College tuition is now rising at a rate lower than inflation
Each year college costs more.
But, there are still some. continued falling enrollment due to CovidAccording to the College Board’s annual report, tuition and fee increases this year are extremely low by historical standards. trends in college pricing and student aid
Average tuition and fees increased by 1.3% to $3800 for students in two-year colleges and 1.6% to four-year public four-year colleges for in-state students, which reached $10,740. For students attending four-year private schools, it rose 2.1% to $38,070.
After adjusting for inflation the average tuition and fees fell across all levels. (The latest inflation numbersThe increase was 5.4% over the previous year.
Learn more about Personal Finance
College enrollment saw largest two-year decline in 50 years
Here are the schools with the best return on investment
Fewer students are going to college because of the cost
Jennifer Ma (collaborator and senior policy researcher at College Board) stated that some states and institutions are keeping tuition fees flat for this year.
Ma claimed that average tuition in two-year institutions has not increased in fifteen states. The average four-year college tuition cost for students in three states remained the same.
Many experts agree that college tuition costs are still too high.
Due to a reduction in public and private college and university funding, tuition soared during the Great Recession. Today tuition is responsible for approximately half the college revenue while state and municipal governments contribute half.
However, it was quite different three decades ago. Tuition provided just 25% of the revenue, while the state and local governments took the remainder.
Since so few families have the financial resources to support the debt, many students are now in need of federal or private help. $1.6 trillion
In response to the economic shock wrought by the pandemics, $74.8 billion was authorized to students and higher education institutions through the Higher Education Emergency Relief Fund.
This money was sufficient to support schools in keeping tuition relatively steady. At least half the money has been earmarked to provide financial aid grants to students.
Ma explained that the average amount of grant aid is increasing and student loan borrowing decreasing. “It will interesting to see if this trend will continue.”