In the past 30 years, the average cost of tuition at public universities has increased by 213% and private schools have also more than doubled their tuition. To go to a 4-year private school with room and board, you are looking at an average of nearly $47,000 per year according to a recent article in Business Insider. You may be surprised to discover the real reasons behind this incredible hike in tuition fees. Here are some of the primary explanations as to why student loan debt has increased in all 50 US states.
- Supply and Demand – Just about everyone wants to college and classrooms are filling up. When private universities reject students due to having a full complement of undergraduates, public schools try to fit them in. However, the increase in demand has driven public schools to hike rates even faster than exclusive private schools.
- Expensive Professors – Private schools compete for the best professors and that means shelling out higher wages and better benefits. The only way to reduce costs would be to expand class sizes, reduce the number of classes each professor offers, and to hire fewer full-time professors. These are all unpopular options.
- Student Services – Healthcare, counselling, and other student services are expanding and costing universities more than ever. The price of these services is being passed along to students in the form of higher tuition rates.
Preparing for the High Cost of a College Education
How can you prepare financially to go to college when costs are constantly rising? College Planning Source can help. Based in southern California, we offer workshops and advice to help you get the need-based and merit-based financial aid you qualify for. To learn more, give us a call today at 858.676.0700.