NATION Studies show rise in college costs

The average tuition increase among four-year public colleges is the largest in a decade, a study shows.
WASHINGTON -- College tuition and fees increased an average of 5.8 percent at four-year private institutions, 9.6 percent at four-year public institutions and 7.5 percent at two-year public institutions in the 2002-03 school year, according to two studies recently released by the College Board.
And a record $90 billion was available in student financial aid in 2001-02, with increases in grant aid outpacing loan aid for the second consecutive year, the studies show.
The increase in student aid is particularly important in light of the recent economic downturn, according to College Board President Gaston Caperton. "Many college-bound students and their families are affected by the struggling economy," he said. "As the cost of college rises, the availability of student aid becomes increasingly critical to a student's ability to attend college and pursue academic goals.
"... But we must do more to ensure that college remains affordable, and that more students who have the preparation and desire, have access to higher education."
The average dollar amount of the tuition increase is $356 for four-year public institutions and $127 for two-year public institutions, according to the "Trends in College Pricing 2002" report. The increase among four-year public colleges is the largest in a decade.
Tax revenue
The tuition and fee increases at public institutions can likely be linked to their dependence on a shrinking tax revenue base, Caperton said.
"As tax revenues decline, public colleges have searched for other sources of funding, and for many that has led to tuition increases," he said. "But despite this year's increases, public colleges and universities are still a remarkable value."
Despite the rising tuition and fees, Caperton said that over the last decade tuition growth at four-year colleges and universities was less than 40 percent, after adjusting for changes in consumer prices -- much lower than the increase of abut 60 percent during the preceding decade.
Financial assistance
The College Board's "Trends in Student Aid 2002" delivers good news for students looking for assistance in financing a college education. The College Board reports that student aid reached more than $90 billion in 2001-02, an increase of 11.5 percent over the preceding year (or 10 percent after adjusting for inflation.) Over the past decade, total aid has increased by 117 percent in constant dollars.
For the second consecutive year, grant aid grew more rapidly than loan aid to college students, However, the decade-long trend finds growth in loans outpacing growth in grant aid. In 1991-92, loans accounted for 47 percent of student aid, compared to 54 percent in 2001-02. Grants declined from 50 percent to 39 percent of total aid over this time period.
Caperton urged students and parents alike to weigh the cost of a college education against the value it will bring over a lifetime. College graduates can still expect to make an average of $1 million more over their professional lives than can their high school graduate counterparts. And the value of a degree is actually heightened in a weak economy. According to a recent study, 1.1 million new jobs for college graduates were added over the last year, while 2 million nondegree jobs were eliminated.
"In addition to potential financial gains, it is more important than ever that we encourage our students to pursue a college education. It is the best investment we can make to foster knowledgeable and empowered citizens," Caperton said.