Finally, we have some good news on the college tuition front. A recently released report by the College Board indicated that tuition increased by 2.9% to $8,893 for in-state students attending public four-year colleges. This compares to a 4.8% increase a year ago and is the smallest yearly increase in over 30 years? Did other out-of-state students and those attending private colleges and universities fair the same?
Tuition for out-of-state students attending public colleges
There was a 3.1% increase in tuition. The tuition cost increased from $21,533 in 2012/13 to $22,203 in 2013/14, with average total charges of $31,701.
Tuition to attend a private college or university in 2013/2014
There was a 3.8% increase in tuition for students considering attending a private nonprofit four-year college. This is only slightly lower than in prior years. Last year, the increase to attend a private college was 4.2%. The total cost amounts to $30,094 as compared to $28,989 a year ago. However, after considering room and board as well as other charges, the average total costs is $40,917.
Are these the total tuition costs?
It’s important to keep in mind that most students don’t actual pay these tuition fees. Many students qualify for grants that can significant reduce the high cost of tuition.
Is this the new norm?
While we are encourage by the decrease in the rate of tuition costs, we aren’t sold that this is the new norm. Tuition costs have historically increased at an average rate of 1.5 to 2 times inflation. We think there could certainly be significant cost increases in the future should inflation begin to take hold.
More questions? Ask a Finance Professional.
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