| Student Aid Increases Faster than Tuition at Private Colleges |
 |
|
MICUA Matters Fall 2011
Published tuition and fees at private, nonprofit colleges and universities are increasing an average of 4.6 percent for the 2011-12 academic year, while institutional student aid is growing by an average of 7 percent, according to a survey of member institutions conducted by the National Association of Independent Colleges and Universities (NAICU).
Over the last three years, published tuition increases have held steady in the mid-four percent range. This compares to an average annual increase of 6 percent during the 10 years prior to the economic downturn.
This fall’s 7 percent increase in institutional student aid comes on top of 9 percent and 6.8 percent increases, respectively, in 2009-10 and 2010-11. (This is only the third year NAICU has collected student aid figures from its member institutions as part of the annual tuition survey.)
“In response to the economic downturn, private colleges have worked to slow down tuition increases, while increasing institutional student aid at a faster rate,” said NAICU President David L. Warren.
Large investments in institutional student aid have helped to actually reduce inflation-adjusted net tuition (published tuition less all grant aid and federal higher education tax benefits) at private colleges in the past five years. According to the College Board, inflation-adjusted net tuition and fees at private colleges declined 11.2 percent, from $12,750 in 2005-06 to $11,320 in 2010-11.
In 2010-11, published tuition and fees at private colleges and universities averaged $27,293, according to the College Board. However, average net tuition and fees for full-time students dropped to $11,320, after grant aid from all sources and federal tax benefits. (NAICU’s annual tuition survey collects percent increases, but not dollar amounts.)
“Because of generous student aid policies and high four-year graduation rates, private colleges are a great value for many consumers,” said Warren. “Students and families owe it to themselves to consider all their options. It pays to shop around.”
|