Back

Tuition is rising, more students are in debt and at higher levels than ever before, and pressure is mounting to do something about it. This pressure comes from every direction and both political parties—from the White House, to state legislatures, to overwhelmed parents and students.

On the other hand, many colleges and college systems have become more innovative and resourceful. They’re providing higher education at lower cost, reducing expenditures on business operations, taking advantage of new technology, and redesigning instruction to make better use of expensive faculty time.

Why haven’t these efforts translated into savings for students? A few key facts about higher education costs and prices may provide some context.

What does it actually cost to provide a public college education?

Public four-year colleges in the United States spend an average of about $14,000 annually per student to provide undergraduate education; two-year colleges spend about $9,000. These amounts cover actual instruction, student support, and administration; extras such as food service, student health centers, and athletic programs are not included.

How much of the cost is covered by tuition?

According to the College Board’s Trends in College Pricing, average in-state undergraduate tuition in 2013-14 was $8,900 for four-year colleges and $3,300 for two-year colleges. This is far short of the actual cost of education, even when students receive no direct financial aid.

How do states differ in tuition and public support?

The average gap between what colleges pay and how much they charge in tuition is $5,900. Wyoming pays 86 percent of the costs and charges relatively low tuition. New Hampshire contributes only 16 percent from taxpayer funds, leaving a greater burden on students.

How do institutional subsidies differ from state financial aid?

Taxpayer subsidies keep tuition low for state residents but are not usually considered “financial aid.” Instead, financial aid is more generally defined as state-supported grant programs. These average about $700 per student nationwide, just a fraction of the total public subsidy.

What are students’ total education expenses?

The average student price to attend college in 2014 was $22,300 to live on campus, in state, at a four-year public institution. For a two-year commuter school, the cost was $15,900.