There was an interesting article in a recent NY Times article discussing rising tuition costs for elite universities. Interestingly enough, the gist of this article is that some of these colleges have had to raise tuition to look more attractive to prospective students. The idea here is that the more expensive a college is, the better it must be. This point is highly questionable, at best, and there are far too many variables that need to be considered, but the end result is the same…higher college tuition.

The upside to this recent trend is that colleges have increased the amount of financial aid that they are providing to their students. The NY Times article points out that “73 percent of undergraduates attending private four-year institutions received it in the school year that ended in 2004, not even counting loans.” This is of some comfort, considering the high costs of college, but doesn’t change the fact that college is not cheap.

In order to better prepare for these high costs, whether your child is planning on attending an elite, Ivy League university or a “cheaper” state school, it is best to start saving soon. You should consider opening a 529 college savings plan as soon as your child is born, or at least in the first few years of their life.