Originally Posted by Wren
And Bostonian, I agree that 7% inflation adjusted might be conservative but tuition increases have been increasing per decade, so I would rather be conservative in college savings account. And there is the impact of foreign universities upping the arms race. There are all these schools in mideast, China and India trying to get on the top 20 list and locals are investing research dollars in them. US schools are going to have a hard time competing with them over the next 10 years, they have very aggressive plans.
According to my earlier quote from the College Board, the gap between college price inflation and general inflation for private schools has been DECREASING over the last few decades (but is still positive).

Quote
Published prices at public four-year institutions rose more
rapidly between 2002-03 and 2012-13 than over either of
the two preceding decades, but the average annual rate
of increase in inflation-adjusted tuition and fees at private
nonprofit four-year institutions declined from 4.6% from
1982-83 to 1992-93, to 3.0% from 1992-93 to 2002-03, and
to 2.4% over the most recent decade.

Last edited by Bostonian; 05/21/13 01:59 PM. Reason: added "for private schools" qualifier