Trends in College Pricing 2018

Trends in Higher Education Series

Trends in College Pricing 2018

See the Trends in Higher Education website at trends. for figures and tables in this report and for more information and data.

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Highlights

Published tuition and fee prices of colleges and universities were about the same in 2018-19 as in 2017-18, after adjusting for inflation. Published prices rose much more slowly in all sectors between 2013-14 and 2018-19 than over the preceding five years. Growth in grant aid kept the dollar increases in net tuition and fee prices below the dollar increases in published prices. However, increases in grant aid and tax benefits covered a smaller share of the price increases over the last five years than between 2008-09 and 2013-14.

Trends in College Pricing 2018 reports on the prices charged by colleges and universities in 2018-19, how prices have changed over time, and how they vary within and across types of institutions and states. It also includes estimates of the net prices students and families pay after taking financial aid into consideration, both on average and across income groups. In addition, data on institutional revenues and expenditures, combined with trends in enrollment patterns over time, help provide a clearer picture of the circumstances of students and the institutions in which they study.

PUBLISHED TUITION AND FEES AND ROOM AND BOARD Average published in-state tuition and fees in the public four-year sector increased by $250 (2.5% before adjusting for inflation), from $9,980 in 2017-18 to $10,230 in 2018-19. Average total tuition and fee and room and board charges in 2018-19 are $21,370. (Table 1)

Average published out-of-state tuition and fees at public four-year

institutions rose by $620 (2.4%), from $25,670 in 2017-18 to $26,290 in 2018-19. Average total charges in 2018-19 are $37,430. (Table 1)

Average published tuition and fees at private nonprofit four-year

institutions rose by $1,130 (3.3%), from $34,700 in 2017-18 to $35,830 in 2018-19. Average total charges in 2018-19 are $48,510. (Table 1)

Average published in-district tuition and fees at public two-year

colleges increased by $100 (2.8%), from $3,560 in 2017-18 to $3,660 in 2018-19. (Table 1)

Average tuition and fee charges for full-time students in the

for-profit sector were $14,000 in 2017-18. (Table 1)

About three-quarters of full-time students receive grant aid to

help them pay for college. (Page 9)

GROWTH IN COLLEGE PRICES Between 2008-09 and 2018-19, published in-state tuition and fees at public four-year institutions increased at an average rate of 3.1% per year beyond inflation, compared with 4.1% between 1988-89 and 1998-99 and 4.2% between 1998-99 and 2008-09. (Figure 4A)

The 3.1% average annual rate of increase in tuition and fees in

the public four-year sector corresponds to an average annual increase of $270 in 2018 dollars, compared with $170 per year

from 1988-89 to 1998-99 and $250 per year from 1998-99 to 2008-09. (Figure 4A)

In the public two-year and private nonprofit four-year sectors,

published prices are more than twice as high in 2018-19 as they were in 1988-89. The average in-state tuition and fee price in the public four-year sector is about three times as high in inflation-adjusted dollars as it was in 1988-89. (Figure 4B)

VARIATION IN TUITION AND FEES While the median tuition and fee price for full-time students attending private nonprofit four-year institutions in 2018-19 is $36,890, 11% of full-time students attend institutions with prices below $15,000 and 20% attend institutions charging $51,000 or more. (Figure 2)

In 2018-19, average public four-year tuition and fee prices range

from $8,600 at bachelor's colleges and $8,850 at master's institutions to $11,120 at doctoral universities. Average published prices for these types of institutions in the private nonprofit sector are $34,920, $30,450, and $44,020, respectively. (Table 1)

In five states, average published in-state tuition and fees at

public four-year institutions fell between 2013-14 and 2018-19, after adjusting for inflation. In another nine states, the five-year increase was below 5%, but in five states, the increase was 20% or more. (Figure 6)

In 2018-19, average published tuition and fee prices for in-state

students at public four-year institutions range from $5,400 in Wyoming and $6,360 in Florida to $16,460 in New Hampshire and $16,610 in Vermont. (Figure 6)

In 2018-19, average published tuition and fees for in-district

students at public two-year colleges range from $1,430 in California and $1,840 in New Mexico to $7,090 in New Hampshire and $8,190 in Vermont. (Figure 5)

WHAT STUDENTS ACTUALLY PAY On average, full-time students at public two-year colleges receive more than enough grant aid and federal tax benefits in 2018-19 to cover tuition and fees. After this aid, they face an average of $8,270 in living expenses out of pocket. (Figure 8)

The average published tuition and fee price at public four-year

institutions rose by 7% ($640), from $9,590 (in 2018 dollars) in 2013-14 to $10,230 in 2018-19. Over these five years, the average net tuition and fee price rose by 10% ($350). (Figure 9)

After declining from $15,500 (in 2018 dollars) in 2007-08 to $13,200

in 2011-12, the average net tuition and fees paid by full-time students at private nonprofit four-year institutions rose to an estimated $14,600 in 2018-19. (Figure 10)

In 2015-16, more than half of full-time students at public two-year

colleges received enough grant aid to cover all of their tuition and fees. Almost 60% of full-time dependent students from families with incomes below $35,000 at public four-year colleges received enough grant aid to cover their tuition and fees. (Figure 11)

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 Average net budgets after grant aid for students from families

with incomes below $35,000 were $27,860 in the for-profit sector and $19,960 at private nonprofit four-year institutions in 2015-16. (Figure 12)

In 2015-16, the 10% of students at the private doctoral universities

with the highest endowments per student benefited from endowments averaging $1.15 million per FTE student; median endowment per FTE student in this sector was $55,200. (Figure 19)

PUBLIC FUNDING State and local funding per student rose in 2016-17 (in inflation-adjusted dollars) for the fifth consecutive year, following four years of decline. Funding per student fell by 24% from $8,270 (in 2016 dollars) in 2006-07 to $6,320 in 2011-12, and then rose by 21% to $7,640 in 2016-17. (Figure 15B)

In 2016-17, total appropriations were 2% higher (after adjusting

for inflation) than a decade earlier, but appropriations per student were 8% lower. Total appropriations were 38% higher than 30 years earlier, but appropriations per student were 11% lower. (Figure 15B)

In 2016-17, state and local funding for public higher education

ranged from $2,960 per full-time equivalent (FTE) student in New Hampshire and $3,020 in Vermont to $15,820 in Wyoming and $16,390 in Alaska. (Figure 16)

INSTITUTIONAL FINANCES Between 2005-06 and 2015-16, educational expenditures per FTE student at public doctoral universities increased by 17% in inflation-adjusted dollars. The increase over the decade was 18% at public master's universities, 12% at public bachelor's colleges, and 11% in the public two-year sector. (Figure 18)

Between 2005-06 and 2015-16, average educational expenditures

per FTE student rose by 17% in inflation-adjusted dollars at private nonprofit doctoral universities, 11% at private nonprofit master's institutions, and 9% at bachelor's institutions. (Figure 18)

In 2015-16, 14% of educational costs at private nonprofit master's

institutions was a subsidy to students rather than being covered by net tuition revenue. The subsidy share was 46% at doctoral universities and 39% at bachelor's colleges in the sector. (Figure 18)

The average subsidy per FTE student at public two-year colleges

declined by $940 (15%) in 2015 dollars between 2005-06 and 2010-11; it increased by $1,190 (22%) between 2010-11 and 2015-16, as enrollment in the sector declined. (Figure 18)

Between 2005-06 and 2015-16, inflation-adjusted increases in

net tuition revenue per student at public four-year institutions ranged from 20% at public bachelor's colleges to 42% at public doctoral universities. Because of declines in government support, total revenue from tuition and government sources increased by 2% at both bachelor's and doctoral institutions and by 6% at public master's universities. (Figure 17)

Between 2001-02 and 2016-17, average faculty salaries increased

by less than 1% (after adjusting for inflation) at public doctoral universities, by 5% at private nonprofit bachelor's colleges, and by 29% at for-profit institutions. Average faculty salaries did not keep up with inflation in other sectors. (Figure 24A)

ENROLLMENT PATTERNS Public two-year colleges enrolled about 1 million fewer students in fall 2016 than in fall 2010 (a decline of 12%), and for-profit institutions enrolled about 840,000 fewer students (a decline of 42%). But both sectors enrolled more students in 2016 than they did in 2005. The for-profit sector enrolled 1.2 million students in fall 2016, compared with 450,000 in fall 2000. (Figure 21)

Total FTE enrollment in public colleges and universities in the

United States increased by 11% between 2006 and 2016--from 9.4 million to 10.4 million. Changes across states ranged from declines of 10% in Illinois and 5% in Alaska to increases of 24% in Oregon and 25% in Texas. (Figure 22A)

Overall, two-year colleges accounted for 43% of the public FTE

undergraduate enrollment in 2016. In seven states, this share was 50% or more; in another seven states, it was less than 25%. (Figure 22B)

The percentage of first-time public four-year college students

who were residents of the states in which they were enrolled declined from 83% in fall 2006 to 78% in fall 2016. (Figure 23)

COLLEGE AFFORDABILITY Average published tuition and fees for in-state students attending public four-year colleges rose by $6,770 (in 2017 dollars) between 1987-88 and 2017-18--57% of the increase in income ($11,840) of the middle 20% of families and 9% of the increase in income ($77,650) of the 20% of families in the highest income bracket. (Page 29)

In 2017, the average income for the highest 20% of families

was 3.2 times as high as that for the middle 20% ($245,040 vs. $75,840 in 2017 dollars). It was just 2.6 times as high in 1987 ($167,390 vs. $64,000). (Figure 20A)

In 2017, the $119,120 median income for families headed by a

four-year college graduate was more than twice the median for families headed by a high school graduate. (Figure 20B)

Taking longer to earn a degree increases the price of college.

Students who completed bachelor's degrees in 2014-15 were enrolled for an average of 5.1 full-time academic years. Those who completed associate degrees were enrolled for an average of 3.3 years. (Figures 13A, 13B)

Tuition and fees constitute 40% of the total budget for in-state

students living on campus at public four-year institutions and 20% of the budget for public two-year college students who pay for off-campus housing. (Figure 1)

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Contents

3 Highlights 7 Introduction 9 Published Charges by Sector

and by Carnegie Classification, 2018-19 10 Student Budgets, 2018-19 11 Variation in Tuition and Fees, 2018-19 12 Published Charges over Time

13 Published Charges over Time

Published Tuition and Fees by Region 14 Tuition and Fees by State: Public Two-Year

15 Tuition and Fees by State: Public Four-Year

16 Tuition and Fees by State: Flagship Universities

17 Average Net Price: Public Two-Year

18 Average Net Price: Public Four-Year

19 Average Net Price: Private Nonprofit Four-Year

20 Net Price by Income: Public Institutions

21 Net Price by Income: Private Institutions

Institutional Tuition Discount by Family Income: Public Institutions Institutional Tuition Discount by Family Income: Private Institutions 22 Time to Degree

TABLE 1

Average Published Undergraduate Charges by Sector and by Carnegie Classification, 2017-18 and 2018-19

FIGURE 1 FIGURE 2

Average Estimated Undergraduate Budgets, 2018-19 Distribution of Full-Time Four-Year Undergraduates by Tuition and Fees, 2018-19

FIGURE 3 TABLE 2

FIGURE 4A FIGURE 4B TABLE 3

TABLE 4

Tuition and Fees over Time Tuition and Fees and Room and Board over Time Average Rates of Growth of Published Charges by Decade Published Tuition and Fees Relative to 1988-89, by Sector Tuition and Fees and Room and Board over Time (Unweighted) Published Tuition and Fees by Region over Time

FIGURE 5

TABLE 5 FIGURE 6

FIGURE 7 TABLE 6 FIGURE 8 TABLE 7 FIGURE 9

2018-19 In-District Tuition and Fees at Public Two-Year Institutions by State and Five-Year Percentage Change Tuition and Fees by Sector and State over Time

2018-19 Tuition and Fees at Public Four-Year Institutions by State and Five-Year Percentage Change 2018-19 Tuition and Fees at Flagship Universities and Five-Year Percentage Change

Tuition and Fees at Flagship Universities over Time

Average Net Price over Time for Full-Time Students at Public Two-Year Institutions Average Net Price over Time for Full-Time Students, by Sector

Average Net Price over Time for Full-Time Students at Public Four-Year Institutions

FIGURE 10 FIGURE 11 FIGURE 12 FIGURE 2017_11 FIGURE 2016_12

Average Net Price over Time for Full-Time Students at Private Nonprofit Four-Year Institutions Distribution of Full-Time Undergraduate Students at Public Institutions by Net Tuition and Fees, 2015-16 Distribution of Full-Time Undergraduate Students at Private Institutions by Net Tuition and Fees, 2015-16 Average Net Price by Income Among Federal Student Aid Recipients, 2014-15

Published Tuition and Fees, Institutional Discount, and Net Tuition Revenue at Public Institutions by Dependency Status and Family Income, Selected Years

FIGURE 2016_13

Published Tuition and Fees, Institutional Discount, and Net Tuition Revenue at Private Institutions by Dependency Status and Family Income, Selected Years

FIGURE 13A FIGURE 13B

Total Number of Academic Years Enrolled by Sector and Number of Institutions Attended: 2014-15 Bachelor's Degree Recipients

Total Number of Academic Years Enrolled by Number of Institutions Attended: 2014-15 Associate Degree Recipients

Figures and tables that are only available online at trends.. Additional figures from the 2014 and 2015 reports are available online.

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Contents--Continued

23 Living Arrangements: Undergraduate Students

24 Institutional Revenues: State and Local Funding

25 Institutional Revenues: State and Local Funding

26 Institutional Revenues: Public Institutions

27 Institutional Revenues and Expenditures

28 Endowments 29 Family Income

30 Enrollment Patterns Over Time 31 Public Enrollment by State

32 Migration 33 Faculty and Staff

34 Notes and Sources

FIGURE 14A FIGURE 14B FIGURE 15A

FIGURE 15B FIGURE 16

Living Arrangements of Full-Time Undergraduates by Sector, 2015-16 Nontuition Expense Budgets by Sector and Living Arrangement, 2015-16 Annual Percentage Change in State and Local Funding and Public Tuition and Fees over Time Total and Per-Student State and Local Funding and Public Enrollment over Time State and Local Funding per Student and per $1,000 in Personal Income by State, 2016-17

FIGURE 17

Institutional Revenues per Student at Public Institutions over Time

FIGURE 18

Net Tuition Revenues, Subsidies, and Education Expenditures per Student over Time

FIGURE 19 FIGURE 20A FIGURE 20B FIGURE 21 FIGURE 22A FIGURE 22B FIGURE 23

FIGURE 24A FIGURE 24B FIGURE 2017_20A FIGURE 2017_20B FIGURE 2016_23A TABLE A1

Endowment Assets per Student, 2015-16 Changes in Family Income over Time Family Income by Selected Characteristics, 2017 Enrollment by Level of Enrollment and Attendance Status over Time Ten-Year Percentage Change in Total Public Enrollment by State Percentage of All Public Enrollment in Two-Year Colleges by State, 2016 Percentage of First-Time Students at Public Four-Year Institutions Who Were State Residents, Fall 2006 and Fall 2016 Average Faculty Salary by Sector over Time Percentage of Faculty Employed Full Time over Time Student/Staff Ratio in Postsecondary Institutions over Time

Distribution of Employees by Occupation, Fall 2015

Composition of Staff over Time

Consumer Price Index

Figures and tables that are only available online at trends.. Additional figures from the 2014 and 2015 reports are available online.

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Introduction

For the sixth year in a row, Trends in College Pricing reports average one-year tuition and fee increases below 4% in the public four-year and two-year sectors and at private nonprofit four-year colleges and universities, before adjusting for inflation.

Price changes over time are most meaningful when adjusted for inflation. Between 2008-09 and 2013-14, as higher education struggled along with the rest of the economy, published tuition and fees rose by 14% after adjusting for inflation at private nonprofit four-year institutions and by almost 30% in the public two-year and four-year sectors. Over the five years ending in 2018-19, the largest increase was 10% from $32,500 (in 2018 dollars) in 2013-14 to $35,830 in the private nonprofit sector. Between 2013-14 and 2018-19, average tuition and fees rose by 7%, from $9,590 to $10,230 at public four-year colleges and universities, and by 5%, from $3,500 to $3,660, at public two-year colleges.

As always, Trends in College Pricing 2018 also reports on changes in net prices, combining the information on published prices with data on financial aid from Trends in Student Aid 2018. During the recession, when published prices were rising rapidly, dramatic increases in financial aid--particularly federal Pell Grants and tax credits--led to declines in the average prices students actually paid. But after increasing by more than 60% between 2007-08 and 2010-11, total grant aid for undergraduate students has grown slowly, rising by only 6% between 2010-11 and 2017-18. As a result, net prices have been rising, putting additional financial stress on students and families, among whom incomes continue to rise slowly.

In addition to information on tuition and fees and family incomes, Trends in College Pricing 2018 provides detailed data about room and board and other nontuition expenses in student budgets, variation in prices and their rates of change across states and institution types, and the length of time students take to complete their degrees. Although the report does not include analysis of the causes of changes in tuition prices, it does include information that can provide insight into the forces underlying increases in the prices students pay for college. Relevant factors include changes in enrollments and state funding levels, the composition of institutional expenditures and revenues, and the distribution of endowment resources across institutions.

PUBLISHED PRICES FOR ONE YEAR OF FULL-TIME STUDY

The prices reported in Trends in College Pricing are for one year of full-time study. Many students enroll part time, and prorating these prices does not always give an accurate picture of the published prices that students face, much less of the net prices generated by the grant assistance and tax benefits they receive.

An accurate picture of the financial investment needed for a college education requires a focus on the total price of earning a degree, not just the price of one year of college. Among students who began their studies full time at a four-year institution for the first time in 2010,

41% had completed a bachelor's degree at their first institution after four years and 60% had completed a degree after six years (NCES, Digest of Education Statistics 2017, Table 326.10). Relying on data from the National Student Clearinghouse, Trends in College Pricing 2018 reports that students who completed bachelor's degrees in 2014-15 were enrolled for an average of 5.1 full-time academic years and those who completed associate degrees were enrolled for an average of 3.3 years. Whether pursuing two- or four-year degrees, students who attend multiple institutions before graduating take longer to complete their studies.

Taking more than two years to earn an associate degree or more than four years to earn a bachelor's degree has other financial implications beyond tuition and fee expenses. Forgone earnings from reduced participation in the labor force are the largest portion of the cost of college for most students. The more quickly students earn their degrees, the more time they have to earn college-level wages and reap the financial benefits of postsecondary education. Bachelor's degree recipients age 25 to 34 had median earnings 65% ($18,630) higher than those with high school diplomas in 2017 (U.S. Census Bureau, 2017 Income Data, Table PINC-03).

TUITION AND FEES VERSUS TOTAL CHARGES

In addition to tuition and fees, we report room and board charges for residential students, living costs for commuter students, and other components of student budgets. Whether students live on or off campus, they must pay for housing and food, buy books and supplies, and cover transportation and other basic living costs. Many of these expenses are not really additional costs associated with attending college, but are expenses people face whether or not they are in school. It is very difficult to succeed in college while working full time. However, the cost of students' time is difficult to measure, and we make no attempt to do so in this report. Because students tend to think of living expenses as part of the cost of going to college, and because they must come up with the funds to cover these outlays, it is useful to use these expenses as a proxy for forgone earnings. The cost of living poses a significant hurdle for many students. Even those who receive grant aid sufficient to cover tuition and fee charges may struggle to meet living expenses.

The estimates of average net prices included in Trends in College Pricing include both tuition and fees as well as tuition and fees and room and board combined. On average, grant aid and tax benefits cover all of the tuition and fees for public two-year college students. Still, the average full-time student in this sector has to cover almost $8,300 per year in nontuition expenses. That amount averages almost $15,000 for public four-year college undergraduates and about $27,300 for those enrolled in private nonprofit four-year colleges and universities.

There is considerable variation, not only in the published and net tuition and fee prices students face, but also in the nontuition components of student budgets. One-third of undergraduate students live on campus, 44% live in off-campus housing, and one quarter live with their parents. Moreover, there is considerable variation in nontuition

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budgets even among students with the same living arrangement in the same postsecondary sector.

DISTRIBUTIONAL ISSUES

Because of the variation in tuition and fees and other budget components, it is difficult to predict the financial circumstances of individual students based on the data in the Trends reports. However, as data from the 2016 National Postsecondary Student Aid Study included in this report confirm, students from low-income families pay, on average, much lower net prices than those from more affluent families. Despite the fact that some student aid at the federal, state, and institutional levels is based on criteria other than financial circumstances, most of the dollars are distributed at least in part to meet financial need and provide greater support to students with more limited resources.

The tables supporting all of the graphs in the Trends publications, PDF versions of the publications, PowerPoint files containing individual slides for all of the graphs, and other detailed data on student aid and college pricing are available at trends.. Please feel free to cite or reproduce the data in Trends for noncommercial purposes with proper attribution.

Focusing on the distribution of financial aid and the resulting net prices is critical for assessing barriers to college access and success. Rising college prices create large hurdles for some students, while others are able to finance their education without significant hardship.

INTERPRETING THE DATA

Measuring Tuition

A growing number of institutions charge different prices for different years of study and/or for different academic majors. In other words, many students on a campus may face published prices quite different from those reported by institutions in the College Board's Annual Survey of Colleges. Even more fundamental, the lines between sectors are increasingly blurry as more two-year colleges offer some four-year degrees. For these reasons, the average published prices for each sector that Trends in College Pricing 2018 reports are not precise measures.

Trends in College Pricing 2018 presents detailed pricing data for public two-year and four-year colleges and private nonprofit four-year colleges and universities. We report average tuition and fees in the for-profit sector from federal data.

Price Changes

While the information reported here provides a best approximation of trends in college charges over time, we caution readers about placing too much reliance on either precise dollar amounts or annual percentage changes. Each year we revise the average prices calculated the previous year to account for revised data we receive from institutions and for changes in enrollment patterns. Details relating to our methodology and data reliability can be found at the end of the report in Notes and Sources.

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