Well, the news is in, and tuition prices are up. The most recent report out of the College Board announced that the
average tuition at four-year public colleges in the U.S. rose $429 to $7,020, a 6.5% increase of last year’s numbers. Private colleges experienced a similar incline, as tuitions across the country rose 4.4% to $26,273. Including room and board, the price tag associated with public schools jumps to $15,213. Private schools face an average cost of $35,636 when you factor in the costs associated with college life outside of the classroom.
This jump in costs shouldn’t come as any surprise to people who have been monitoring tuition costs over the past few years. Tuitions generally rise with inflation, and in recent years, with schools facing serious financial troubles because of the recession, administrators have had to hike up tuition costs to make up for money lost elsewhere. Some schools have had to resort to more drastic measures, cutting back on faculty, cafeteria options, and, in some cases, athletic programs.
What is surprising, however, is the fact that the amount that students are actually paying for school on average is currently lower than it was five years ago. The reason? Financial aid. Because of the increase in government sponsored financial aid, the estimated net price – what the average student actually pays after financial aid comes into play – of a public school education is a mere $1,620, and the estimated net price at a private school is only $12,000.
Much of the reason for this is that requests for financial aid are at an all-time high. According to
The New York Times’ Jack Kadden, public schools across the country have experienced
huge increases in requests for financial aid. Specifically, the University of Michigan, which Kadden points out “has usually been unaffected by economic downturns,” has had to set up a $6 million reserve to help incoming freshmen and their unexpected request for financial aid. In total, the school awarded over $800 million in financial aid this fall.
Expect to see similar figures if you’re applying to public schools the size of UM’s in the next few years, largely because of
government involvement. The Obama Administration’s pledge for the government to play a greater role in helping students pay for college has already began to make a difference. Last school year alone, 65% of the $180 billion used on student financial aid came from the federal government through grants, loans and work-study programs.
It’s a figure up 7% from the previous year’s figures. And considering that the maximum Pell Grant rose by over $600 this year, students should expect to see a greater increase in their chances of getting a solid financial aid package.