The CollegeBoard, the non-profit organization that administers the SAT exam and tracks a great deal of higher education information, reports that the average, annual cost of attendance (tuition and fees, room and board, books and supplies, transportation and other costs) at a U.S. college or university typically represents anywhere from 10 to 60 percent of a family’s income (www.collegeboard.com, 2008).
For those of you who have students who will live on campus or who will be attending an out-of-state college or university (where nonresident tuition rates can be up to as much as three times higher than those paid by resident students), the impact on the annual family income can be even greater!
Good gosh, that is a lot of money! Why does college cost so much?!? The truth of the matter is that private, state and federal funding for higher education of any kind has decreased significantly over the last few years. This means more and more colleges are subsidizing (paying for) their own expenses (staff, administration, faculty, space, maintenance, utilities, etc.).
Where do colleges and universities get the money to pay for their operational expenses if it is not coming in from donors or the government? From families and students! Yes, colleges and universities are paying for much more of their costs out of the money you pay them in tuition and fees (including room and board fees). Which means as campus costs increase, families and students will end up paying more to attend college or university.
Shouldn't the government pay for college? Maybe yes, maybe no. The issue of who should pay for a higher education or who should bear the greater burden of these costs is sticky. What it boils down to in most cases is who benefits more: the state or the individual? The state benefits economically and socially from an educated population. Individuals also benefit economically and socially from higher education. Who benefits more? That's a toss-up.
But, the reality is that even though families and students are being asked to shoulder a larger portion of their educational costs, most families and students do not pay the actual sticker price (the published rate for tuition and fees) set by the college. Most families and students can reduce the sticker price and pay a discounted rate. However, to get to the discounted rate, you have to know what and how much is available, who provides the discounts, who qualifies and how you apply.
And just think, next year you'll pay a little more. Isn't life grand?
Until next time!
Lynn Byrne
Preparing for college admissions? Trying to find direction? Need a little help with the planning? Check out my college planning series:
- College Planning Made Easy--the planning and preparation workbook for the take charge, college-bound student,
- Paying for College Made Easy--a college financing guide designed to assist students and families in preparing and planning for higher education expenses; and
- The Great Scholarship Search--my guide for students and parents researching and applying for scholarship funding.
