At last, some welcome news on college costs. Tuition has fallen significantly at many schools
New research indicates students are paying significantly less to attend public universities than they were a decade ago
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The cost of college keeps spiraling ever higher, right?
Not necessarily. New research indicates students are paying significantly less to attend public universities than they were a decade ago. And tuition increases at private colleges have finally slowed after years of hefty rises.
Figures compiled by the nonprofit College Board indicate the average student attending an in-state public university this year faces a tuition bill of $11,610, which is down 4% from a decade earlier when taking inflation into account. But the real savings come in what the average student actually pays after getting grants and financial aid. That's down 40% over the decade, from $4,140 to $2,480 annually, according to the data.
That reduced cost means less borrowing. Just under half of students attending in-state public universities are graduating with some debt, down from 59% a decade earlier, according to the College Board figures. And among those who do borrow, the average loan balance has fallen by 17%, to $27,100.
Meanwhile, at private colleges, tuition continues to rise, but at a much slower rate. It has increased 4% over the past decade, when taking inflation into account, to an average $43,350, according to the College Board. That's a big change from the two decades prior, when tuition increased 68%.
Costs are coming down as Americans question whether college is worth the price. Surveys find that Americans are increasingly skeptical about the value of a degree, and the percentage of high school graduates heading to college has fallen to levels not seen in decades, according to data from the U.S. Bureau of Labor Statistics.
Yet research still finds that, over time, a degree pays off. Americans with a bachelor’s degree earn a median of $2.8 million during their careers, 75% more than if they had only a high school diploma, according to research from Georgetown University’s Center on Education and the Workforce.
The COVID-19 pandemic has been a big factor in the cost reductions, said Jennifer Ma, an executive research scientist at the College Board and lead author of the study.
“We know that during COVID, a lot of institutions — public and private — froze tuition,” Ma said.
As states and the federal government responded to the pandemic, Ma said, they increased higher education funding, allowing colleges to reduce the cost of attendance. Some of that money has since expired, however, including an infusion of federal pandemic aid that was mostly used up by the end of 2022.
Cost was a major consideration in Kai Mattinson's decision to attend Northern Arizona University. It would have cost her about $39,000 annually to attend the public university but discounts and scholarships bring that down to between $15,000 and $20,000 for the 22-year-old senior from Nevada.
“I originally wanted to go to the University of Arizona, but when it came down to tuition and other cost, Northern Arizona University was the best option,” said Mattinson, a physical education major who also works as a long-term substitute at a local elementary school.
Many institutions have tried to limit cost increases. Purdue University in Indiana, for example, has frozen its annual in-state tuition at $9,992 for the past 13 years.
Mark Becker, the president of the Association of Public and Land-grant Universities, said he was pleased to see the new data.
“Institutional efforts to control costs, combined with many states’ efforts to increase investments in public universities and federal investment in the Pell Grant, have increased college affordability and enabled significant progress on tackling student debt,” Becker said in a statement.
Costs for those attending public two-year community colleges have fallen even more, by 9% over the past decade, according to the College Board data, which is broadly in line with federal figures collected by the National Center for Education Statistics.
Still, for parents paying for their children to attend out-of-state public universities or private colleges, the costs remain daunting — as much as $95,000 annually, in some cases. However, many institutions offer significant discounts to the sticker price for middle- and lower-income students.
Some private colleges have been expanding their financial aid, including the Massachusetts Institute of Technology, which in November announced undergraduates with a family income below $200,000 would no longer need to pay any tuition at all starting in the fall.
Other private colleges are discounting tuition as a marketing move in an increasingly difficult environment. They face a dwindling pool of young adults, and students who are more wary of signing up for giant loans. Recruiting students is crucial for staying afloat as operational costs rise. After temporary relief thanks to federal money during the pandemic, many colleges have cut programs to try to keep costs under control.
___
Associated Press writer Collin Binkley contributed to this report from Washington, D.C. Mumphrey reported from Phoenix.