Hiking tuition costs have officials warning to prepare now
UPDATED: Friday, June 1, 2012 - 10:26pm
WACO -- More and more people are getting their degree's and even their master's.
But as enrollment increases so does tuition.
"In 2010 and 2011 the college tuition average nationwide increase rate was eight percent," said Josh Satterfield, CFP financial advisor, Edward Jones.
In Central Texas, Baylor University's tuition increased this year by 6.5 percent and McLennan Community College is also hiking hourly tuition to $8 per semester hour.
This trend is likely to continue, so officials are encouraging everyone to prepare now.
"The most popular choice is something called a 529 plan, which is a tax advantage plan that allows people to contribute money, have it grow tax-deferred and as long as its used for college it comes out tax free," said Satterfield.
You can start a 529 plan at any time no matter the age of your child but officials say typically you want to allow five to seven years for that money to grow.
According to a CNN report student loans have soared 275 percent over the past decade.
So the most important tip...
"The sooner you can provide some planning the better it is," said Satterfield.