Tuition and other fees at two-year and four-year institutions rose significantly higher this year compared to the previous academic year, outpacing the slow growth of federal financial aid, according to a recent report released the by College Board.
In its annual report, “Trends in College Pricing 2007,” the College Board revealed that the increases for 2007-2008 were somewhat higher than last year but not as high as previous hikes:
“The average price of college continues to rise more rapidly than the average prices of other goods and services. However, this is not a new phenomenon, but one that has persisted over the entire 30-year period documented,” says Dr. Sandra Baum, senior policy analyst for the College Board and professor at Skidmore College.
Over the past decade, total charges including room, board, tuition and fees rose at an average 2.6 percent per year after inflation at private four-year institutions, and 3.5 percent at public institutions. The increase in total aid only covered about two-thirds of the increase in tuition and fees at private four-year colleges and almost all of the increase in tuition and fees at public four year institutions, not including room, board or any additional cost of attendance.
Dr. David Ward, president of the American Council on Education, was encouraged by College Board’s report, noting that current costs are markedly lower than in 2003. He said, “Despite some slight variation, today’s report shows that the rate of increase in college tuition has remained relatively stable, for the last five years. Still, it is clear from the data on tuition increases at both public and private four-year institutions that more work needs to be done. We hope that state governments — which really set tuition prices at most public colleges and universities — will do their part to reinvest in higher education.”
The report comes as Congress is in the early stages of considering a proposal that could require some colleges with large endowments to spend more of their savings to keep tuition down. Colleges call the idea misguided and say it wouldn’t solve the underlying economic issues explaining the price increases.
Dr. Dallas Martin, president of the National Association of Student Financial Aid Administrators, was less optimistic recognizing the constraints of the federal student aid system on low-income students. “College costs continue to increase at a faster rate than increases in financial aid. This trend is especially harmful to America’s lower income families which increasingly rely on alternative or private education loans which carry high interest rates.”
