The cost of attending college has reached a point where some institutions are charging close to six figures a year. This steep cost includes not only tuition and fees but also room and board, books, transportation, and other miscellaneous expenses. According to data provided by The Princeton Review’s “The Best 389 Colleges” list, several prestigious schools such as New York University, Tufts, Brown, Yale, and Washington University in St. Louis have a sticker price exceeding $90,000 for the 2024-25 academic year. The trend of tuition adjustments averaging around 4% annually may make the $100,000 mark a reality for these institutions and others by 2026.
The Impact on Student Decision-Making
The exorbitant cost of college can have a discouraging effect on students, especially those from low- and moderate-income families. Sameer Gadkaree, the president of the Institute for College Access and Success, emphasizes that such high prices make college simply unaffordable for many individuals. A significant factor contributing to these increasing costs is the reduction in state funding for higher education, shifting more of the financial burden onto students. While elite institutions may be setting record prices, it’s important to note that they represent only a small portion of the higher education landscape. The majority of colleges are community colleges or state universities with more reasonable prices.
Despite the rising cost of college, the majority of students and their families do not pay the full sticker price out of pocket. According to Sallie Mae’s “How America Pays for College” report, the average amount families actually spent on educational expenses in the 2023-24 academic year was $28,409. Parental income and savings cover almost half of college costs, scholarships and grants provide over a quarter, and student loans make up the rest. The U.S. Department of Education allocates approximately $120 billion annually to assist students in financing their higher education.
While federal aid and scholarships can help alleviate the financial burden, accessing these resources may prove challenging for some students. The Free Application for Federal Student Aid (FAFSA) serves as the primary gateway to federal funding, including loans, work-study programs, and grants. However, issues with the new FAFSA process have deterred many students and their families from completing the application. As a result, FAFSA submissions were down nearly 10% nationally in 2024 compared to the previous year. This decline in financial aid applications could potentially impact college attendance rates.
Opportunities for Assistance
Despite the concerns surrounding college affordability, there are institutions that are actively addressing students’ financial needs. Editor-in-chief of The Princeton Review, Robert Franek, highlights that private schools often have more resources available to offer financial aid. While the high sticker prices can be daunting, many schools are committed to meeting the demonstrated financial need of students and families. This commitment to providing financial assistance represents a positive aspect of the higher education landscape amidst rising costs. Ultimately, it is crucial for students to explore all available options for financial aid and make informed decisions regarding their college education.