June 27, 2011

Sticker Price is Up, but Net Price is Down

According to a new report on Net Price by the College Board, tuition and fees, adjusted for inflation and offset by federal grants and tax benefits, are actually lower than they were five years ago. Although tuition and fees rose steadily over the past five years, grants and financial aid outpaced this growth, leading to a net decrease in the actual average price paid by students. The decrease affected both public two-and four-year institutions and private four-year colleges, but were most marked at private schools, where tuition increased by 4.6 percent and financial aid increased by 7 percent this year.

In all, inflation-adjusted net tuition at private schools has decreased 11.2 percent in five years. At public four-year institutions, low-income students generally received grant money that covered all of tuition and fees, with about $1,720 left over for other educational expenses. These findings seem to suggest a shift to a high-tuition, high-aid model in higher education, especially as state investment in colleges and universities declines.

The College Board reported similar findings last year, a summary of which can be found here. To read more about how the UW seeks to make higher education accessible to all students, check out the financial aid website and the Husky Promise program.