It doesn’t take a degree in finance to see the cost of college continues to rise.

In its 2017 report, the College Board showed that public four-year institutions raised prices an average of 3.2% annually between the 2007-08 and 2017-18 school years. Put another way, a $5,000 education in 2007-08 would cost $6,851 in 2017-18.

For a few families, the lion’s share of education costs falls on parents and, in some cases, on grandparents. For our Ernst & Young clients who are parents you may already know, generally, the majority of families rely on a combination of scholarships, grants, financial aid, part-time jobs, and parent support to help pay the cost.

For Ernst & Young employees who have children approaching college age, a good first step is estimating the potential costs. The accompanying worksheet can help you get a better idea about the cost of a four-year college.

For Ernst & Young employees who already put money away for college, the worksheet will take that amount into consideration. For Ernst & Young employees who haven’t, it’s never too late to start.

Resources

There are a number of resources that can help individuals prepare for college. The U.S. government distributes certain information on colleges and costs. Here are two sites for these Ernst & Young employees to consider reviewing:

www.studentaid.ed.gov
The government’s college and financial aid portal.

Before finalizing any estate plan, it is worth examining how Ernst & Young's employer-sponsored benefits fit into the broader picture. According to publicly available information, Ernst & Young maintains an active defined benefit pension plan, which provides retirement income based on factors such as years of service and compensation history. Ernst & Young does not appear to offer a formal retiree healthcare program, making healthcare coverage planning an important consideration if you retire before age 65. Because the specifics of your pension formula, vesting schedule, and benefit eligibility depend on your individual employment history and plan documents, We encourage you to review your Summary Plan Description (SPD) or speak with Ernst & Young's HR or benefits team for the most current details.