Data released this week by The College Board’s Trends in Higher Education series, Education Pays 2013, Trends in Student Aid and Trends in College Pricing, reported that despite increases in college costs and decreases in financial support, investment in higher education pays off in the long run.
Tuition is on the Rise. Each year colleges raise their tuition and fees, affecting the finances of many students and their families across the nation. Despite the increases in tuition and fees, 2013-2014 was a promising year with only a 2.9 percent increase for in-state public four-year institutions, the smallest year-to-year percent increase in over 30-years. Private non-profit four-year institutions increased by 3.8 percent, only slightly lower the than previous year.
Federal Grants are diminishing. Financial support from federal grants is failing to compensate for the increase in tuition prices. In previous years as prices increased, many students benefited from comparable increases in federal grant aid and government tax benefits. However, between 2010-11 and 2012-13, federal grants have declined requiring students to actually pay more for their college.
Total Student Aid and Nonfederal Loans Used to Finance Postsecondary Education Expenses in 2012 Dollars (in Millions), 2002-03 to 2012-13
Source: The College Board, Annual Survey of Colleges; National Center for Education Statistics (NCES), Integrated Postsecondary Education Data System (IPEDS).
