What will it take to meet the projected cost of college? The chart below illustrates the one-time and monthly contributions you would need to invest today, assuming an 7% annual rate of return, to meet the projected cost of a four-year public college education.
|Child's Current Age|
|2 Years Old||5 Years Old||10 Years||15 Years|
|Projected Cost of College1||$189,727||$164,363||$129,398||$101,871|
|Years to College||16||13||8||3|
Examples are for illustrative purposes only, and are not representative of any particular investment. The chart does not take into account investment expenses or taxes, which if reflected, would lower the results shown. Investments do not guarantee any specific rate of return, and you may have a gain or a loss on the amounts invested. Periodic investing plans do not assure a profit and do not protect against loss in a declining market.
Investors should carefully consider college savings plan investment goals, risks, charges and expenses before investing. To obtain a disclosure document, which contains this and other information, talk to a financial advisor or call Franklin Templeton Distributors, Inc., the manager and underwriter for a 529 plan, at (877)4NJ-BEST. You should read the disclosure document carefully before investing and consider whether your or the account beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in its qualified tuition program.
- The College Board, Trends in College Pricing, 2015-16. Projected cost upon child's entrance to college for four years at a public or private college. Figures are based upon the 4.90% and 4.33% 10-year average annual increase in public and private college costs, respectively, as reported by The College Board for the 2015-16 school year. Costs include tuition, fees, room and board.