College Tuition Inflation: The Rising Price Of Education

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College tuition costs have increased, with tuition and fees, including room and board, at four-year institutions climbing from roughly $11,840 a year in 1981-82 to $24,920 a year at in-state public schools for the 2024-25 academic year.

Record inflation coupled with increased costs for overhead is forcing institutions to raise everything from tuition and fees to room and board to keep up with costs. However, there are still a few ways college students can successfully navigate rising prices.

Key tuition inflation statistics

• The average cost of tuition and fees for the 2024-25 academic year at public four-year colleges was $11,610 for in-state students and $30,780 for out-of-state students.
• The average cost of tuition and fees for the 2024-25 academic year at private nonprofit four-year colleges was $43,350.
• The average annual rate of college tuition inflation is 8 percent.
• During the COVID-19 pandemic, tuition inflation slowed down to one of the lowest levels in three decades. In 2020-21, tuition prices for in-state students at public four-year colleges increased by 1.1 percent, while tuition prices at private four-year colleges increased by 2.1 percent.
• The cost of tuition and required fees at public universities in the U.S. has over tripled since 1980.
• As a nation, the U.S. collectively owes well over $1.78 trillion in student loan debt.
• College enrollment has been steadily declining. Data from the National Student Clearinghouse shows that, despite undergraduate enrollment being on the rise, first-year enrollment in undergraduate degree programs was down 5 percent for the fall 2024 semester, year over year.

College tuition inflation over the years

From 1981-82 to 2024-25, the cost of attending a four-year college in the U.S. has ballooned from $11,840 a year to $24,920 for in-state students. That cost includes tuition and fees, plus room and board, after being adjusted for inflation.

Although both public and private colleges have experienced a substantial increase in costs over time, attending a public school is still much more affordable than attending a private one.

On average, it cost undergraduate students 73 percent less to attend a four-year public college in their state than a four-year private school in the 2024-25 academic year.

College tuition inflation by state

The cost of college varies not only by the type of institution you attend (public versus private), but also by state. For example, data shows tuition inflation has dropped by 10 percent overall in the United States over the last five years. However, tuition inflation increased 12 percent over the same timeline across schools in the state of Missouri.

This chart shows how tuition inflation increased or decreased in various states over the five years leading up to the 2024-25 academic year.

College tuition inflation by school

Aside from the type of college and state where the school is located, tuition inflation also varies by school. At the University of Georgia, for example, in-state tuition and fees have decreased 23 percent over the last five years. At the University of Missouri, Columbia, tuition and fees have increased by 18 percent over the same time.

Why is college so expensive?

College costs are rising for a number of reasons, including high inflation and an overall increase in the cost of living. However, these are not the only contributing factors.

“One of the more headline-grabbing reasons that many experts cite for college tuition inflation being higher than ‘average’ inflation is that institutions are offering more and more amenities, modern housing, state-of-the-art facilities and staff to increase the student experience,” says Derek Brainard, national director of financial education at AccessLex Institute.

However, Brainard admits that although more services and better amenities are key drivers of college costs, they don’t tell the whole story either. For instance, over the last decade, enrollment at postsecondary institutions has been dropping consistently. Fewer students mixed with rising costs means a higher cost per head.

Some students are also taking longer than others to graduate from school. Inevitably, this leads to higher costs for degrees as additional semesters of tuition and fees are tacked onto the total. There are also students who drop out for personal or economic reasons, and those who switch schools midway through their programs to pursue a different type of degree.

According to the National Center for Education Statistics, only 64 percent of students who were pursuing an undergraduate degree for the first time in 2014 had graduated from a program at the same school by 2020.

How to navigate increasing college costs

Although college’s increasing prices are out of our control and tuition will likely continue to go up over time, there are several ways to make your education more affordable.

• Go to community college first. If you can complete some of your courses at a community college before transferring to a four-year school, you can save on tuition and fees. CollegeBoard data shows that tuition and fees at public, two-year (in-district) schools came in at $4,050 nationally for the 2024-25 academic year.
• Attend a public, in-state school. Public, in-state schools cost considerably less on average than out-of-state or private schools, thus you can likely pay less for a degree by attending a public college closer to home.
• Choose a degree with a positive return on investment (ROI). If you are looking to use postsecondary education solely as a way to step into a career, make sure the degree you want to earn will actually pay off. A study from FREOPP reveals a range of programs that have no ROI, or even a negative ROI.
• Apply for scholarships and grants. Beyond filling out the Free Application for Federal Student AID (FAFSA), you should also apply for as many scholarships and grants as you can. At the very least, apply for funding options you believe you’re likely eligible for.

Bottom line

While you cannot do anything about tuition inflation at colleges and universities nationwide, you can make educated choices about your degree and school of choice. This means comparing college costs across a wide range of institutions, then seeing what kind of return the degrees you’re interested in could bring over the next 20 to 30 years.

You can also attend community college for the first few years before transferring to a four-year school, and you can apply for scholarships and grants that can drive college costs down further. By making these moves and others over the course of your college career, you can pay less for college and reduce or avoid student loan debt.

Frequently asked questions

• What is college tuition inflation?
  

  College tuition inflation is the rate at which the cost of attending college fluctuates compared to previous years. This rate is usually expressed as a percentage and is influenced by factors such as demand, cost of living and value of a degree.

• How much does it cost to attend college?
  

  In-state students at public four-year colleges pay an average of $24,920 annually, including tuition, fees, room and board. Out-of-state students pay an average of $44,090, while students at private four-year colleges pay an average of $58,600.

  However, these costs are just estimates. You may pay more or less depending on the school you attend, where it’s located and how much financial aid you qualify for.

• Why is college important?
  

  Although affording college may be challenging, a college education is still the best way to get a good-paying job. According to the latest data by the Bureau of Labor Statistics, those with a bachelor’s degree earn about $625 more per week than workers with just a high school diploma.

• How do you pay for college?
  

  The first step to making your college education more affordable is filling out the Free Application for Federal Student Aid, also known as the FAFSA. This will give you access to different types of aid, including grants, work-study programs and federal student loans.

  Then apply for scholarships. Scholarships are a form of gift aid, meaning you don’t have to pay them back. You can find scholarships at local organizations and associations or by checking out scholarship search websites, such as Chegg and Unigo.

  Once you’re done searching for gift aid, you can turn to private student loans. These are generally less favorable than federal student loans since private loans don’t offer the same breadth of repayment plans and may be more expensive in the long run.

  A student loan calculator can help you run the numbers to see how much you’ll pay. Just make sure you check current student loan rates to see what you might be paying in the long run.

  Finally, find out whether your employer offers tuition assistance if you’re employed. This can be either reimbursement or assistance with student loan repayment once you graduate. It’s as easy as calling your HR department and asking.