College: Not so expensive
Finally got around to reading the USA Today article I've seen linked several places. (Most recently at PoliBlog.)
What students pay on average for tuition at public universities has fallen by nearly one-third since 1998, thanks to new federal tax breaks and a massive increase in state and federal grants to most students and their families.
Contrary to the widespread perception that tuition is soaring out of control, a USA TODAY analysis found that what students actually pay in tuition and fees — rather than the published tuition price — has declined for a vast majority of students attending four-year public universities. In fact, today's students have enjoyed the greatest improvement in college affordability since the GI bill provided benefits for returning World War II veterans.
What made the difference: a $22 billion annual increase in grants and tax breaks since 1998.
That 80% jump in financial aid — targeting middle-class families earning $40,000 to $100,000 a year — has more than offset dramatic increases in tuition prices.
As sort of a side issue, I'd also point out that over the past few years tuition hikes at public colleges have not been a result of increases in the cost of education, but rather by declines in the taxpayer subsidy that reduces tuition below cost. In Missouri, aid to higher ed was among the first spending cut by the legislature in dealing with the revenue slump. I recall that it was much the same in other states.
When those tuition hikes were going on I'd noticed that most colleges were still having record or near-record admissions; so I figured that, even with the hikes, tuition was still well below the market price. Little did I know that the net price was actually dropping.
Posted by Chip on June 29, 2004 at 06:29 AMI wonder, however, if the returns to a college education is beginning to decline -- therefore making "what you get out of it" argument somewhat less valuable. So many people are getting a college education and saturating the college-educated job market that sometimes I think it's messy to tell what the overall picture ends up looking like after taking into account all these multiple tradeoff scenarios, i.e. price of college, type of major, prestige of college, total earnings, etc.
Posted by: Adora at June 29, 2004 10:37 AMLittle that I know now, colleges are hard to find, and the amount of money, well I can't hardly afford it even my parents don't have enough money to pay for it. I notice alot of changes going on to colleges this year. their tuition is increasing and so as their cost and financing almost everything. I absolutely consider having colleges that many undergraduate students can afford so they can continue on with their lives.
Posted by: Lourdes Husseini at July 9, 2004 05:35 PM
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