Sunday, October 31, 2010

Are College Costs Actually Falling?

They might be. Report: Net cost of college has dropped from the Washington Post. The basic idea is that although the stated price (tuition) has been rising, so has financial aid. Here are some exerpts:

"The average yearly net price of public four-year universities in tuition and fees, after discounting grant aid and tax benefits, declined from $2,080 to $1,540 in inflation-adjusted dollars between 2005-06 and 2010-11, according to data from the national College Board survey.

The net price for private colleges declined in those years from $12,750 to $11,320. Add the cost of room and board, and public university students pay an average of about $10,000 a year, a few hundred dollars more than five years ago. Private university students pay a little over $20,000, a bit less than in 2005-06."

I wrote about this earlier in the year. See As college costs rise, sticker shock eased by student aid. It mentions how financial aid is really just a form of price discrimination.


Patrick said...

What?! College costs have been increasing at a faster rate than inflation for many years. All the costs add up, students are being asked to pay for a lot. But why does it cost so much?

Theresa Bruno said...

While more colleges are increasing financial aid, I have to disagree with your post. Tuition, room and board may not have risen much, but colleges have learned a lot from banks: fees, fees and more fees. Fees at a university can easily exceed $2,000 a year. Add the steep increase in the price of books and college is unaffordable for many.

Cyril Morong said...

Good point about fees and books. It is not clear if the study looked at that.