Bad news, Mom and Dad.
The non-profit College Board reported that tuition and fees at state colleges and universities rose more than 8% last year.
To put the price increase into context, the 8.3% spike is more than twice the inflation rate of 3.6%. Meanwhile family earnings continue to fall across all income levels.
We’ve been monitoring and reporting on this for a while now. We knew tuition costs were going up, but I frankly didn’t expect the numbers to be this bad. The sluggish economy is causing a drain on state revenues and education is getting hit hard. According to the report, state funding per student has plunged 23% over the last decade.
That’s an eye-opener.
Given this environment, finding financial aid is more important than ever. It also may be wise to give extra consideration to private colleges and universities that may be in a position to provide more college aid.
We’ll keep an eye on this for you. And continue to find ways for families to reduce their out-of-pocket college costs.
Approximately two-thirds of undergraduates at public four-year colleges receive grant aid. The average grant-award last year was $6,539.
Borrowing by students and parents rose 2% from 2009-10 to 2010-11. Last fall, President Obama announced a plan that will allow borrowers to cap student loan payments at 10% of discretionary income.
Stay tuned, and we'll keep you posted.