Report: Students Are Paying Less Despite Rising Cost of College
Credit: DNY59 / E+ / Getty Images- College tuition costs have risen steadily year over year, but students are paying less on average than they did in peak years in the 2000s and 2010s.
- According to the report by the College Board, despite community college also becoming more expensive, financial aid covered first-time, full-time, in-district students’ tuition and fees since 2009-10.
- Community college is free in 35 states, and tuition is free at some four-year colleges and universities in 38 states.
It’s old news that college costs have steadily risen since the 1960s, but a new report found students are actually paying less than they used to.
The College Board report highlights trends in college pricing and student aid. It found that while the sticker price of college has risen year over year, the average amount that students actually pay after financial aid has decreased in the past two decades after adjusting for inflation.
Average public in-state tuition and fees for the 2024-25 academic year rose to $11,610, up $300 from last year. Out-of-state tuition and fees rose by $940 to an average of $30,780.
First-time, full-time, in-state students at these institutions have been paying almost $2,000 less ($2,480) on average in 2024-25 than when students’ paid tuition and fees peaked in the 2012-13 year ($4,340), after adjusting for inflation.
Even students at private institutions are paying less. First-time, full-time students spent an estimated $16,510 in the 2024-25 school year compared to students in 2006-07, when the tuition and fees they paid peaked at an average of $19,330.
Private institutions have been at the forefront of making education more accessible for students whose families may not have been able to afford the schools’ tuition and fees.
While many private schools offer qualifying students free tuition, Ivy League schools like Princeton University, Harvard University, and Yale University go a step further and provide a completely free education for families making less than $100,000.
While students are paying less, graduates have never been more in debt. The collective $1.6 trillion in student loan debt has outpaced tuition increases.
In a previous interview with BestColleges, Adam Looney, a professor at the University of Utah, cited some reasons for this loan debt. One possibility is students from higher-income families take out more loans to compensate for higher tuition. Another reason could be students are choosing “more expensive” programs at four-year colleges rather than community colleges, where it’s rare to borrow.
Average 2024-25 tuition and fees for students at public two-year, in-district colleges was $4,050 — $100 higher than last year. On average, first-time, full-time, in-district students at two-year colleges have had enough financial aid to cover their tuition and fees since 2009-10.
According to a BestColleges survey, most Americans favor free community college.
President Joe Biden attempted to integrate free community college into his 2024 budget, but the bill stalled in the U.S. Senate last October. That hasn’t stopped states like Colorado and Michigan from giving their states’ residents free tuition at local community colleges. Students in 35 states can attend community college for free.
Even though students are paying less, rising tuition costs disproportionately affect Black, Asian, and Hispanic and Latino/a immigrants — and it continues even a few generations down the line, according to a report by the Institute for Higher Education Policy.
First-generation Black immigrants had $9,106 in unmet financial need, while their descendents faced almost the same need, the report said. In contrast, white immigrants had $3,442 in unmet need, with their descendents being able to fully afford college and having $805 left over.
How Students Can Qualify for Free Tuition
Colleges and universities in 38 states offer free tuition. Most of these schools have several requirements to qualify, but some — like Berea College and Curtis Institute of Music — give free tuition to all students.
Some of the most common requirements include:
- Filling out the Free Application for Federal Student Aid (FAFSA) or state financial aid application
- Living in-state or within a certain geographic area
- Being from a family making at or under a certain amount per year
- Earning a certain minimum GPA
- Earning a degree for the first time
- Being a first-year or transfer student
- Being Pell Grant-eligible
- Being within a specific age range
If you’re an undocumented or a Deferred Action for Childhood Arrivals (DACA) student, you may still qualify for free tuition at some colleges or be able to apply for student aid through your state rather than the federal government. Some colleges also offer free tuition to Native American students.