BOSTON — The rising cost of college has long been a concern, but recent findings reveal that many students are actually paying less to attend public universities than they did ten years ago. In fact, after a significant period of steep increases, tuition hikes at private institutions are finally slowing down.
According to the data compiled by the College Board, the average tuition fee for an in-state public university is currently $11,610. This figure reflects a 4% decrease when adjusted for inflation compared to a decade ago. The more striking reduction, however, lies in the actual amount students are required to pay after receiving grants and financial aid, which has plummeted by 40% over ten years, decreasing from $4,140 to $2,480 per year.
This decline in costs correlates with a decrease in debt among graduates. Almost 50% of students attending in-state public universities now graduate with debt, down from 59% ten years ago, and among those who do borrow, the average loan amount has decreased by 17%, reaching $27,100.
For private colleges, while tuition has continued to increase, the pace has notably slowed. Over the past decade, tuition rose by just 4% when adjusted for inflation, averaging at $43,350. This is a significant contrast to the two preceding decades when tuition costs surged by 68%.
This decline in costs comes at a time when many are questioning the value of a college education. Surveys reveal heightened skepticism about the benefits of earning a degree, and the percentage of high school graduates opting for college has dropped to levels not seen in several decades, according to data from the U.S. Bureau of Labor Statistics.
Despite the doubts, research indicates that earning a degree still pays dividends over time. Individuals with a bachelor’s degree can expect to earn a median of $2.8 million throughout their careers, which is 75% more than those with only a high school diploma, according to findings from Georgetown University’s Center on Education and the Workforce.
The COVID-19 pandemic has significantly influenced the reduction in costs, according to Jennifer Ma, an executive research scientist at the College Board and lead author of the study. Ma noted that many colleges—both public and private—froze their tuition during the pandemic. She also pointed out that federal and state governments responded with increased funding for higher education, which empowered institutions to lower their attendance costs. However, some of this funding has since ended, including the federal pandemic assistance that was largely depleted by late 2022.
Cost considerations played a major role in the decision-making process for students like Kai Mattinson, who chose Northern Arizona University over others due to financial factors. While the full cost of attendance is about $39,000, scholarships and discounts allow her to pay only between $15,000 and $20,000 as a senior.
Many institutions have taken measures to prevent cost increases. For instance, Purdue University in Indiana has kept its in-state tuition frozen at $9,992 for thirteen consecutive years. Mark Becker, the president of the Association of Public and Land-grant Universities, expressed satisfaction with the findings, noting that institutional cost management, alongside state and federal support for public universities and investments in Pell Grants, has improved college affordability and made strides in addressing student debt.
Costs have also decreased significantly for students enrolled in public two-year community colleges; average expenses have fallen by 9% over the past decade, aligning with federal statistics provided by the National Center for Education Statistics.
Nonetheless, parents footing the bill for children attending out-of-state public universities or private colleges still face overwhelming costs, which can soar to as high as $95,000 annually in certain cases. Many institutions attempt to mitigate these expenses by offering substantial discounts to middle- and lower-income students.
Some private colleges, such as the Massachusetts Institute of Technology, have announced initiatives to waive tuition for undergraduates from families earning below $200,000, starting in the fall. As competition intensifies within the educational sector, many private colleges are also reducing tuition prices as a strategy to attract students. They are confronted with a shrinking demographic of young adults and a growing hesitance among prospective students to incur substantial debt. To sustain operations and manage rising costs after benefiting from temporary federal relief during the pandemic, many colleges have resorted to program cuts.
