of what performance to expect, but that won't give you the full picture. Morningstar studies have shown that investors' actual gains frequently pale in comparison to reported total return numbers. This phenomenon frequently plays out among funds that attract assets after streaks of hot performance, only to see some investors get skittish at the first signs of underperformance . After a moment's though, even a novice investor will realize that this behavior is just the opposite of the mantra -- buy low and sell high. This practice can be more broadly attributed to bad behavior and lack of a plan or philosophy when it comes to investing. Investors are human and humans are emotional. As much as the logician in me would like to believe my left brain is working to drive my decision making, logic comes in after emotions are experienced to provide context for how we are feeling and not the other ...

Healthcare Reform Explained

If you're like me, you find the 1000 page plus Heathcare Reform Act a bit confusing. This nine minute animated movie -- featuring the "YouToons" -- explains the problems with the current health care system, the changes that are happening now, and the big changes coming in 2014, produced by the Kaiser Family Foundation. Kevin Kroskey, CFP, MBA

Kevin Kroskey's Money & Mind

Search This Blog