Nick Perry and Cheyenne Mumphrey, Associated Press
BOSTON (AP) — College tuition continues to get more expensive, right?
Not necessarily. Students pay significantly less tuition to attend public universities than they did a decade ago, according to a new study. And tuition increases at private universities have finally slowed after years of large increases.
The average student attending a public university in the state will pay $11,610 in tuition this year, 4% less than a decade ago after accounting for inflation, according to figures compiled by the nonprofit College Board. But the real savings come from what the average student actually pays after receiving grants and financial aid. According to the data, it has fallen 40% over the past 10 years, from $4,140 to $2,480 per year.
Lower costs mean less borrowing. Just under half of students attending public universities in the state graduate with some form of debt, down from 59% a decade ago, according to College Board statistics. And for those who did borrow, the average loan balance fell by 17% to $27,100.
Meanwhile, tuition fees at private universities continue to rise, but at a much slower pace. According to the College Board, the average salary has increased by 4% over the past 10 years, accounting for inflation, to $43,350. This is a big change from 20 years ago, when tuition increased by 68%.
Costs are coming down as Americans question whether college is worth paying for. Americans are becoming increasingly skeptical about the value of degrees, with the percentage of high school graduates going on to college dropping to levels not seen in decades, according to data from the U.S. Bureau of Labor Statistics. This is revealed in the survey.
But research shows that degrees pay off over time. According to a study by Georgetown University’s Center on Education and the Workforce, Americans with a bachelor’s degree earn a median lifetime income of $2.8 million, 75% more than those with just a high school diploma.
Jennifer Marr, executive research scientist at the University Board of Regents and lead author of the study, said the COVID-19 pandemic has been a major driver of cost reductions.
“We are aware that many educational institutions, both public and private, have frozen tuition fees due to the coronavirus pandemic,” Ma said.
Marr said the state and federal governments have increased funding for higher education in response to the pandemic, allowing universities to reduce tuition costs. But some of that funding has since expired, including an infusion of federal pandemic aid money, most of which was used up by the end of 2022.
Cost was Kai Mattinson’s main consideration in deciding to attend Northern Arizona University. It costs about $39,000 a year to attend a public university, but for a 22-year-old senior from Nevada, discounts and scholarships keep the cost down to between $15,000 and $20,000.
“I originally wanted to go to the University of Arizona, but Northern Arizona University was the best option for me due to tuition and other costs,” said Mattinson, who is majoring in physical education and also works as a long-term substitute at the university. spoke. local elementary school.
Many institutions have sought to limit cost increases. Purdue University in Indiana, for example, has frozen annual in-state tuition at $9,992 for the past 13 years.
Mark Becker, president of the Association of Public and Land-grant Universities, said he was pleased to see the new data.
“Institutional efforts to contain costs, combined with efforts to increase investment in public universities in many states and federal investment in Pell Grants, have led to an increase in the cost of college tuition,” Becker said in a statement. “We have made significant progress in tackling the student debt issue.”
The cost for students attending public two-year community colleges has declined by an additional 9% over the past decade, according to College Board data, roughly in line with federal figures compiled by the National Center for Education Statistics.
Still, for parents who pay tuition for their children to attend out-of-state public or private universities, the cost remains daunting, sometimes reaching $95,000 a year. However, many institutions offer significant discounts on list prices to middle- and low-income students.
Some private universities have expanded financial aid, including the Massachusetts Institute of Technology, which announced in November that undergraduate students with household incomes of $200,000 or less will not have to pay any tuition at all starting in the fall.
Other private universities are also offering tuition discounts as a marketing move in an increasingly difficult environment. They face a decline in young people and students who are wary of applying for large loans. As operating costs continue to rise, recruiting students is critical to sustaining business operations. After receiving temporary relief from federal funding during the pandemic, many universities cut programs in an effort to contain costs.
Associated Press writer Colin Binkley contributed to this report from Washington, D.C., and Mumphrey reported from Phoenix.
First published: January 8, 2025 6:12am PST
