College tuition cost rising again this fall

[1SICKLEX]

http://news.yahoo.com/s/ap/20091020/..._college_costs

By JUSTIN POPE, AP Education Writer Justin Pope, Ap Education Writer – 2 hrs 56 mins ago

Average tuition prices rose sharply again this fall as colleges passed much of the burden of their own financial problems on to recession-battered students and parents.

Average tuition at four-year public colleges rose 6.5 percent, or $429, to $7,020 this fall, according to the College Board's annual "Trends in College Pricing" report, released Tuesday. At private colleges, the average list price for a year of coursework rose 4.4 percent to $26,273.

Those figures hide wide variations — public college students in California, Florida, New York and Washington have seen double-digit percentage increases, while the University of Maryland used federal stimulus funds to freeze tuition this year.

More importantly, the estimated net price — what the average student actually pays after accounting for financial aid — was much lower, at about $1,620 at public four-year colleges, and under $12,000 at private ones. Both figures are higher than last year but still lower than five years ago, thanks to recent increases in financial aid both from the government and from colleges themselves. The figures do not include room, board and other living expenses.

Still, this year's increases were bad news for students who pay full price, and confirm that despite cost-cutting on everything from faculty to cafeterias and sports travel, higher education once again failed to keep its own price increases anywhere near the overall inflation rate.

In fact, during the period covered by the College Board report, consumer prices declined by 2.1 percent. So accounting for inflation, the latest increase at public colleges felt closer to a 9-percent jump.

"Every sector of the American economy is under stress and higher education is no exception," said Terry Hartle, senior vice president of the American Council on Education. "It's regrettable, and it's yet another piece of disappointing economic news that affects families."

Hartle said the report showed some good news: a companion report on financial aid documented substantial increases in aid, especially from the government, that ease the price increases for low-income students. And community colleges, home to about 40 percent of college students, remain essentially free to the average student after factoring in financial aid.

The reports come as many colleges face their most challenging economic climate in memory.

On the public side, state appropriations to public colleges declined nearly $4 billion in 2008-2009 from the previous year, even as enrollment grew, and state dollars are falling further this year. Private colleges had fewer students who could afford to pay full freight, forcing schools to offer more financial aid even as their endowments fell by record amounts in the stock market crash.

Worst hit is California, whose giant public university and community college systems educate about one in six American college students. Facing unprecedented state funding cuts, public colleges have boosted fees, raised class sizes, furloughed faculty and turned away students. On top of the current year's 9-percent fee increase, the University of California system is considering increases of more than 30 percent by next year.

The reports also offer a glimpse of what has become a significant expansion of the federal government's role in trying to help students pay for college.

In 2008-2009, 65 percent of the $180 billion spent on higher education expenses came via the federal government in the form of grants, loans and work-study programs, up from 58 percent the year before. Overall, the report estimated federal grant aid rose almost 11 percent last year. That trend will likely continue because the maximum Pell Grant — the government's main college aid program for low-income students — rose by over $600 this year to $5,350.

Students also borrowed more to pay for college — but much more from the government and much less from nonfederal lenders such as banks. Estimated private borrowing collapsed from around $24 billion in 2007-2008 to under $12 billion last year, the aid report estimates.

That sharp decrease came after years of rapid expansion in student borrowing from the private sector — a trend that worried some experts because private loans generally have higher interest rates and fewer borrower protections than federal ones.

But a range of factors have quickly turned the tide: students can get larger Pell Grants and borrow more from the government, and private lenders have become much more selective in making student loans.

On average, about two-thirds of bachelor's degree recipients borrow money, and their median debt is about $20,000 by graduation.

[4TehNguyen]

mmmm inflation and federal loans. Why would colleges lower prices when all these students walk in with these federal loans? Good hearted intentions, but unintended consequences.

[92 SC400]

When my g/f graduated from a state university here in CA her tuition was like $900; this was the spring of 2005. When I stated in the fall of 2006 (yes, she's older... haha) tuition was like $1,100 and rose every semester to about $1,900 when I graduated in 2008.

[4TehNguyen]

i remember when i started college, it was about $1200 for 12 hours, later on it got up to $3500-4000

[jracerlmn]

why don't they kick out the people that have no right to be in college *COUGH* illegals* COUGH COUGH COUGH*

and distribute it to lower everyone else's college.

[Jeembo]

I went to the cheapest school I could find and that was still about $10k/year for tuition, books, and room and board. Graduated in '07 and had a bunch to pay back in loans. It sucks that it's that expensive.

[legit]

Heh...here in Canada (well, Ontario anyway), tuition costs aren't TOO bad depending on the program though. Engineering hovers around $10,000, top-tier business schools at around $20,000-$30,000 (with the exception of one school that made it only $10,000), sciences/maths/arts/everything else is only $5,000-$6000.

But add in some conservative values for food at $2000, room for $4000, books for $1000, and utilities at $1200, it's rather costly with an additional $8200 on top of tuition. Of course, thank goodness for student loans. Household incomes < ~$70,000 with two children means a $12,000/year loan (assuming no RESPs, significant savings, scholarships, assets like a car unless it's valued at <$4000). It's kind of absurd considering students would be expected to pay $14,000 by themselves if there was no scholarships/funding from family/government loans.

[Brian231]

Typical increase in higher ed is roughly 4% a year. It has been much higher the past couple of years. It is a rough market for everyone.

[4TehNguyen]

college tuitition nowadays is like a mortgage except you dont get a house, its ridiculous.

[projectdna]

CSUF had an increase of 13% in tuition, and the MBA program @ CSUF instituted a $210/unit "graduate student fee" to continue MBA program funding. (big thanks to the state of california, but i digress...)

in short, my tuition went from ~$2500 to almost $5k this semester.

the overall cost in tuition isn't much to complain about in comparison to other institutions of higher education, but nearly 50% is ridiculous...

[vwynn]

it increased this year already for us.. CPP peeps

[JessePS]

There is a certain program here in Quebec at McGill. They are trying to turn like a $7k a year course into like a $35k a year course :/

[tuan92129]

UC's tuition raised by 25 % this year
No FINANCIAL AID either

[powerwave]

when i started college, tuition was $1300/semester full time. my last semester, three years later, cost about $2800.

then in grad school, my cut of the tuition bill started at about $6k/year, ended up around $9500 my 5th (and last) year. actual tuition skyrocketed far higher, but most of the increase was soaked up by my fellowship.

[Danimal]

Is anyone surprised? I know when my brother started going to college (~2000?), tuition rates were well below the $2000/sem mark at Ball State, now, not even 10 years later, it's getting a LOT closer to $4000 per semester.

Any more, I try to ignore how much I'm needing to get federal aid for. I know I need the money, I know I need to go to college. I just sign the dotted line and I'll figure out how to repay it when I get a job (hopefully a comp sci grad will be able to find a job!).

Unlike my fiancee, who took out loans from multiple sources to pay for housing (off campus), food (every day), etc. so that she could concentrate on school and not have to work. Now she's ~60k in debt with a Bio degree, for which there are no jobs.

Guess I get to pay back that one too.