College debt increases

One trillion.

That’s the mark, in dollars, that U.S. student loan debt just passed, according to the Consumer Financial Protection Bureau.

According to the College Board, the 2011-12 published total cost for tuition, fees, and room and board at an in-state four-year public institution averaged $17,131.

But that’s only the tip of the iceberg.

According to the Business Insider there is nearly $70,000 in additional college costs that isn’t included in that $17,131 amount, including college tour costs, computers, transportation, laundry, cell phone, etc.

According to Forbes magazine, even at a base rate of $17,131 per year, with the cost of college increasing at an average of 8% per year, “Parents of a two-year old starting a college savings plan would have to save about $925 per month at 4% earnings growth to pay for four years of college.

Even if they were able to earn an 8% average growth rate on their savings, they would still need to save around $600 per month to do it.”

Parents now have to research ways to get financial aid for their child’s college education and much sooner.

Some options include: scholarships for average students, high-award scholarships, and 529 saving plans.