David Lerner Associates: The Rising Cost of College
Each year the College Board releases its Trends in College Pricing and Trends in Student Aid, a report that shows college expenses and trends in financial aid. Although expenses may fluctuate significantly depending on the region and college, the College Board issues average cost figures. The figures are based on a survey of nearly 4,000 colleges across the country.
Here are some of the highlights from the most recent report:
Public colleges/ universities (in-state residents)
• Tuition and fees up by an average of 2.9% to $9,139
• Room and board inflated by an average of 3.2% to $9,804
• Total average cost* for 2014/2015: $23,410 compared to $22,826 in 2013/2014
Public colleges/ universities (out-of-state residents)
• Tuition and fees grew by an average of 3.3% to $22,958
• Room and board went up by an average of 3.2% to $9,804
• Total average cost* for 2014/2015: $37,229 as opposed to $36,136 in 2013/2014
Private colleges/ universities
• Tuition and fees increased by an average of 3.7% to $31,231
• Room and board enlarged by an average of 3.4% to $11,188
• Total average cost* for 2014/2015: $46,272 compared to $44,750 in 2013/2014
Remember that these statistics are average cost figures. The total cost for the most selective private colleges is considerably higher. They are usually over $60,000 per year.
Debt tendencies
Roughly 7 in 10 students that graduated in the Class of 2013 had an average of $28,400 in loans (Source: The Institute for College Access and Success, Student Debt and the Class of 2013, November 2014). On the other hand, the Class of 2012 had an average of $27,850. Approximately one-fifth of the Graduates from the Class of 2013's debt encompassed of private loans, which typically give less reimbursement selections than federal student loans.
The report went on to note: "For numerous 2013 graduates, their college years came during a time of increasing college costs and stagnant family resources. State budget cuts led to sharp tuition increases at many public colleges, increasing students' need to borrow….Multiple factors influence average college debt levels, such as endowment resources available for financial aid, student demographics, state policies, institutional financial aid packaging policies, and the cost of living in the local area."
Yet, the report also noted the strong employment and earnings prospects for those with college degrees compared to adults with only a high school education.
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