College prices up again even as economy falters
http://news.yahoo.com/s/ap/20081029/...tHkbJWNNZvzwcF
Amid the economic turmoil, students and their families are getting little relief from rising college costs, which jumped 6.4 percent at state universities this fall, according to new figures out Wednesday.
And with states aggressively cutting budgets, big increases look almost certain next year, too — if not sooner. At least two states — Rhode Island and Michigan — already have taken steps toward raising prices before next fall, and a half-dozen others are reportedly considering unusual midyear increases.
For the current academic year, the average list price of tuition and fees at four-year public universities rose $394, or 6.4 percent, to $6,585 for in-state students. At private colleges, prices rose $1,399, or 5.9 percent, to $25,143, according to the annual "Trends in College Pricing" report from the College Board.
It's important to remember many students don't pay the full list price. On average, students receive about $3,700 in grants and tax benefits at four-year public schools, and $10,200 at private institutions.
When room and board is added in, some high-tuition private institutions can total $50,000 a year or more. Overall, though, more than half of four-year college students attend institutions where the list price for tuition and fees is under $9,000.
Still, while spending on financial aid is increasing, it hasn't kept up with price increases.
The report emphasized that, accounting for overall inflation, prices rose less than 1 percent this year, and actually declined at public two-year colleges. But that's only because overall inflation was unusually high — about 5.6 percent.
"No one really thinks it's easier to pay for college just because other prices have gone up," said Sandy Baum, economics professor at Skidmore College and senior policy analyst at the College Board. While families may postpone other big-ticket items, "It's harder to wait to go to college than to wait to buy a car," she said.
Public two-year colleges once again were the biggest bargain — and did the best job holding down prices. Average list prices there rose $108, or 4.7 percent, to $2,402. But factoring in financial aid, the College Board estimates the average net cost is only about $100.
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Originally Posted by Trigg
