College costs are actually going down

[HawkeyeNFO]

"Colleges give out so much grant aid that the advertised price of college has evolved into a largely fictional marketing tool, akin to the rack rates posted on hotel doors."

https://thehill.com/business/400259...-price-college-costs-are-actually-going-down/

 

[MichaelB]

Interesting. Costs are declining and enrollment is also falling. That’s good.

The article references a study by the College Board, which can be found here. It has a wealth of data. Here are a couple of interesting charts.

 

[rodi]

I'm sure that is true, overall - but it isn't true in my sample of 2 students.

Older son is at a community college - rates have stayed about the same, books have gone up in price, not much financial aid available since it is a public community college. But on the plus side - it's less than $1k/semester for tuition/fees.

Younger son is at CalPoly SLO. Rates are going up. Only aid offered was student loans... no grants.

But with both boys at California public schools the costs aren't too bad.

The aid offered, according to MichaelB's link, is more loans than grants. Loans aren't reducing the cost... in fact they could increase the cost once interest kicks in.

 

[FlaGator]

Fits with my recent experience-anecdote of one.

Kid was accepted at a couple of Florida universities, in addition to a recognizable private school in Northeast (but not an Ivy, didn't apply there). The out of state school put enough money on the table to bring the cost down to equal to the posted price of a cash-paying FL resident.

Staying local, though. Those occasionally frustrating people at the convenience store musing about which lottery ticket to buy end up funding generous scholarships for better students in FL. One of the greatest unintentional wealth transfers in history.

 

[GenXguy]

Heard a while back they are increasing tuition at the state university near me.

 

[PlayinwithFIRE]

My sample size of 1, haven't seen any change. The kid ain't a star student ...so its outta my hard earned cash of the last 18 years. Loans offered were worth about 25% of the total yearly-not worth the extra paperwork imo.

 

[Koolau]

It makes sense that college tuition would be going down as it's supply and demand just like everything else is. Some people have finally had it with ridiculous tuition and have decided to set their sights lower.

When I got my j*b at megacorp, they loved the school I had picked - and knew it well. Lots of my co-w*rkers had gone to that university. Costs were much lower than other big-name schools but the education was top notch IMHO (and that of Megacorp.)

 

[luckydude]

"Colleges give out so much grant aid that the advertised price of college has evolved into a largely fictional marketing tool, akin to the rack rates posted on hotel doors."

https://thehill.com/business/400259...-price-college-costs-are-actually-going-down/

Thanks for sharing.

While the net price may be heading down, it is still prohibitively expensive for pretty much everyone except the rich. Unfortunately, too many people still believe that a college degree is the only way to financial success when in fact there are plenty of good paying jobs in "trades" that don't require a college degree and can be a good path to a comfortable middle-class lifestyle.

What the US needs is a vocational training system similar to what the Germans have:

https://www.germany.info/us-en/welcome/wirtschaft/03-Wirtschaft/-/1048296

Having this vocational system in place would give those kids who choose not to go to college another viable career path and also help ensure that there's a steady supply of trained skilled labor for the US work force.

 

[Midpack]

Thanks for sharing.

While the net price may be heading down, it is still prohibitively expensive for pretty much everyone except the rich. Unfortunately, too many people still believe that a college degree is the only way to financial success when in fact there are plenty of good paying jobs in "trades" that don't require a college degree and can be a good path to a comfortable middle-class lifestyle.

What the US needs is a vocational training system similar to what the Germans have:

https://www.germany.info/us-en/welcome/wirtschaft/03-Wirtschaft/-/1048296

Having this vocational system in place would give those kids who choose not to go to college another viable career path and also help ensure that there's a steady supply of trained skilled labor for the US work force.

That’s how Germany was doing things when I lived there in the late 60’s. I always wondered why it wouldn’t work here? I didn’t realize they’d had that system so long per the linked article, or that they’re still using that system. Obviously works well for them, Germany has a solid economy.

 

[yakers]

I understand that a lot of the top schools (CALTECH in particular) are so well endowed that they could give full scholarships to all students if they wanted. But they leave the tuition for those who have the money.

 

[mrfeh]

Any numbers from the last 3 years will be skewed from the pandemic.

 

[Phroig]

The article is a bit misleading. We are solidly middle class, but the cost calculators at pretty much all top private colleges had us at full-pay. $90K per year is a substantial sum for most middle class families, so their kids tend to not attend these colleges. All aid is need-based, so a student from a relatively low-income household typically gets a full ride; the wealthy can obviously afford full cost.
I suspect the researchers only analyzed students who enrolled, not those who chose not to attend because costs were too high.

 

[tryan]

The guv'mnt needs to establish an RMD (required minimum distribution) on the endowment funds colleges hoard. THEN tuition would really drop.

 

[Popeye]

The guv'mnt needs to establish an RMD (required minimum distribution) on the endowment funds colleges hoard. THEN tuition would really drop.

My previous recommendation was to fund student debt relief with a tax on endowments. I wonder how far 10% would go towards that?

 

[bloom2708]

Down like government spending down?

I spent $50k this year. I plan to spend $60k next year. I only spend $55k.

My spending was "down" $5k.

If tuition goes up $1,000 and you get a grant for $1,000, did you spend less?

I would expect college costs to continue to increase. Salaries and costs will continue to increase, therefore tuition, room and board, etc will all have to increase.

 

[Aerides]

Any numbers from the last 3 years will be skewed from the pandemic.

Perhaps, but my sample size of 3, says all 3 kids who were supposed to go to college starting in the Fall of 2020 still did exactly that, and are still there.

 

[Toocold]

My kids are about to go to college, first next year and another the following year.

At the T20, it's still a seller's market, so if you have too much assets/income, you're going to pay a pretty high price, but many give good scholarships for those under a certain income threshold. So it's full price at the top and full rides at the bottom. People in the middle will land in the middle and hopefully they can pay. Good thing we've saved up enough and will contribute a little more.

 

[Aiming_4_55]

My kids are approaching college age. With money in pocket, I struggle with supporting $30 - 50k per year college expense when a major or career isn't reasonable. Even new teachers by me, they start at $45k/year salary. So, $120k - $200k a degree to teach, sorry, just seem unbalanced. My kid is signed up for some AP and dual credit classes at about $100 each. Kid will have the 1st year completed when she graduates high school, so considering a State university, but kid also mentioned Community College as they offer a degree in the field of interest. Might finish Associate and Bachelors between $10 and 30k with a starting salary in the $70k range.

 

[ncbill]

I'm still surprised how few nowadays here in the USA explore the military options for paying for college.

My kids all had their tuition covered by ROTC scholarships, though one re-applied & moved on to a service academy (their first choice) after one year.

In many states simply joining the state National Guard covers tuition at that state's public schools.

Before receiving a last-minute ROTC scholarship one of mine was planning to move & join the National Guard in a different state to cover tuition at a public school where they (well, I) would otherwise have had to pay tuition at the expensive, out-of-state rate.

 

[Popeye]

I'm still surprised how few nowadays here in the USA explore the military options for paying for college.

My kids all had their tuition covered by ROTC scholarships, though one re-applied & moved on to a service academy (their first choice) after one year.

In many states simply joining the state National Guard covers tuition at that state's public schools.

Before receiving a last-minute ROTC scholarship one of mine was planning to move & join the National Guard in a different state to cover tuition at a public school where they (well, I) would otherwise have had to pay tuition at the expensive, out-of-state rate.

I’ve read where the military is missing recruitment goals big time. If so, it doesn’t surprise me this would spread to the National Guard / ROTC path.

 

[FlaGator]

My kids are approaching college age. With money in pocket, I struggle with supporting $30 - 50k per year college expense when a major or career isn't reasonable. Even new teachers by me, they start at $45k/year salary. So, $120k - $200k a degree to teach, sorry, just seem unbalanced. My kid is signed up for some AP and dual credit classes at about $100 each. Kid will have the 1st year completed when she graduates high school, so considering a State university, but kid also mentioned Community College as they offer a degree in the field of interest. Might finish Associate and Bachelors between $10 and 30k with a starting salary in the $70k range.

You have the right plan, and kudos to your kid for "working ahead". Both of mine loaded up on AP classes and did well on the tests. Oldest was considered a sophomore after for first uni semester. Hope the second one lands there.

For someone wanting to be a teacher (as the first one was), anything but a state school is a waste of money, IMO.

 

[PlayinwithFIRE]

I'm still surprised how few nowadays here in the USA explore the military options for paying for college.

My kids all had their tuition covered by ROTC scholarships, though one re-applied & moved on to a service academy (their first choice) after one year.

In many states simply joining the state National Guard covers tuition at that state's public schools.

Before receiving a last-minute ROTC scholarship one of mine was planning to move & join the National Guard in a different state to cover tuition at a public school where they (well, I) would otherwise have had to pay tuition at the expensive, out-of-state rate.

Well, we've been actively in war for what, the last 25 years? From a young persons point of view, why risk a potential outcome where you are in a foreign country risking your life when you can simply get student loans?

I don't undervalue this path, but i'm guessing how a teenager might look at it.

 

[HarveyS]

I am not doubting the data, but I have not seen costs decrease for my 3rd year student at a GA public school.

 

[Toocold]

I am not doubting the data, but I have not seen costs decrease for my 3rd year student at a GA public school.

I think prices for the T20/50 private schools and state schools still continue to go up, but for private schools that are less competitive, they are likely giving more scholarships/merit aid to attract more kids.

 

[madatrub]

Most colleges locked tuition raises as a result of the pandemic. I'm betting you'll see it head higher... As for having 2 children about to start college in the next 5 years, my message to them has been: Max AP courses in HS, push 2yr community/bridge college, then finish at the college of their choice. Its a lot easier to swallow when its 4 semesters vs. 8. And lets be honest, paying a lot of money for the first two years of college is a waste.