Trends in the Cost of Post-Secondary Education
Average Costs
Going to college or a trade school can be very expensive. Here are some examples of how much it costs to attend different types of schools:
- Public 4-Year Institutions
- In-state students pay about $9,750 per year for tuition and fees.
- Out-of-state students pay around $27,457 per year.
- Total cost for in-state students living on campus is about $27,146 per year.
- Total cost for out-of-state students living on campus is roughly $45,708 per year.
- Private Nonprofit 4-Year Institutions
- Tuition and fees are about $38,768 per year.
- Total cost for students living on campus is around $58,628 per year.
- Private For-Profit 4-Year Institutions
- Total cost of attendance usually averages around $33,600 per year for students living on campus.
- 2-Year Institutions
- Public 2-year colleges charge in-district students about $3,598 per year for tuition and fees.
- Total cost for in-district students living off-campus is around $17,439 per year.
Long-Term Trends
The costs of going to college have changed a lot over time. Here is a look at some of these changes:
- Tuition Increases
- In the last 20 years, tuition at public 4-year colleges has increased by 141%, with an average yearly rise of 7.0%.
- For private 4-year colleges, tuition has gone up by 181.3%, with an average yearly rise of 5.5%.
- Historical Context
- In 1963, a 4-year degree from a public university cost about $3,716.
- By 1989, this cost rose to $19,900.
- For the 2022-23 school year, it is roughly $89,556.
- Recent Annual Increases
- For the 2022-23 school year, public 4-year colleges raised tuition by 1.6%.
- Private nonprofit colleges increased by 3.21%.
- Private for-profit colleges saw a rise of 2.34%.
Institutional Variations
The cost of post-secondary education can vary a lot depending on the type of school and program:
- Public vs. Private Institutions
- Public schools usually have lower costs for in-state residents compared to out-of-state or international students.
- Private schools, especially nonprofit ones, tend to be more expensive.
- Program-Specific Costs
- Programs like law or medicine often cost more than regular undergraduate programs.
Understanding these costs can help you plan for your education. For more information on the costs of post-secondary education, you can visit College Board.
Financial Aid and Debt
Student Debt
Many students need to borrow money to pay for college. Here are some key points about student debt:
- Graduates in 2016 had an average student loan debt of $37,172.
Even though tuition prices have gone up, the net cost (after adjusting for scholarships and grants) has risen more slowly:
- Since 1993, posted tuition prices rose by 114%, but net tuition increased only by 46%.
Borrowing Trends
Over the years, students have borrowed more money to pay for school:
- Student borrowing has tripled over the past few decades.
- Graduate students are borrowing more and will soon hold half of all student debt.
Enrollment at schools with high borrowing rates has also gone up, especially among underrepresented groups. This means more students are taking on bigger loans:
- Underrepresented groups are enrolling more at schools with high student debt.
Financial Aid Policies
The amount students pay after financial aid varies a lot. Here’s how it looks:
- Costs are lower for low-income undergraduates but higher for master’s students and high-income undergraduates.
Different education programs drive tuition costs:
- Graduate programs are the main reason for tuition increases.
- Costs for associate degrees have actually gone down.
Net prices for undergraduates have changed based on family income:
- Costs stayed the same for lower-income families but went up for wealthier families.
For more detailed information on student financial aid, you can visit Federal Student Aid.
Public Perception and Economic Outcomes
Value of a College Degree
Many people have different opinions about the value of a college degree. Here are some key points:
- Only 22% of Americans think paying for a four-year college degree is worth it, even if they need to take out loans.
- About 35% believe a college degree is somewhat important for getting a good job.
- 40% of people say a college degree is not too important, or not important at all, for earning a good income.
Economic Outcomes
Let’s look at how young adults without a college degree are doing:
- Young adults without a degree are doing better financially than they were in past years.
- Earnings have gone up since 2014 for young men with some college education.
- Young adults with just a high school diploma are also earning more now.
Strategies for Managing Costs
Here are some useful tips to help manage the costs of education:
- Scholarships and Grants
- These types of financial aid do not need to be paid back. They can really help reduce the cost of college.
- Saving and Budgeting
- Set savings goals and open a dedicated savings account.
- Consider automating contributions to save money regularly.
- Alternative Education Options
- Community colleges often have lower tuition rates. They are a good option for completing basic courses.
- Online learning platforms can be flexible and less expensive. They allow students to earn credits that may transfer to other schools.
For more ideas on managing education costs, you can visit College Board.