Public college costs rising faster than private

Tuition and fees for public four-year colleges are now $7,020 on average and for private colleges $26,273, the College Board reported Tuesday, with prices rising faster in the public sector.

Colleges and universities have not slashed sticker prices in response to the economic downturn. On the contrary, tuition and fees rose 6.5 percent at public four-year colleges compared with the 2008-2009 school year and 4.4 percent at private, nonprofit, four-year institutions. Those were steeper rates of increase than in prior years, after adjusting for inflation. Over the past decade, annual increases have averaged 4.9 percent at public colleges and 2.6 percent at private colleges.

The good news for students is that most do not pay full price. Students at private colleges received $14,400 in grant aid and tax benefits this year, on average, leaving about $11,900 in tuition and fees to be paid out of pocket. Public students reaped about $5,400 in grant aid, on average, leaving a net cost of about $1,600.

The entire higher education sector has taken a beating in the recession: Private nonprofit institutions have seen their endowments wither and aid requests swell, while public colleges and universities have sustained reductions of 10 percent to 30 percent in state funding.

In this climate, higher tuition "comes as no surprise," said Molly Corbett Broad, president of the American Council on Education, an association of higher education institutions based in the District. As state budgets continue to shrink, she said, "my concern is that we may soon face a period where significant tuition increases may be necessary to counterbalance the current fiscal instability."

One College Board report, Trends in College Pricing 2009, shows that sticker prices are rising across the board in higher education. Because the Consumer Price Index declined 2 percent from July 2008 to July 2009, the price increases look even bigger after adjusting for inflation. Total charges, including room and board, reached a stomach-churning $35,636 this year at the average private college and $15,213 at the average public institution. Nearly two-thirds of students attend colleges that charge tuition and fees between $3,000 and $12,000.

A second College Board report, Trends in Student Aid 2009, shows that financial assistance is rising at a similar clip, creating a widening gap between the published price of college and the amount students are actually expected to pay. The average undergraduate student received $10,185 in grants and loans in the 2008-2009 academic year, the latest data available. That sum has risen sharply over the past decade in inflation-adjusted dollars. In the 1998-1999 academic year, average aid per student totaled $6,688.

The report found that public four-year colleges awarded about two-thirds of their own grant funds for academic merit, rather than financial need. That finding suggests the colleges are focusing more on the academic pedigree of their students and less on access for those from low-income families.

Lauren Asher, president of the Institute for College Access & Success, said it was "particularly disturbing that public colleges are using such a large share of their financial aid resources for so-called 'merit aid' in these tough times."