Inflation is hiking tuition costs | College Connection
College tuition has joined the list of expenses that are rising because of inflation.
Many colleges kept their tuition flat over the past couple of years as the world of academia struggled through COVID-19, closing dorms and resorting to remote learning. But with inflation at a 40-year high, colleges are joining the long list of entities that are passing on their increased cost of doing business.
According to statistics provided by Money, Penn State trustees approved a 5% tuition increase for in-state students at its flagship campus – University Park – to go into effect this fall. Boston University approved a 4.25% tuition hike, its largest in 14 years. Syracuse University voted in a 4.5% tuition increase, and University of Southern California (USC) raised its tuition by 5%.
Even at colleges where tuition is remaining stable, students and parents may feel the economic pinch. Student fees may increase significantly at state universities which are subject to a tuition cap. Also, out-of-state, international and graduate students may face a tuition hike, even at universities with in-state tuition caps.
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But all hope is not lost. Tuition and fee increases apply to a school’s “sticker price.” Many families may qualify for additional financial aid – preferably in the form of grants (that do not get paid back) – to stabilize their out-of-pocket costs.
“Private colleges, in particular, are known for hefty tuition discounts,” according to Marjorie Hass, president of The Council of Independent Colleges. “As the listed tuition price goes up, tuition discounting goes up in step. What has happened is institutions have given out more and more financial aid to close the gap between what a family can afford to pay and the real cost of their education.”
The average tuition discount at private nonprofit colleges reached a record high last year, according to statistics released by the National Association of College and University Business Officers. The discount for first-time undergraduates reportedly reached 54.5% –meaning that colleges forgo more than half of their “sticker price” tuition. So not all tuition increases are passed on to college students and their families.
As each student’s situation – and tuition bill – can vary greatly, it’s important for students and parents to be cognizant of the costs they are agreeing to pay and the debt they may be assuming.
Susan Alaimo is the founder and director of Collegebound Review which, for the past 25 years, has offered PSAT/SAT® preparation and private college advising by Ivy League educated instructors. Visit CollegeboundReview.com or call 908-369-5362
This article originally appeared on MyCentralJersey.com: Inflation is hiking college tuition costs
