The price of admission, thats our cover story today. Heres an equation for todays college student. The education that theyre paying for is 12 times more expensive than it was just a generation ago. Index to inflation, the cost of Higher Education twice faster than medical costs. And three times as food. 31,000 average. Public university, annual tab is 23,000 for out of state students. Instate residents pay more than 9,000 but two small schools, Utica College in new york and Rosemont College in pennsylvania both slashing tuition by more than 40 . Theyre calling it a tuition reset. A 40 tuition markdown is an almost unbelievable step. How does the math work . Joining us, the leaders of both schools reducing their tuition next year. President of Utica College and dr. Sharon herrsh of rosemont. Thank you for being here today. Our pleasure. Thank you. Todd, lets start with you. Because the idea of being able to cut tuition by 40 , most schools saying theres not a chance they could come up with that. Not that much. How do you actually cut 40 . Whats the math . Well, the math is you reduce your tuition and you reduce your discount rate but the key is you need to guarantee students and family savings. We wouldnt be doing this if not for that. Weve seen prices escalate across the country. Weve had escalations and our family simply are hitting a ceiling that they can no longer affo afford. Were guaranteeing every student family a minimum of 1,000 on average next years freshmen save 6900 in tuition and fees and 8,000 with room and board. Wow. When you hear numbers like that, mentioned youll cut your discounts and i believe rosemont is doing the same thing. What does that mean . The Sticker Price is not what people were already paying . Thats it exactly. We realized that we among so many other colleges were going according to a model that was raising the Sticker Price. At the same time that we had to raise discounts. And so weve gone from a high Sticker Price, high discounts to a lower Sticker Price, low discount rate. And at the same time, we also decided that we wanted to do just more than the Sticker Price. We wanted to actually realize savings for our students. So weve actually cut the costs as well. The Sticker Price is coming down by 40 , but the discounts are coming down too. How much is the actual price that people are paying coming down at rosemont . At rosemont, the average savings will be 815. Over next year. But that ranges according to the individual students packaging anywhere from 100 only to several thousand dollars. Is that based on needs . Yes. Exactly. And a 40 cut in tuition or just more honesty and transparency in pricing . I would say its both. It is both. And thats something both of our schools and many schools are looking at today. Its, Financial Aid is very, very complicated for families. And we really want the price, the cost of education to reflect the prices as much as we possibly can. And thats the key. People ask, why would you do this . We had a record freshman class this year and 15 straight years of record enrollment. 15 and yet i told people, its a very easy answer. Its the only thing to do. The right thing to do. If youre looking at Financial Aid coming down and discounts coming down, ill throw this to both of you. Is that a situation where it means people from lower means have an easier time getting in and a tougher time getting in . I want to figure out whos getting the most help in this scenario. The family with the most needs or the family paying closer to the Sticker Price . The entire range of our students will save money. 93 of our students per year will save between 1,000 and 5,000 per year. And the remainder save 5,000 and up. So the vast varget of omajority significant dollars in this and we really structured it to be the case and we invest 2 million in cash flow instead of putting it into roads and sidewalks and repaving roads. Were going to put that money into guaranteed savings for our students and their families. Sharon . We are doing much the same, but when you said transparent, that was definitely part of our strategy. In doing this reset. Because one of the things that interested us most was a study by sally mae that did a survey, anna edwa annual survey. As of 2013, 53 of respondents said that they would not look beyond Sticker Price. Wow. We were realizing 53 of the potential families were not looking at the Sticker Price beyond the Sticker Price that you know is an artificial inflated Sticker Price. Do you think other schools would do this as well or is there not as much of a cushion to cut some of the other schools . Todd . I think well see some other schools. Ive said at National Meetings that every school has to find their own pathway to affordability and a tuition reset, it takes a certain set of characteristics for an institution be feasible but i think every student ought to be looking for ways to hold down costs for family and students. Todd and sharon, thank you both for joining us today. Thank you very much. Thank you for the opportunity. Byebye. Heres a look at whats making news as we head into a new week on the money. We know the Federal Reserve kept Interest Rates near zero at the last meeting last month. Now we know what they said and why. In the minutes released this week, the federal open Market Committee said it expects to raise Interest Rates sometime this year as one of the two remaining meetings. Members also said they were concerned about slow growth in the Global Economy and inflation was below their target of 2 . The market seemed to like what the fed said. The dow climbing more than 130 points on thursday. With the s p 500 and the nasdaq advancing as well during a strong week and stocks continued to rise on friday. It could be a busy Holiday Shopping season. The National Retail federation came out with annual forecast and predicted an increase of 3. 7 over last year to a total of 630 billion. Holiday shopping always closely watched because consumers make more than twothirds of the economy. You might call it the Great Pumpkin shortage of 2015. Record rainfall in the midwest washed out a chunk of the crop and experts say it shouldnt impact halloween but by the time thanksgiving rolls around, you might have a tough time shopping for the canned crop. Up next on the money, a site that lets teachers run fulltime businesses without leaving the classroom. And later, if you think youve got enough saved for retirement, you may want to think again. The one cost many havent factored in and its a biggie. Right now as we head to the break, a look at how the stock market ended the week. Im theres no place like it in the world. Come fall, i like to get a taste of everything the state has to offer. Like this famous winery nestled in the hudson valley. Or the awardwinning vineyards of long island. This cooperstown brewery belongs in every beer lovers hall of fame. You can even try new yorks exceptional cider and spirits. This fall, drink in the beauty of new york state. Plan your trip at iloveny. Com. Theres something for everyone. Imagine selling at teachers. Teachers pay teachers and watson is one of a thousand sellers. I want to welcome both of you. Its great to be here. Explain how this works. Online marketplace where teachers can choose to sell lesson plans to other teachers . Its more than lesson plans. Anything the teacher can use in the classroom. Something classroom tested, teacher can take the material and make it available for all the teachers around the world to use. We have three and a half million teachers in our community who are buying, selling, and sharing great resources with each other. Whats the cost for, lets say, a lesson plan . About 5 and every teacher who puts up something for sale has to put something up for free. We think teachers dont have a lot of extra money and make sure every dollar spent is a dollar well spent. How did you get attracted to this . Ive always loved creating curricular resources for my students. Did it for many years and i did it for the love of it and never had an idea it would be impossible to actually be compensated for the time and share what i did with other teachers. My mom was a teacher too. I kind of thought thats what every classroom teacher did. I thought thats where you figure out the ethics of it. Is it weird . Because students cant go online and buy somebody elses paper. This is slightly different but how do you come down on the ethics whether its okay for another teacher to use it . Teachers are responsible for other lesson plans. Its a lot of supplemental resources. So while teachers will develop their own lesson plans, theyll still need the actual activities to use with students. And this is something that teachers have been collaborating with on for many years before there was even an online marketplace. We had ideas within the school and go to a local Teacher Supply store and buy a resource book. You might have to spend 25 to get three or four pages that you needed. So raeally, its making it easier, faster and cheaper to do what teachers have been doing for years which is sharing practices with each other. I know the business struggled at first. They sold it back to scholastic and taken private in 2009. You said the business didnt really take off until 2011. Teachers pay teachers found by a new york city teacher and stuck with it through. He chairs the board now. In 2011, we saw dynamic teachers come on to the site and start sharing their lessons and their ideas. And really creating a community. So were a marketplace, but really a community of teachers coming together. I think what made the site take off, where can you go and buy something and if you have a question about it, just go ask the person who created it. If you buy something from angela, shes going to tell you how to use it and update if it needs updating. They start to build an incredible world of content constantly up daytdatinupdating. If you build it, they will come but needed the content first. We theneeded Great Teachers create this community. How do you make money . Teachers put something up for sale take 85 of the proceeds of the sale and we take 15 to keep the lights on and run the site. As a parent, can i go on . Absolutely. We have parents coming on and School Administrators coming on and home schooling parents and people around the world now coming on to the site. Adam, angelo, i want to thank you both. Thank you for having us. Appreciate it. Up next, we are on the money. Retirement sticker shock. The one thing you may not have planned for when you get to retirement and it could have a really big price tag. Later, john faogerty shares some of the biggest Lessons Learned in the music business. Dont take any advice like its more than a network in the cloud. Its reliable up time. Add multilayered security. Its how you stay connected to each other and your customers. With zencenturylinzenccenturyli industry leading Broadband Network and included and hosting services with dedicated responsive support with centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink, your link to whats next. You may think youre good in retirement. Sharon epperson with a look at the statistics and solutions to help retirees prepare for one of the biggest expenses theyll ever have. This is one of the numbers where, okay, you know you have to figure out how long youre going to live just to figure out retirement but figure out how healthy you may or may not be, that seems almost impossible task. Its almost impossible but maintain a Healthy Lifestyle right now and continue that in retirement, probably the place to start. But whats startling is the number that youre going to have to come up with in retirement. For couples 65 years old, theyll have to have 245,000 just to Cover Health Care costs in retirement. By the way, thats assuming that you dont need an old age home. This does not include longterm care or nursing home care at all. What it does cover are the premiums youll have to pay. Even though it doesnt cover everything and out of pocket costs for prescription drugs perhaps that arent covered and deductibles, things like that. Are the statistics different for men and women . They are. Of course, because women live longer, average Life Expectancy is 87. Pay 130,000 compared to 115,000 for a man whose Life Expectancy is about 85 years old. Whatever youre saving, better think again and save more. You should save a lot more and for some people, it may go up more because Medicare Part b covers doctors visits and such, those next year, you could see a greater increase with the new rules play into effect if you havent gotten your Social Security benefits yet. You could see change there is and medicare enrollees could see an increase. That will be more substantial. Another reason to save as much as you can now. Its kind of hard to get your head around all of this, but someone trying to figure out how to manage these costs, what should they do . Its a great calculator at aarp. Org. They have great information. Also, you just need to start now thinking now and saving now. If youre thinking im just putting in to the company, matching my 401 k and thats enough, no. Put in as much as you can. Maximize the accounts available now to save for retirement while still working. Your 401 k , ira, Health Savings account before you hit 65 or go to medicare. Make sure you have that savings. But the most important thing to start off saying, how do you determine your health care . Think about that now. How do you use health care . Go a lot, not too frequently, how healthy are you and how to get healthier . Exercise, eat right. Do the right things. Excellent advice, thank you. Big wheels keep on turning. John fogerty with the inspiration of one of the biggest songs of his career. The words proud mary came in my head. For more on our show and guests, you can go to our web site. Otm. Cnbc. Com and follow us on twitter onthemoney. Heres some stories that may impact your money season this week. Well hear from bank of america, j. P. Morgan chase, wells fargo and citi. Monday is columbus day. The stock market is open, the banks have the option of closing. Anchors away on tuesday. The u. S. Navy celebrating its 240th anniversary. On wednesday, the beige book is released. Thats a survey of Economic Activity across the country. On wednesday, retail sales and always closely watched because consumers are such a big part of the u. S. Economy. Proud mary, bad moon rising. Ever seen the rain. Those are the hits from credence cle wau clearwater revival. John fogerty talks about the lessons he learned from signing a deal that cost him millions to writing songs that sold millions. I loved your songs for years. I didnt realize the story behind it until the book came out. I think what stuns me more than anything, i knew music record labels to be bad guys but you may have met the worst one on the planet. I know there are a lot of other people that were victims, i guess youd say. Certainly, this story could be a poster child for what can go wrong when you get with the record company. What happened in this situation . Because when we were looking around, we cant even play of your music that we all know so well because youre not the owner of the music. Well, you know, i never did own the songs. We signed a bad contract before i actually emerged as the main songwriter and the guy putting out all those hits. So it sort of, in other words, they werent given away. I never had them in the first place. What happened though . How did they convince you to sign it . At the time, you werent known as credence clearwater revival. No, we had signed with the prior owners of fantasy records, and at some point, our first single was ready. We opened the box and it says, the gollywogs. I figured it was a joke, some kind of typo. So the first thing we asked when the new ownership took over, we said, we want a new name. They said yes, but it comes with a new contract. Yes, said he wanted to sign our band. I remember doug, the drummer, saying, well, weve been at this a while. What will happen if we actually have success . We havent had much. Said well tear up this contract and make a new contract and you will all share equally. You know . I remember that. But of course, that didnt happen. Where have you found some of your inspiration . Proud mary, is that just a phrase that popped up in your head . Yeah, back in the 60s. I had actually decided to get more organized. I went and got a little notebook, a little binder and filled it with paper and got ready for an inspiration. I had written on the very first page song titles. And then a few days later, the words proud mary came in my head. It sounded kind of cool. But i didnt know what it meant. It wasnt a girlfriend or a friend . I didnt even know who or what would be this proud mary, but that was the way it came into my head. You know . So i went to the little notebook and wrote it on the very first line. Thats the first entry in my song title book. But you didnt write the song immediately . It was months later. If you had a lesson to offer a Young Musician today, Somebody Just starting out, what would you tell them. Make sure you understand the details before you sign anything. I go back over so many of the iconic songs youve written. Songs, i probably hear you songs on a daily basis practically. How often do you hear them and what do you think about when you hear them . I hear them a lot now. Im very happy now when i hear them. You know, life is really great.