Over the past six decades, the landscape of higher education has evolved in countless ways— from the diversity of student populations to the integration of technology in the classroom. Yet, one of the most alarming and frequently discussed changes has been the skyrocketing cost of attending college. As we delve into the data and compare the figures, it becomes evident how dramatically the financial burden on students and their families has amplified, creating a paradigm shift in how society approaches, values, and funds tertiary education.
This BrokeScholar report seeks to shed light on the magnitude of these changes and explore the underlying reasons and potential ramifications for future generations.
Table of Contents
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Average Cost of College in America Is Far More Expensive Than Other Developed Countries
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What Causes Tuition to Rise for Public Schools vs. Private Schools?
Average Cost of College in America Is Far More Expensive Than Other Developed Countries
The United States spends more on college than almost any other country, according to a 2019 report by the Organization for Economic Cooperation and Development (OECD). Taking together the contributions of individual families and the government — through student loans, grants and other assistance — Americans spend about $30,000 per student a year, which is almost double the average amount for a developed country. What’s equally concerning is that, for all this expenditure on education, there is virtually no connection to the value that students could possibly get in exchange for the high costs.
Higher education costs held relatively stable for much of the 1960s and 1970s. It was the 1980s that really witnessed the lift-off of tuition costs, among other expenses. Using data sourced from the National Center for Education Statistics (NCES), we analyzed in detail the inexorable rise in the cost of college over the last 40 years. And it should be noted: All the dollar figures we use are in constant 2021-2022 dollars, meaning, inflation is not responsible for the increasing costs year over year.
The Rise in Average College Tuition and Fees
When looking at tuition and fees over the last 60 years, the rise in college costs is truly remarkable. In order to make the data more readily understandable, we've broken it out into several categories:
Annual Tuition and Required Fees at All 4-Year Institutions
For higher education institutions that are four-year colleges, though they can be either public or private schools, from the academic year 1963-1964 to 2021-2022, the cost of tuition and required fees has increased by more than 241% — and that's in inflation-adjusted dollars. A percentage growth of 241% means that the cost has more than tripled.
All 4-Year Institutions |
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Academic Year | Cost of Tuition and Required Fees: Constant 2021-2022 $ | YOY Change (%) |
1963-1964 | $5,053 | — |
1968-1969 | $5,403 | 6.9% |
1969-1970 | $5,637 | 4.3% |
1970-1971 | $5,777 | 2.5% |
1971-1972 | $5,931 | 2.7% |
1972-1973 | $6,261 | 5.6% |
1973-1974 | $5,956 | -4.9% |
1974-1975 | $5,489 | -7.8% |
1975-1976 | $5,457 | -0.6% |
1976-1977 | $5,855 | 7.3% |
1977-1978 | $5,815 | -0.7% |
1978-1979 | $5,751 | -1.1% |
1979-1980 | $5,496 | -4.4% |
1980-1981 | $5,465 | -0.6% |
1981-1982 | $5,716 | 4.6% |
1982-1983 | $6,147 | 7.6% |
1983-1984 | $6,494 | 5.6% |
1984-1985 | $6,846 | 5.4% |
1985-1986 | $7,216 | 5.4% |
1986-1987 | $7,713 | 6.9% |
1987-1988 | $7,793 | 1.0% |
1988-1989 | $8,080 | 3.7% |
1989-1990 | $8,441 | 4.5% |
1990-1991 | $8,443 | 0.0% |
1991-1992 | $8,949 | 6.0% |
1992-1993 | $9,403 | 5.1% |
1993-1994 | $9,874 | 5.0% |
1994-1995 | $10,108 | 2.4% |
1995-1996 | $10,562 | 4.5% |
1996-1997 | $10,859 | 2.8% |
1997-1998 | $11,073 | 2.0% |
1998-1999 | $11,523 | 4.1% |
1999-2000 | $11,729 | 1.8% |
2000-2001 | $11,874 | 1.2% |
2001-2002 | $12,323 | 3.8% |
2002-2003 | $12,867 | 4.4% |
2003-2004 | $13,683 | 6.3% |
2004-2005 | $14,280 | 4.4% |
2005-2006 | $14,568 | 2.0% |
2006-2007 | $15,101 | 3.7% |
2007-2008 | $15,260 | 1.1% |
2008-2009 | $15,826 | 3.7% |
2009-2010 | $16,141 | 2.0% |
2010-2011 | $16,514 | 2.3% |
2011-2012 | $16,820 | 1.9% |
2012-2013 | $17,188 | 2.2% |
2013-2014 | $17,479 | 1.7% |
2014-2015 | $17,823 | 2.0% |
2015-2016 | $18,160 | 1.9% |
2016-2017 | $18,028 | -0.7% |
2017-2018 | $18,099 | 0.4% |
2018-2019 | $18,169 | 0.4% |
2019-2020 | $18,251 | 0.5% |
2020-2021 | $17,806 | -2.4% |
2021-2022 | $17,251 | -3.1% |
In the academic year 2019-2020, the same period that witnessed the onslaught of the Covid pandemic hiting the US, mainly beginning in March 2020, the cost of tuition and required fees at all four-year colleges and universities reached a historic peak of $18,251. The growth in tuition costs from 1963-1964 to 2019-2020 was an incredible 261.2%.
Annual Tuition and Required Fees at Public 4-Year Institutions
One of the more interesting findings is that the cost of tuition and fees at public four-year schools has risen markedly more than private four-year nonprofit colleges and universities. While private schools still widely lead public schools in the tuition amount, the increase of 331.2% for public four-year colleges means they’ve more than quadrupled since 1963-1964. And, again, these dollar figures are all inflation-adjusted.
Public 4-Year Institutions |
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Academic Year | Cost of Tuition and Required Fees: Constant 2021-2022 $ | YOY Change (%) |
1963-1964 | $2,225 | — |
1968-1969 | $2,538 | 14.1% |
1969-1970 | $2,675 | 5.4% |
1970-1971 | $2,795 | 4.5% |
1971-1972 | $2,932 | 4.9% |
1972-1973 | $3,311 | 13.0% |
1973-1974 | $3,107 | -6.2% |
1974-1975 | $2,790 | -10.2% |
1975-1976 | $2,757 | -1.2% |
1976-1977 | $2,963 | 7.5% |
1977-1978 | $2,948 | -0.5% |
1978-1979 | $2,831 | -4.0% |
1979-1980 | $2,679 | -5.4% |
1980-1981 | $2,617 | -2.3% |
1981-1982 | $2,726 | 4.2% |
1982-1983 | $2,964 | 8.7% |
1983-1984 | $3,180 | 7.3% |
1984-1985 | $3,274 | 3.0% |
1985-1986 | $3,415 | 4.3% |
1986-1987 | $3,584 | 5.0% |
1987-1988 | $3,743 | 4.4% |
1988-1989 | $3,831 | 2.4% |
1989-1990 | $3,953 | 3.2% |
1990-1991 | $3,976 | 0.6% |
1991-1992 | $4,320 | 8.6% |
1992-1993 | $4,648 | 7.6% |
1993-1994 | $4,893 | 5.3% |
1994-1995 | $5,027 | 2.7% |
1995-1996 | $5,198 | 3.4% |
1996-1997 | $5,302 | 2.0% |
1997-1998 | $5,422 | 2.3% |
1998-1999 | $5,534 | 2.1% |
1999-2000 | $5,579 | 0.8% |
2000-2001 | $5,638 | 1.1% |
2001-2002 | $5,912 | 4.8% |
2002-2003 | $6,266 | 6.0% |
2003-2004 | $6,951 | 10.9% |
2004-2005 | $7,395 | 6.4% |
2005-2006 | $7,584 | 2.5% |
2006-2007 | $7,828 | 3.2% |
2007-2008 | $7,917 | 1.1% |
2008-2009 | $8,293 | 4.7% |
2009-2010 | $8,740 | 5.4% |
2010-2011 | $9,098 | 4.1% |
2011-2012 | $9,559 | 5.1% |
2012-2013 | $9,838 | 2.9% |
2013-2014 | $9,977 | 1.4% |
2014-2015 | $10,180 | 2.0% |
2015-2016 | $10,390 | 2.1% |
2016-2017 | $10,233 | -1.5% |
2017-2018 | $10,271 | 0.4% |
2018-2019 | $10,258 | -0.1% |
2019-2020 | $10,250 | -0.1% |
2020-2021 | $10,047 | -2.0% |
2021-2022 | $9,596 | -4.5% |
Another thing to note is that tuition and fees actually dropped from 1971-72 to 1981-82. In fact, between those academic years, costs of tuition and fees bounced up and down from year to year. Then, beginning in 1981-82, college tuition costs have inexorably risen year over year, with private four-year colleges experiencing a drop in costs only once since 1981-82 but before the pandemic — in the academic year 2016-2017. It may not be a coincidence that wealth inequality too began its inexorable and relentless rise since the early 1980s.
Annual Tuition and Required Fees at Private 4-Year Institutions
As mentioned, the growth in tuition rates at four-year public colleges over the last 60 years has exceeded that of four-year private colleges: 331.2% versus 268.3%, respectively. The overall trend with four-year private colleges and universities is comparable to public institutions, with the 1980s really marking the start of near-constant year over year increases.
Private 4-Year Institutions |
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Academic Year | Cost of Tuition and Required Fees: Constant 2021-2022 $ | YOY Change (%) |
1963-1964 | $9,243 | — |
1968-1969 | $11,205 | 21.2% |
1969-1970 | $11,661 | 4.1% |
1970-1971 | $12,114 | 3.9% |
1971-1972 | $12,557 | 3.7% |
1972-1973 | $12,836 | 2.2% |
1973-1974 | $12,367 | -3.7% |
1974-1975 | $11,601 | -6.2% |
1975-1976 | $11,652 | 0.4% |
1976-1977 | $12,176 | 4.5% |
1977-1978 | $12,159 | -0.1% |
1978-1979 | $12,178 | 0.2% |
1979-1980 | $11,716 | -3.8% |
1980-1981 | $11,775 | 0.5% |
1981-1982 | $12,327 | 4.7% |
1982-1983 | $13,330 | 8.1% |
1983-1984 | $14,112 | 5.9% |
1984-1985 | $14,815 | 5.0% |
1985-1986 | $15,863 | 7.1% |
1986-1987 | $16,882 | 6.4% |
1987-1988 | $17,325 | 2.6% |
1988-1989 | $17,969 | 3.7% |
1989-1990 | $18,649 | 3.8% |
1990-1991 | $19,128 | 2.6% |
1991-1992 | $19,915 | 4.1% |
1992-1993 | $20,369 | 2.3% |
1993-1994 | $21,125 | 3.7% |
1994-1995 | $21,528 | 1.9% |
1995-1996 | $22,349 | 3.8% |
1996-1997 | $22,861 | 2.3% |
1997-1998 | $23,268 | 1.8% |
1998-1999 | $23,950 | 2.9% |
1999-2000 | $24,349 | 1.7% |
2000-2001 | $24,919 | 2.3% |
2001-2002 | $25,657 | 3.0% |
2002-2003 | $26,058 | 1.6% |
2003-2004 | $26,920 | 3.3% |
2004-2005 | $27,371 | 1.7% |
2005-2006 | $27,341 | -0.1% |
2006-2007 | $28,345 | 3.7% |
2007-2008 | $28,544 | 0.7% |
2008-2009 | $28,957 | 1.4% |
2009-2010 | $28,978 | 0.1% |
2010-2011 | $28,928 | -0.2% |
2011-2012 | $29,079 | 0.5% |
2012-2013 | $29,894 | 2.8% |
2013-2014 | $30,855 | 3.2% |
2014-2015 | $31,862 | 3.3% |
2015-2016 | $33,072 | 3.8% |
2016-2017 | $34,258 | 3.6% |
2017-2018 | $34,920 | 1.9% |
2018-2019 | $35,504 | 1.7% |
2019-2020 | $35,922 | 1.2% |
2020-2021 | $35,076 | -2.4% |
2021-2022 | $34,041 | -2.9% |
Annual Tuition and Required Fees at All 2-Year Institutions
The rate of growth in college costs at two-year institutions of higher education is less than its four-year college counterparts, but still quite high at 146.5% from 1963-1964 to 2021-2022.
All 2-Year Institutions |
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Academic Year | Cost of Tuition and Required Fees: Constant 2021-2022 $ | YOY Change (%) |
1963-1964 | $1,566 | — |
1968-1969 | $1,980 | 26.4% |
1969-1970 | $1,847 | -6.7% |
1970-1971 | $1,771 | -4.1% |
1971-1972 | $1,719 | -2.9% |
1972-1973 | $1,890 | 9.9% |
1973-1974 | $1,987 | 5.1% |
1974-1975 | $1,784 | -10.2% |
1975-1976 | $1,511 | -15.3% |
1976-1977 | $1,660 | 9.9% |
1977-1978 | $1,703 | 2.6% |
1978-1979 | $1,692 | -0.7% |
1979-1980 | $1,638 | -3.2% |
1980-1981 | $1,712 | 4.5% |
1981-1982 | $1,767 | 3.2% |
1982-1983 | $1,939 | 9.7% |
1983-1984 | $2,024 | 4.4% |
1984-1985 | $2,190 | 8.2% |
1985-1986 | $2,303 | 5.2% |
1986-1987 | $2,275 | -1.2% |
1987-1988 | $1,970 | -13.4% |
1988-1989 | $2,279 | 15.7% |
1989-1990 | $2,172 | -4.7% |
1990-1991 | $2,290 | 5.5% |
1991-1992 | $2,427 | 6.0% |
1992-1993 | $2,524 | 4.0% |
1993-1994 | $2,698 | 6.9% |
1994-1995 | $2,789 | 3.4% |
1995-1996 | $2,779 | -0.4% |
1996-1997 | $2,738 | -1.4% |
1997-1998 | $2,955 | 7.9% |
1998-1999 | $2,957 | 0.1% |
1999-2000 | $2,878 | -2.7% |
2000-2001 | $2,735 | -5.0% |
2001-2002 | $2,848 | 4.1% |
2002-2003 | $2,948 | 3.5% |
2003-2004 | $3,295 | 11.8% |
2004-2005 | $3,440 | 4.4% |
2005-2006 | $3,425 | -0.4% |
2006-2007 | $3,448 | 0.7% |
2007-2008 | $3,352 | -2.8% |
2008-2009 | $3,438 | 2.6% |
2009-2010 | $3,804 | 10.6% |
2010-2011 | $3,903 | 2.6% |
2011-2012 | $4,021 | 3.0% |
2012-2013 | $4,049 | 0.7% |
2013-2014 | $4,044 | -0.1% |
2014-2015 | $4,039 | -0.1% |
2015-2016 | $4,038 | 0.0% |
2016-2017 | $4,090 | 1.3% |
2017-2018 | $4,021 | -1.7% |
2018-2019 | $3,967 | -1.3% |
2019-2020 | $3,971 | 0.1% |
2020-2021 | $4,053 | 2.1% |
2021-2022 | $3,859 | -4.8% |
Annual Tuition and Required Fees at Public 2-Year Institutions
On the other hand, the rise in tuiton costs at public two-year colleges has experienced growth rates very much on par with its four-year public college counterparts. From the academic year 1963-1964 to 2021-2022, the annual cost of tuition and required fees at public two-year institutions has increased by 301.8%, equivalent to quadrupling.
Public 2-Year Institutions |
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Academic Year | Cost of Tuition and Required Fees: Constant 2021-2022 $ | YOY Change (%) |
1963-1964 | $887 | — |
1968-1969 | $1,344 | 51.5% |
1969-1970 | $1,329 | -1.1% |
1970-1971 | $1,328 | -0.1% |
1971-1972 | $1,316 | -0.9% |
1972-1973 | $1,535 | 16.7% |
1973-1974 | $1,657 | 8.0% |
1974-1975 | $1,508 | -9.0% |
1975-1976 | $1,246 | -17.4% |
1976-1977 | $1,362 | 9.3% |
1977-1978 | $1,380 | 1.3% |
1978-1979 | $1,347 | -2.4% |
1979-1980 | $1,289 | -4.3% |
1980-1981 | $1,273 | -1.2% |
1981-1982 | $1,302 | 2.3% |
1982-1983 | $1,359 | 4.4% |
1983-1984 | $1,463 | 7.6% |
1984-1985 | $1,557 | 6.4% |
1985-1986 | $1,661 | 6.7% |
1986-1987 | $1,674 | 0.8% |
1987-1988 | $1,718 | 2.6% |
1988-1989 | $1,699 | -1.1% |
1989-1990 | $1,679 | -1.2% |
1990-1991 | $1,736 | 3.3% |
1991-1992 | $1,911 | 10.1% |
1992-1993 | $2,029 | 6.2% |
1993-1994 | $2,169 | 6.9% |
1994-1995 | $2,236 | 3.1% |
1995-1996 | $2,262 | 1.2% |
1996-1997 | $2,264 | 0.1% |
1997-1998 | $2,291 | 1.2% |
1998-1999 | $2,274 | -0.8% |
1999-2000 | $2,245 | -1.3% |
2000-2001 | $2,146 | -4.4% |
2001-2002 | $2,184 | 1.7% |
2002-2003 | $2,297 | 5.2% |
2003-2004 | $2,579 | 12.3% |
2004-2005 | $2,720 | 5.4% |
2005-2006 | $2,743 | 0.8% |
2006-2007 | $2,787 | 1.6% |
2007-2008 | $2,742 | -1.6% |
2008-2009 | $2,806 | 2.3% |
2009-2010 | $2,971 | 5.9% |
2010-2011 | $3,114 | 4.8% |
2011-2012 | $3,286 | 5.5% |
2012-2013 | $3,403 | 3.6% |
2013-2014 | $3,457 | 1.6% |
2014-2015 | $3,521 | 1.8% |
2015-2016 | $3,596 | 2.1% |
2016-2017 | $3,669 | 2.0% |
2017-2018 | $3,685 | 0.4% |
2018-2019 | $3,688 | 0.1% |
2019-2020 | $3,702 | 0.4% |
2020-2021 | $3,755 | 1.4% |
2021-2022 | $3,564 | -5.1% |
Annual Tuition and Required Fees at Private 2-Year Institutions
By contrast, the 60-year change in tuition costs at two-year private colleges has been less than that of public two-year colleges: 182.4% versus 301.8%, respectively.
Private 2-Year Institutions |
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Academic Year | Cost of Tuition and Required Fees: Constant 2021-2022 $ | YOY Change (%) |
1963-1964 | $5,871 | — |
1968-1969 | $7,559 | 28.8% |
1969-1970 | $7,720 | 2.1% |
1970-1971 | $7,873 | 2.0% |
1971-1972 | $8,032 | 2.0% |
1972-1973 | $8,044 | 0.1% |
1973-1974 | $7,882 | -2.0% |
1974-1975 | $7,444 | -5.6% |
1975-1976 | $7,257 | -2.5% |
1976-1977 | $7,650 | 5.4% |
1977-1978 | $7,680 | 0.4% |
1978-1979 | $7,538 | -1.8% |
1979-1980 | $7,490 | -0.6% |
1980-1981 | $7,856 | 4.9% |
1981-1982 | $7,806 | -0.6% |
1982-1983 | $8,643 | 10.7% |
1983-1984 | $8,587 | -0.7% |
1984-1985 | $9,293 | 8.2% |
1985-1986 | $9,517 | 2.4% |
1986-1987 | $9,340 | -1.9% |
1987-1988 | $10,130 | 8.5% |
1988-1989 | $11,211 | 10.7% |
1989-1990 | $11,542 | 3.0% |
1990-1991 | $11,730 | 1.6% |
1991-1992 | $11,742 | 0.1% |
1992-1993 | $11,989 | 2.1% |
1993-1994 | $12,286 | 2.5% |
1994-1995 | $12,965 | 5.5% |
1995-1996 | $12,950 | -0.1% |
1996-1997 | $12,843 | -0.8% |
1997-1998 | $13,015 | 1.3% |
1998-1999 | $13,461 | 3.4% |
1999-2000 | $13,702 | 1.8% |
2000-2001 | $14,604 | 6.6% |
2001-2002 | $15,948 | 9.2% |
2002-2003 | $16,495 | 3.4% |
2003-2004 | $17,497 | 6.1% |
2004-2005 | $17,834 | 1.9% |
2005-2006 | $17,645 | -1.1% |
2006-2007 | $17,556 | -0.5% |
2007-2008 | $17,489 | -0.4% |
2008-2009 | $17,825 | 1.9% |
2009-2010 | $19,340 | 8.5% |
2010-2011 | $17,460 | -9.7% |
2011-2012 | $17,303 | -0.9% |
2012-2013 | $17,248 | -0.3% |
2013-2014 | $17,008 | -1.4% |
2014-2015 | $16,994 | -0.1% |
2015-2016 | $17,195 | 1.2% |
2016-2017 | $16,956 | -1.4% |
2017-2018 | $16,929 | -0.2% |
2018-2019 | $17,505 | 3.4% |
2019-2020 | $17,357 | -0.8% |
2020-2021 | $16,583 | -4.5% |
2021-2022 | $16,579 | 0.0% |
It should be noted that these costs do not include key expenses like room and board — including those into the overall cost of attendance really boggles the mind.
Causes of Rising Tuition Costs Since the 1980s
So, what happened in the 1980s that set college tuition costs off on their unstoppable rise? A study from 1990 entitled, “The College Tuition Spiral: An Examination of Why Charges Are Increasing,” has some insight into the reasons for the increase. According to the report, the rapid rise in college costs during the 1980s came about because schools aimed to compete for students by improving quality rather than lowering prices. At the time, colleges and universities were very concerned that the smaller pool of college-age students in the 1980s would result in school closings and mergers. Thus, schools embarked on a strategy of competing for students by offering more financial aid and better facilities and services, which led to higher tuitions to cover the costs of increased quality. In the past, such as in the 1960s and 1970s when pools of college-age people were larger, colleges and universities spread out costs over a larger number of students whereas, in the 1980s, this option was no longer available to schools.
The pool of college-age people and the percentage of people who have completed increased again in the 1990s and 2000s, surpassing their previous peak in the 1970s. But in a culture and system where having a bachelor’s degree is now a minimum requirement for so many entry-level positions, more young people than ever are set on graduating from college. This trend has caused both increased competition among students to get into colleges and increased competition among schools to get the best candidates. The continual improvements in the quality of colleges have served to constantly push tuition costs and fees higher year after year. However, with real household incomes stagnating over the last couple decades, more students have to take out student loans, and in greater amounts, to keep up with rising college costs.
What Causes Tuition to Rise for Public Schools vs. Private Schools?
The rise in college tuition over the past several decades is a multifaceted issue that can't be pinned down to a single cause. However, when examining the disparity between the growth rates of tuition at public four-year colleges versus private ones in the U.S., several key factors stand out:
- State Funding Cuts: One of the primary drivers for the surge in tuition at public universities is the reduction in state funding. Historically, state governments significantly subsidized public colleges and universities. Over time, especially during economic downturns, many states have cut higher education funding. These cuts were often not restored even when the economy improved. As a result, the institutions had to shift the financial burden to students in the form of higher tuition fees.
- Operational Costs: Public colleges, especially state flagships, have faced rising operational costs due to expanded research endeavors, administrative growth, facility maintenance, and other institutional ambitions. With reduced state support, these costs are more directly passed on to students.
- Demand and Enrollment: Public universities, given their affordability compared to private counterparts, have seen increasing demand and enrollment. While this surge in interest is positive, it also means that these institutions need to expand infrastructure, hire more staff, and cater to a larger student body, all of which can lead to increased costs.
- Tuition Deregulation: Some states have given public colleges more autonomy in setting their tuition, a phenomenon known as tuition deregulation. This has sometimes led to rapid increases in tuition as schools sought to make up for decreased state funding or to match the perceived value and reputation of higher-priced private institutions.
- Financial Aid Shift: Private institutions often have larger endowments and, in some cases, have been able to offer more substantial financial aid packages. This can give the illusion of a slower tuition growth rate when, in reality, the sticker price might be rising, but the effective price after financial aid might not rise as steeply.
- Baseline Differences: It's also important to consider where each type of institution started in the 1960s. Public institutions historically charged much lower tuition than private ones. Thus, even if both types of institutions were to increase their tuition by the same dollar amount, the percentage increase would appear much larger for public institutions.
In essence, while both public and private colleges have seen dramatic increases in tuition and fees, the economic, political, and operational factors facing public institutions have caused a more pronounced tuition hike in that sector over the decades.
How Students Can Manage Rising College Costs
Naturally, there isn’t much individual students can do to impact the cost of tuition and fees that colleges charge. Instead, students can help manage increasing costs by following smart financial strategies. These can include things like setting up special savings accounts for college, investigating grants to attend institutions, finding work-study programs that reduce what students have to pay, getting student discounts and much more. Here’s a look at some good college savings strategies.
Scholarships for Students
Every year tons of scholarship programs are offered for all types of students, like those still in high school, those who are already undergraduates and those looking for programs on the graduate level. While full-rides may pay for the whole-nine-yards, they’re much more difficult to obtain, Meanwhile, scholarships with amounts ranging from $500 to several thousand dollars are widely offered.
Typically, these types of student scholarships come with stipulations about who is eligible. A common restriction is for students to be studying in certain chosen fields. For example, to be eligible for the SPIE Student Scholarship, with an award amount of $11,000, you’ll need to be studying in the field optics, photonics, imaging, optoelectronics or other related program. Similarly, applicants for the California Capital Airshow Scholarship, which has an award amount of $8,000, must have a desire and intention to pursue a professional career in the areas of aviation management, aeronautics, aerospace engineering, aeronautical mechanics and electronics, or other related fields.
Other common eligibility requirements include the applicant’s status in terms of where they are in their education. For example, some scholarships are only open to current high school students. Some programs only take applicants that are already attending or admitted to college. Others require that applicants must already be pursuing a masters degree. The qualifications for student scholarships vary widely, so it pays to do your homework and research several programs. Check out these lists of the top scholarships available:
- Scholarships for High School Students
- Scholarships for Undergraduate Students
- Scholarships for Graduate Students
- Scholarships for PhD Candidates
Student Discounts and Coupons
Countless retailers and other kinds of businesses offer student discounts and student coupon codes. These student discounts, especially when strung together in smart manner, can result in tons of savings for college students. This is a great route to go for reducing costs outside the tuition and fees charged by the school. Some great student discounts include:
- Student discounts on computers and related products, such as Apple student discounts and HP student discounts
- Student discounts at mobile phone providers, such as Verizon student discounts and AT&T student discounts
- Student discounts at big-box retailers, such as BestBuy student discounts and Target student discounts
- Student discounts on clothing and apparel, such as Nike student discounts and ASOS student discounts
- Student discounts on books, such as Newegg student discounts and Chegg student discounts
Through smart budgeting and strategic use of student discounts, you can work towards reducing how much you spend on expenses related to college.
529 Savings Plans
529 savings plans are specialized financial vehicles offered across the country to encourage families to save long-term for education costs at colleges and universities. 529 plans are legally known as “qualified tuition plans.” These plans are sponsored by states, state agencies or educational institutions and are authorized by Section 529 of the Internal Revenue Code. These qualified tuition plans come in two forms: pre-paid tuition plans and college savings plans.
With a pre-paid tuition plan, you can purchase credits now toward future tuition, which enables you to pay for college now at current costs, instead of waiting to pay for school as tuition rises. With a college savings plan account, you invest your money, which is subject to gains and losses like other types of investments are.
The key advantage of 529 savings plans is that it grows tax-free. As long as the money stays in the account, no income taxes will be due on earnings. What’s more, when you take money out to pay for qualified education expenses, those withdrawals may be federal income tax-free and, in many cases, free of state tax as well. and when you take out the money for qualified education expenses, the money is also fax-free. If the money in a 529 account isn’t used for a student’s college education, it can be transferred to another family member, including the person who created the account. This means that the fund can be used to help all family members pursue college degrees, making these plans especially useful.
The Bottom Line on Rising Costs of College
Based on the data and ongoing trends, college tuition and fees are going nowhere but up in the future. This goes for both private and public schools. Even public two-year colleges are set to continue their rise in tuition costs. Events like recessions and social crises, such as the one caused by Covid, definitely have an impact on college costs. However, the effects are usually only temporary, and, if they do impact tuition and fees, it is usually just a slowing in the rate of growth rather than an outright reduction in costs.
Therefore, the principal way to lower college costs is for you to adjust your behavior. It is up to you managing your finances responsibly and strategically to make the biggest dent in college-related expenses. Combining the use of student scholarships, student discounts and college savings plans is a great strategy to attack the costs of college on multiple fronts. Since you can’t stop the inexorable rise in college tuition yourself, the best approach is to adapt to it.