Contrary to popular belief, the cost of attending college in the United States has decreased over the past decade, according to a recent study by the nonprofit educational research and testing organization College Board.
The nonprofit found that students at public universities are now paying considerably less than they were ten years ago. The average in-state tuition at public universities has dropped by 4 percent when adjusted for inflation and now stands at $11,610 per year. However, the largest drop is seen in the actual amount students pay after receiving grants and financial aid, which has plummeted by over 40 percent from $4,140 to $2,480 annually.
“We know that during COVID, a lot of institutions—public and private—froze tuition,” said Jennifer Ma, an executive research scientist at the College Board and the lead author of the study. Ma explained that increased funding from states and the federal government in response to the pandemic allowed colleges to reduce attendance costs.
This decrease in costs has led to a reduction in student borrowing. The College Board’s data reveals that less than half of students attending in-state public universities now graduate with debt, down from 59 percent a decade ago. For those who do borrow, the average loan balance has decreased by 17 percent to $27,100.
Private colleges, while still seeing tuition increases, have slowed the rate of increase compared to years past. According to the College Board, private college tuition has risen by only 4 percent over the past decade when accounting for inflation, reaching an average of $43,350. The previous two decades produced an increase of 68 percent.
The trend toward more affordable education comes at a time when Americans are increasingly questioning the value of a college degree.
A report released in July by Gallup and the Lumina Foundation found that only 36 percent of American adults say they have a “great deal” or “quite a lot” of confidence in higher education—a sentiment that has gradually decreased from 57 percent in 2015.
Since 2020, the two foundations have cooperated to release an annual State of Higher Education Report, analyzing various factors from costs and barriers to enrollment to student retention.
According to a press release from the U.S. Bureau of Labor Statistics, the percentage of high school graduates pursuing college education has fallen to levels not seen in decades.
Despite the trend, research continues to support the long-term benefits of a college education.
A 2021 study from Georgetown University’s Center on Education and the Workforce found that Americans with a bachelor’s degree earn a median of $2.8 million over their careers—some 75 percent more than those with only a high school diploma.
Tuition costs play a crucial role in choosing which school to attend, which was evident for 22-year-old Kai Mattinson, a senior at Northern Arizona University.
“I originally wanted to go to the University of Arizona, but when it came down to tuition and other cost, Northern Arizona University was the best option,” Mattinson said. Discounts and scholarships have reduced her annual expenses from about $39,000 to between $15,000 and $20,000.
Some institutions have taken proactive measures to control costs. One such institution is Purdue University in Indiana, which has maintained its annual in-state tuition at $9,992 for the past 13 years.
Mark Becker, president of the Association of Public and Land-grant Universities, said in a statement that he was pleased with the latest data.
“Institutional efforts to control costs, combined with many states’ efforts to increase investments in public universities and federal investment in the Pell Grant, have increased college affordability and enabled significant progress on tackling student debt,” he said.
The trend of decreasing costs is even more evident at public two-year community colleges, where expenses have fallen by 9 percent over the past decade, according to College Board data.
The data also revealed that the cost of attending out-of-state public universities or private colleges remains substantial, at up to $95,000 annually in some cases. Nevertheless, most institutions offer significant discounts to middle- and lower-income students.
Some private colleges are expanding their financial aid programs. Massachusetts Institute of Technology recently announced that starting in the fall, undergraduates from families with incomes below $200,000 would no longer need to pay any tuition at all.
The Associated Press contributed to this report.