College costs are accelerating in price, according to a new study released this morning.
From the NYT:
Tuition and other costs, not including room and board, rose to $6,185 at public four-year colleges this year, up 6.6 percent from last year, while tuition at private colleges hit $23,712, an increase of 6.3 percent. At public two-year institutions, average tuition and fees rose 4.2 percent to $2,361.
Last year, tuition and fees at public institution rose by 5.7 percent; at private ones, by 6.3 percent and at public two-year institutions, by 3.8 percent.
“The average price of college is continuing to rise more rapidly than the consumer price index, more rapidly than prices in the economy,” Sandy Baum, a co-author of the report who is a senior policy analyst for the College Board and a professor at Skidmore College, told reporters at a news conference this morning. She added that the prices “are probably higher than most of us want them to be.”
Even after taking into account grants and other forms of aid, the cost of college is going up faster than both the cost of other goods and services and family incomes. “Consumer prices have risen by less than 3 percent a year, while net tuition at public colleges has risen by 6.6 percent and at private ones, 4.6 percent,” the NYT said.
The numbers seem to indicate that families are making up the difference by taking out more loans, with private loans continuing to be the fastest growing form of borrowing.