Even so, the net price can vary by school, family income, and asset level, or even by the number of dependents in a household. Furthermore, many variables can remain unknown for much of the savings period, sometimes until after the student is admitted to and selects a particular university.

Most universities offer a net cost calculator on their websites, which can be helpful for families who know which university or small selection of universities a student may target. Still, many families, particularly those with young children or babies, may want to consider a fuller range of possible schools. It’s the rare family that knows which universities will make Baby’s eventual wish list.

Still, some families can narrow their scope early on. Is the child a legacy at a particular university? What are the desirable schools within the family’s geographic region? Do family members more commonly choose a private or public education? Once a family has considered the options, they can get an estimate of projected college costs by plugging their personal information into one or more of the following calculators:

• The Federal Student Aid Estimator, which generates  a projection of what a family’s Expected Family Contribution (EFC) might be for the coming year;
• MyinTuition, a college cost estimator that aggregates current cost data for dozens of sought-after schools;
• The US Department of Education Net Price Calculator Center, which aggregates university-specific net price calculators.

Even if a student doesn’t know where they want to go to school, their family can still make a best guess determination of the cost of college. Regional costs vary, as do the costs of private versus public schools, and the level of selectivity factors in as well.

College Tuition Compare analyzes average costs of college by state, presenting the differences between in- and out-of-state tuitions, fees, and living costs. While most families won’t pay the published price, this information can help estimate future costs based on type of school and location.

Some higher-income families skip the FAFSA—the free application for federal student aid—but that may be a mistake. Recent Vanguard research found that some aid may be available for families with incomes up to $275,000, particularly for those with more than one dependent enrolled in college. Based on an analysis of net price estimates from 67 schools, having two children in college at the same time lowered a family’s net cost by an average of 28%. Even the highest-income families in the study saw an average discount of around $10,000. 

Figure 1: Families with one student in college

Figure 2: Families with two students in college

Of course, tuition costs will change during a family’s planning period. Over the past decade, net college costs have risen by an average annual rate of 1.75% for private and 2.28% for public schools. (That compares to an average annual sticker price increase of 2.81% and 2.37% for private and public colleges, respectively.) ¹  Net pricing estimates may act as a better gauge for many families. However, wealthier families, particularly those whose EFC—or, starting in the 2024-2025 school year, student aid index (SAI)— may disqualify them from need-based financial aid, could benefit from an analysis built on the published cost of attendance.

There is little doubt that the college aid equation is complex and presents challenges for families at any stage of the financial planning process. Still, there are considerations, tools, and estimates that can help a family home in on an appropriate net pricing target, which in turn helps them create a plan that is more likely to result in a college nest egg of an appropriate size.

• The early bird gets the advantage, and other tips for college savings
• Financial Planning Perspectives—What’s My target? Estimating college costs