The table also assumes no additional investments or earnings once the child starts school, and that investments are made at the beginning of each year. Inc. Now, these are daunting sums. And they pale next to the cost of a private four-year college education. But don't panic. First of all, just as very few people pay all cash for their home, very few people pay all cash for college.
Many families use a combination of savings, loans, and financial aid.
What's more, long-term projections are very sensitive to the underlying assumptions. Let's run another table. Everything is the same. The difference is startling. The table also assumes no additional investments or earnings once the child starts school, and that investments are made at the beginning of each year.