Rising cost of college

Posted by mybudget in debteconomygovernmentincomeinflation 20 Comment Inflation has a subtle eroding effect that impacts entire economies. In the United States, we have been fortunate to have relatively stable rates of inflation for two generations. Even in times of high inflation like the s, people were able to adjust unlike places that experience uncontrolled inflation like Argentina is currently facing. Also, wages rose in tandem which helped buffer the pain of higher costs.

Rising cost of college

Advertisement Historical Inflation Rates The following table shows the college cost inflation rate and the general inflation rate for the years from through College cost inflation rates are based on the Digest of Education Statistics for the years and the College Board figures for four-year private colleges for the years from to the present.

Statistically, there is no correlation between college inflation rates and general inflation rates. After all, increases in college tuition rates represent a very small percentage of the CPI.

Even the rule of thumb that college costs increase at twice the inflation rate is not valid.


As can be seen from the table, the college cost inflation rate has run from a high of 6. This trend may be ending because of the souring economy. Please note that the College Board annually recomputes the base year cost averages when it calculates the current year averages.

The new base year cost averages can and often do differ from the averages reported during the previous year. As such, the College Board figures are not based on an index like the general inflation rates.

The College Board reevaluated its methodology for the academic year, but did not make any fundamental changes other than improving the explanations of their methodology.


Since the Consumer Price Index includes a "College tuition and fees" component, it is possible to use that component as an index of historical tuition inflation. It reflects consumer spending on college tuition during the calendar year and is based on the same methodology as the Consumer Price Index.

The second table provides these figures. Note that these figures show an average tuition inflation rate from to of 8.


The cumulative difference from to is three quarters of a percentage point per year.Anyone who shops for food has seen rising prices and shrinking package sizes its very sad how the middle class in America has been systematically destroyed. The Hamilton Project seeks to advance America's promise of opportunity, prosperity, and growth.

Rising cost of college

What are the trends in the cost of college education? Response: For the –16 academic year, annual current dollar prices for undergraduate tuition, fees, room, and board were estimated to be $16, at public institutions, $43, at private nonprofit institutions, and $23, at private for-profit institutions.

- The Washington Post

In , the average aid and tax benefits totaled $ more than the cost of tuition and fees. In , it was $ more than tuition and fees.

Average aid can exceed average net tuition and fees -- students still must fund other expenses, like housing, food and . Watch video · The price of college tuition has spiked in the last 30 years. Money Here’s how much more expensive it is for you to go to college than it was for your parents as the rising cost of.

As American college students get ready for the new semester, many of them and their families have more on their minds than homework: the problem of paying is a national one.

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