Back to School: Navigating the Rising Cost of Education

A topic that is top-of-mind for many individuals during the back-to-school season is the cost of education and how to plan for it. Whether you have children or grandchildren preparing for college or you are considering furthering your own education, it is crucial to understand the financial impacts.

Let’s explore some eye-opening statistics regarding the cost of college that might surprise you. In 2022, the average expenditure on higher education by families reached $25,313. Interestingly, family savings and income accounted for 54 percent of this amount, underscoring the importance of having an effective financial plan. Scholarships and grants constituted 26 percent, followed by student borrowing, which made up 18 percent.¹

In 2023, the projected average household cost for back-to-college shopping is estimated at $1,367, while back-to-school shopping may average around $890 per household.²

For individuals who have already pursued higher education, it’s important to note that student loan payments will resume in October 2023. This is expected to significantly impact many households, as borrowers have enjoyed a forbearance period since the onset of the COVID-19 pandemic. The resurgence of these monthly expenses could put a strain on budgets and require individuals to reassess their financial strategies in order to navigate these hurdles without derailing their long-term goals.

Reach out to proactively address all the various financial aspects of education and develop a strategy that enables you and your loved ones to pursue your academic aspirations.