This just in: colleges are unable to rein in their costs and keep hiking their tuition bills. For in-state students at public 4-year universities, tuition and fees increased 7 percent after adjusting for inflation between this academic year (2012-13) and the 2010-2011 academic year. During the same period, tuition and fees at all 4-year nonprofit institutions increased 3 percent (to about $24,300), again after adjusting for inflation. The Postsecondary Institutions and Cost of Attendance in 2012-13; Degrees and Other Awards Conferred, 2011-12; and 12-Month Enrollment, 2011-12 data report was released today, May 21, 2013 by the National Center for Education Statistics (NCES).
However, for-profit institutions reported a 2 percent decrease tuition and fees to $15,400. That’s interesting since for-profits have been under pressure to be pickier in which students they admit since new 2011 regulations went into effect. Under these new regs, if for-profits fail to raise graduation rates and train students for careers with high enough salaries, then they risk losing access to federal student aid. Federal student loans are the main source of funding for these institutions; very few students can afford to pay out of pocket.