Thursday, May 17, 2012
With all the kerfuffle about student loans of late I decided to do some of my own research and forecasting. For the past 25 years tuition at private universities has risen an average of 3.47% in real terms (adjusted for inflation). Given that my theoretical future children will be starting college about 25 years from now I decided to calculate the real cost of their college if this rate persists. Here's where things get scary. Last year the UofC estimated $62,425 in total expenses per year, per student - already about $20,000 more than when I started undergrad. If the current growth rate persists, the REAL cost of 1 year at the UofC will be $146,460 per student. In other words I'll need to be making $500,000 (pre-tax) just to send 2 kids to college - assuming no other expenses. This situation seems unsustainable, that is unless private university is to become for only the 0.1%. Also can you imagine college students living a $146k per year lifestyle? Massages and jacuzzis available in every dorm room, personal chefs, hummer limos driving you to class. At some point universities will have to run out of things to spend money on... right?