After COVID-19, Tuition Fees at Public Universities Have Decreased, Students Are Benefiting from Savings
Boston, January 9, 2025 – Over the past decade, the cost of attending university has decreased, particularly at public universities. New research shows that students are now paying significantly lower tuition fees to attend public universities. Meanwhile, the increase in tuition at private colleges has slowed, but costs remain high.
According to data from the College Board, this year, the average tuition for students attending in-state public universities is $11,610, which has decreased by 4% after adjusting for inflation over the past decade. However, the real savings come from the amount of financial aid and grants students receive. This amount has decreased by 40% over the decade, from $4,140 to $2,480.
This reduction in costs has led to less borrowing. Currently, nearly half of students attending in-state public universities graduate with some debt, down from 59% a decade ago. For those who do borrow, the average loan balance has decreased by 17%, to $27,100.
Meanwhile, tuition at private colleges continues to rise, but at a much slower pace. Over the past decade, after adjusting for inflation, the average tuition has increased to $43,350, which is much slower than the 68% increase over the previous two decades.
Many Americans are now questioning the value of a college degree. Recent research shows that skepticism about the worth of a college degree has increased among the public, and as a result, the percentage of high school graduates attending college has fallen to levels not seen in decades. However, studies indicate that, over time, a college degree remains financially rewarding, with individuals holding a bachelor's degree earning a median of $2.8 million over their careers, 75% more than those with only a high school diploma.
The COVID-19 pandemic has been one of the key reasons for the reduction in costs, according to Jennifer Ma, an executive research scientist at the College Board. She explained that during the pandemic, many public and private institutions froze their tuition, and increased government funding helped colleges reduce their costs. However, this funding has since been mostly exhausted, especially after 2022.
Kai Mattinson, a senior at Northern Arizona University, said that the cost of tuition influenced her decision to attend the university. She initially planned to go to the University of Arizona, but Northern Arizona University became the best option due to the lower tuition and other costs.
Purdue University in Indiana, for example, has kept its in-state tuition at $9,992 for the past 13 years, setting a significant example of cost control.
Additionally, tuition costs at public two-year community colleges have decreased by 9%, aligning with improvements in course quality and offering more convenience for students.
However, for parents sending their children to out-of-state public or private colleges, the costs remain high, with some cases reaching as much as $95,000 annually. Nevertheless, many institutions are offering significant discounts for middle- and lower-income students.
Some private colleges, such as the Massachusetts Institute of Technology (MIT), have expanded their financial aid programs, and starting next year, students from families with an income below $200,000 will no longer have to pay tuition fees.
In this scenario, several colleges are opting to reduce their tuition fees, which helps strengthen their position while also reducing students' desire to take on debt.
