The focus of this post will be related to tuition and college costs. This can be a confusing and overwhelming aspect of college planning, so I have kept things concise and straightforward. I will periodically supplement this post with additional pieces and links to useful articles, so please watch for those in the future!
In order to help you process and navigate the content of this post, I want to outline a few key terms with examples.
Relevant Terms
Sticker Shock - a colloquial term used to describe the shock associated with the cost of something, a car, a service bill, or, in this case, college.
Free Application for Federal Student Aid (FAFSA): FREE application that must be completed each year you are in school.
You never have to pay to complete this form. If you are asked to pay, it’s a scam.
The soft deadline is Oct. 1st for submission – a first come, first served basis for financial aid.
You will receive a financial aid offer letter outlining how much you are entitled to.
College loans - funds borrowed from the federal government or private lenders to help pay for school. Loans come with interest that must be paid off on top of the principal amount.
Federal Loans:
Direct subsidized loans are based on financial need.
Direct unsubsidized loans are determined by the school based on the cost of attendance and how much other financial aid you are receiving.
Direct PLUS loans are credit-based for parents and graduate/professional students [AKA Parent PLUS loans].
Private Loans: Issued by a bank or financial institution.
Private student loans taken out by students may require co-signature from parents.
Parents take parent loans to help the student cover school costs.
To accept your federal loans, you must complete a Master Promissory Note to agree to the loan’s terms.
Repayment of loans typically comes with a six-month grace period after completing your degree or if you stop attending college.
Afterward, interest will accumulate on top of the principal amount owed.
Scholarships, grants, and work-study are “free money” resources that can help offset some of the financial burdens of college. However, these are first-come, first-served resources, so please pay attention to deadlines and requirements!
Average Cost of Lost Income - the loss of potential income when attending college full-time or studying rather than working.
For perspective, the median weekly income for a high school graduate is $853 or $44,000 annually. This is money “lost” when attending college full-time without working.
Income loss is not a “bad” thing; however, it depends on the person’s financial situation.
Some students work seasonal jobs (winter or summer break) to make additional money when the semester is over.
Every year, millions of high school students and (young) adults are applying to college. It’s kind of a “rite of passage” in education with applicants inspired by the idea of a better life, a better job with higher pay, and a chance to enhance their learning and thinking. This is true; however, many families are also coming to terms with the cost of such an adventure.
I imagine a family on a campus tour sitting in an admissions office listening to a presentation. There are visuals that make the campus look vibrant, the institution’s logo prominently featured, and attractive students all wearing a shirt or hat with said logo smiling brightly as they walk shoulder to shoulder. The prospective student is sandwiched between their parents, half-asleep from the trip and silently overwhelmed by the idea of applying to a college. The parents are equally overwhelmed by the various requirements and the upcoming difficult news – the cost of tuition.
Finally, the moment comes, and the admissions representative lays out the costs of semesterly tuition and residency. What will follow is information about institutional supports, scholarships, and all the efforts being made to make college affordable. To their credit, many higher education institutions are working hard to support their prospective students, especially smaller private colleges, financially.
At that moment, when the numbers are laid out, the reality of attending college begins to hit the student and/or their family. However, this is not the complete picture, as many hidden costs are baked into attendance. Some of these factors will be covered in this post.
College Tuition
Tuition is the associated charges or fees of attending a college or university as a 2-year or 4-year institution. Typically, a 2-year institution is a community college where students can take coursework
Toward an associate degree;
Complete prerequisite courses before transferring to a 4-year college; or
Take additional courses as required for job training/certification.
2-year colleges also serve as a great starting point for people unsure if college suits them.
Perhaps economically unable to afford other aspects of college (will be covered in this post).
Or if they are working full-time and can only manage a part-time schedule.
4-year institutions are great options for students seeking a bachelor’s degree, such as by becoming a certified teacher or earning a degree in psychology toward graduate school to become a social worker.
More time in college means more costs, which might mean more borrowing and increased student debt after completing the degree.
A higher level of education does afford a person a better career outlook with foundational knowledge and hands-on learning opportunities (e.g., internships/student teaching); however, it is not a guarantee.
The average cost of college in the 21st century has more than doubled, with an annual growth rate of 2% in the last ten years.
In-state vs. Out-of-State
Part of the planning process will be focusing on geography looking at available higher education options within a specific radius of your home. For instance, a person living in an urban area will likely have access to more college options and commuting opportunities than their counterpart living in a rural area. Where you live in the United States may also impact college costs, with the North East (i.e., New England) having colleges/universities that typically rank higher in cost than the South or Midwest.
In-state tuition for public schools is often cheaper, with more financial support provided than attending an institution out-of-state.
The State University of New York (SUNY) system in New York State provides a network of colleges and universities partially funded through NYS taxes.
New York State Tuition Support Options
The Excelsior Scholarship Program is designed to financially help SUNY or CUNY (City Universities) students. (Read the fine print).
The New York State Tuition Assistance Program (TAP)
Tuition support up to $5,665 – this does not need to be paid back (grant money);
For approved schools.
Full-time and part-time TAP options are available.
TAP's starting date is November 1st.
Arthur O. Eve Higher Education Opportunity Program (HEOP)
Also known as EOP or SEEK (in the CUNY system).
Provides college opportunities to students who are both economically and educationally disadvantaged.
Accepted students must be matriculated & working toward a degree.
HEOP programs provide selected students with peer mentors, academic counseling oversight, tutoring, & financial assistance towards college expenses.
Tuition Support in All States
Colleges and universities have institutional aid or monies allocated by the school to provide some economic relief for qualifying students. However, the amount of funds set aside and the extent of financial support an institution provides depends in part on the size and type of institution.
Need-based - depends on personal or familial finances.
Merit-based - based on grades, achievements, and extracurricular activities.
You must complete a FAFSA (Free Application for Federal Student Aid) form to see what institutional aid is available and which you qualify for.
Institutional aid is highly dependent on the amount provided by the college/university, so this is a deadline you need to pay attention to!
Scholarships are available for various populations, and applying doesn’t hurt!
Quick Statistics for Context
The reported average of college costs in the United States is $36,430 per student per year. College costs include textbooks, supplies, technology, and daily living expenses.
In-state costs for a 4-year institution are about $26,000 per academic year
In-state tuition costs are typically cheaper for a state school, the difference between an average of $9,000 vs out-of-state tuition cost of $26,000 per year.
However, compared to an enrollment peak in 2010, the college attendance numbers are trending downward partly due to the COVID pandemic. There are also growing concerns regarding student debt post-college interest rates.
The average federal student loan debt is $37,338 per borrower.
Private loan debts average $54,000.
There are 45.3 million borrowers with loan debt - 92% with fed. loan debt.
Half of borrowers are still paying off loans 20 years after completing their degree.
For context, in 1963, a 4-year public college tuition was $243 or $2,400 in 2022 dollars. From the 1960s until 2020, tuition costs have increased by 2.5% per year after inflation. For instance, a 4-year, in-state degree in 1963 was $910, which increased to $4,500 by 1989. That same degree in the 2020-21 academic year would be about $20,000.
2-year colleges (community colleges) have also seen an increase in tuition cost, with 2010-11 and 2020-21 the average cost increasing by 17%.
Causes for High Tuition Costs?
One reason for the increase in tuition costs comes from the rise in the number of people attending college after high school. Historically, more people attending college necessitates more faculty and staff, administrators, and office assistants to help keep the various departments functioning to meet the demand.
For instance, the registrar’s office. This is a central hub of paper processing as students declare majors and select courses. The workers within this department must keep on top of all of these changes to ensure student satisfaction and mitigate any scheduling mistakes. Suppose a student has a mobility disability and their course is on the top floor and another class immediately right after in the basement. In that case, it might fall on the registrar to help adjust classroom locations to help that student. If a course becomes overbooked, the registrar would then need to coordinate with the Dean of that department to find available faculty to provide another section and reschedule the runoff of extra students. Lastly, the registrar’s office also oversees the requirements of each program and that the students within it are meeting all of the requirements to prevent hangups upon graduation time.
This is only one department within a college.
Consider also the increased demand for educated workers who are experienced with the newest technologies and have real-world experiences such as internships or study abroad trips. There has been a tremendous shift in the expectations placed on higher education to focus more on “job training” and hands-on experiences over the more liberal traditions of academia.
Colleges are hiring experienced professionals from the private sector to help teach content but also bolster the reputation of their respective degrees or programs outside of the classroom. Advancements in technology require training but also space. Smaller, private 4-year colleges are looking into available land spaces to expand their campuses to fill the demands of prospective students.
Athletics also brings about many of the struggles mentioned before - increased demand for staffing, cutting-edge technologies, equipment, and physical spaces for practice and games. Athletic programs can be a great marketing tool to drive enrollment; however, for a smaller college that competes at a DII or DIII level, it will be difficult to compete (no pun intended) with the DI colleges.
Books and Supplies
Textbooks have always been an economic albatross around the neck of students. It is a necessary commodity for learning that only adds to the initial and reoccurring sticker shock of higher education. If a person is paying $900 a credit (remember, classes are often 3-credit per class), so $2,700 per course per semester, they are also factoring in upwards of $60 - 200 extra for learning materials. For just one course! (And don’t think buying it new will mean much when you go to sell it after the semester is over…) Keep in mind that the cost per credit depends on the type of institution (public or private, non-profit or for-profit).
Science courses may include lab fees, and business or computer courses might require paying for online content or licensing subscriptions. More textbooks are available as e-books with semester-long rental costs instead of buying the book outright, which is great in some respects, but not all students appreciate digital books. Many e-books offer additional services, such as online tutoring, which will also come at an additional cost. An e-book means you need something to read it on, so a laptop or tablet is now added to the cost. Again, it is a good investment but adds to the initial cost of college.
There are incidental costs for some majors, such as in the arts, but those are more dependent on the specific major chosen by the student. Education majors will be required to take additional testing for their certification on top of the academic rigors of their institution, which also adds processing fees multiplied by the number of exams required (along with transportation and preparation materials).
As I mentioned before, many college students are looking for internship and travel abroad opportunities to enhance their overall learning and experience in college. These may also factor into the semesterly or yearly costs.
Room and Board
In my experience working in higher education, I have met some students who wanted the “college experience,” which likely translated to drinking, partying, and sex. I’m not here to judge - just be safe. However, for many students, the college they attend will be impacted by geographical factors, including distance and whether being a residential student is necessary. A good way to approach this early in the planning process is to outline a radius of how many miles you are willing to travel for an institution on a map. Sure, that party school in Florida sounds awesome, but it also requires a plane ride and transporting all your stuff hundreds or thousands of miles. Also, if you get homesick, it’s not a simple drive or train ride back.
If, for instance, you find yourself in a position where you do need to dorm for college, that cost will also be factored into your tuition package. Not all dorms are the same, and not all roommates have the same level of respect for cleanliness or personal space.
Let’s take a look at the average costs for room and board depending on the type of institution:
4-year institutions - the range is about $12,000.
Public 4-year on-campus housing an average of $11,520 annually.
Private non-profit 4-year on-campus housing an average of $13,000 annually.
Private for-profit 4-year on-campus housing an average of $32,000 annually.
2-year institutions - the range is $7,300.
Public 2-year on-campus housing an average of $7,000 annually.
Private nonprofit 2-year an average of $10,000 annually.
Private for-profit 2-year an average of $9,100 annually.
Additional expenses can be factored into living on or off campus, but these will vary by lifestyle choices.
Food insecurity is a real issue for many college students – inadequate or inconsistent access to food.
44% of 2-year and 32% of 4-year college students reported anxiety about food supply & affordability.
Due to scarcity, 10% of 2-year and 6% of 4-year college students reported going one or more days without eating.
A small seal to raise your mood.
Closing
I know, that was… a lot. That is why addressing these (and other) factors head-on and early to prevent tuition sticker shock is so important. You can ask financial aid departments of institutions questions – and you absolutely should!
Your counselor is a great resource, but the financial aid department of the institution you are considering applying to/accepting must be at the top of your planning list. You are potentially signing a contract with a lending company or the federal government; you deserve to understand what you are signing off on. The same is true for the tough conversations with immediate family; a person going to college brings about many changes to the family dynamic, including financially.
As I have mentioned in other online posts, a gap year is a viable option for some after high school. Utilized effectively, the time can help foster maturity, reflection, and goal-setting. It also allows the person to work and (hopefully) save for college. Remember, postsecondary education is not compulsory, i.e., you are not required to attend college. If you decide to wait and weigh your options, you might give yourself enough breathing room to make a well-informed decision.
Lastly, keep the perspective that going to college is an investment in yourself, your future, and future generations of family members. You might be the first person in your family to attend college, which might help set a new precedent for other family members. However, investments are not a sure thing, and neither is higher education. You need a plan and support if you wish to be successful. Support in higher education does exist, but just scholarships, you need to take an active role in the process.
I hope this post was informative and not too overwhelming. If it at least gives you a good starting point or inspires follow-up conversations regarding college costs, please let me know in the comments!
As always, please subscribe to keep current on my posts, and share the posts you think might help others! It costs nothing, and a like goes a long way for me.
Respectfully,
Dustin.
This is so helpful! Thank you for the time you spent compiling all of this information.