College Costs Go Up; Student Aid Goes Down

The College Board released two reports today that focus on trends in college tuition prices as well as the state of student financial aid. The reports show that tuition costs are up for both public and private colleges and universities. Federal student aid is not quite keeping up with the increases when adjusted for inflation, despite new grant programs. The student aid report also shows that more and more students are borrowing from the private sector.

The report, "Trends in College Pricing 2007" shows that tuition costs for public colleges and universities have increased in the last year, but that the increases are slightly lower than the average tallied over the last five years. "Trends in Student Aid 2007" reports that aid is up, but when adjusted for inflation, aid packages are lower than past years.

Private colleges and universities are showing similar trends, but the 2007-2008 price hike is actually higher than the five-year average. Still, the increase in costs at private institutions is slightly lower than the increases as public institutions, percentage-wise. At public universities, the increase in tuition and fees is 6.6 percent, whereas at a private four-year school the tuition and fees increase is 6.3 percent. When other costs are factored in, such a room and board, both public and private costs have increased the same amount, just under 6 percent (5.9). The total charges for out-of-state students at public schools increased slightly less at 5.4 percent. Of course, these numbers are an average across the country. The reports show that some students are only experiencing a 3 percent increase, and others are seeing increases in the 9 percent range.