As a part time MBA student, with a single income and young family, I am particularly sensitive to rising education costs. So I was dismayed to see that my university’s (already expensive) tuition costs were again rising. This is the third year in a row and my degree will end up costing roughly 10% more than what it was quoted when I enrolled! The tuition increase is almost 100% higher than the average increase in inflation. This though is in line with the general rule of thumb that tuition rates will increase at about twice the general inflation rate.
Tuition for the coming academic year has been finalized and was recently communicated by university officials. There will be a 5% increase resulting in a per-credit rate of $1,455 for the XXX Program. This rate will be effective for the fall 2012, spring 2013, and summer 2013 semesters.
The above note from our associate dean of student services prompted me to research how my school’s increase compared across the tertiary education space. The college board released a recent study that showed that 2011-12 tuition rates at the average public university jumped 8.3% to $8,244. This is higher than the rise over the past decade, where tuition and fees for in-state students at public colleges increased an average of 5.6% a year above inflation.
Based on my other online research, the 5% increase I saw for my program is actually in line with what other schools have enacted. Unfortunately with further federal and state education subsidy cuts it looks like tuition rates are set to continue rising.
Finally, another impact of higher education costs, particularly for graduate students who put off working to study, are the opportunity costs. While the tangible costs of college are tuition and fees, you are also paying the opportunity cost of time away from work (and family)– that is, if one were not in college, what productive activity could one be doing instead? If I didn’t have to pay education costs, I could invest that tuition money or even take a second job for example.
Have education costs risen in your college or university? By How Much?
1 thought on “College and University Tuition Rates Increasing”
First, I am sorry for the additional burden of tuition increases on your family : ( Our daughter graduated from Metroplitan State University in St Paul, MN, December 14, 2011 with a BS in Law Enforcement. Yay! Boo to no job openings in her field, (as a mom, this may not be a bad thing, but I do want her to be happy with work choices…) as she is not willing to move. She is working a temp to hire position (at least learning valuable business skills) as an Executive Assistant (REALLY!! with a BS degree???). Anyway, to the point – It took her 5 years to complete her degree. MN has reciprocity with 5 surrounding states. As a result, the University of MN pretty much dictates tuition increases for all. Her first year she went to University of North Dakota. The year she started there was a 25% increase her first year compaired to the past year. The second year, yet another 25% increase. OUCH! She managed to complete with 22,000 in student loan debt. Since we are middle income family, her first 3 years she only qualified for very small (2K??) each year of Federal loans because according to FAFSA, we could pay!! We took out private loans at 6 and 12% (Seriously – our credit is excellent – who can explain THIS??). The last year she received grants because of her income. The Federal Government can talk all they want about making student loans available but until tuition is under control it is a huge burden to working class families. Everyone else these days has to watch their budget, it is a shame those who offer higher education don’t. Salaries, pensions and curriculum should all be examined as a way to cap these increases. My husband and I now live in FL. Our scum bag governor finally did something that I agree with this week … (miami herald)……………Despite an annual limit cap, tuition in Florida’s public univerisites increased 60 percent during academic years 2009 to 2012. The bill Scott vetoed Friday would have removed the preexisting limit of 15% tuition hikes per year, allowing both the University of Florida and Florida State University to raise costs at a higher rate.