The average cost to attend a private college increased 4.3% for the 2009-2010 school year. The average price tag was $35,636, according to an educational trade group. The cost to attend a public college surprisingly rose even more at 5.9%, which brought the average cost to $15,213.
Out-of-state students at public colleges saw their costs rise 6 percent to $26,741, according to the College Board, a non-profit association of schools, colleges and universities. (All costs include tuition, fees and room and board.)
There are many reasons for the increased costs at both public and private colleges. The primary reason cited at both is the state of the economy. Increased tuitions help colleges make up for lost funding sources.
Private colleges rely on endowments from alumni, to a large extent to keep costs down. But in this economy, endowments are down. Universities such as Harvard and Princeton and University of Michigan report that their endowments have dropped by 20% during the fiscal year ending June 30, 2009.
Public colleges rely on state subsidies, in addition to endowments to help defray some of the increases in costs. Those state subsidies have been cut back due to lower state tax rolls.
But reduced funding is only part of the story for both public and private colleges and universities. Competition is fierce. All colleges have to spend money to keep up with upgrading facilities, and building new facilities, such as gymnasiums and science centers to keep up with other schools in their category. Keeping up is essential to attract the best students.
Before students and parents panic because of increased tuitions, they should be looking into alternative sources of funding this important education.
Increased tuitions do not necessarily equal increased costs for many students. Grant money has become more available, so some students have actually seen their costs lower for this year than they were for the 2004-2005 academic year.
Average grants for private colleges totaled $14,400, cutting tuition for those students to average costs of $11,900 (plus room and board). Average grants were $5,400 (plus room and board).
The net change to the students was actually a drop in costs at both private and public colleges.
Students and their families should not be dissuaded from applying for college attendance. Student aid and grant money is available.
You might also want to read:
College cost reduction act
Resources:
CNBC News
Written by Shelby Bateson
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