College Costs are rising only at inflation rates

From an article in the New York Times:

“Given the economic strain on state budgets, the pressure on state governments to shift the cost of education to students and families may prove irresistible,” said Molly Corbett Broad, president of the American Council on Education, which represents 1,600 colleges and universities. “Private institutions, too, given the loss of endowment income and expected cutbacks in private giving, will likely be forced to increase tuition at the same time they struggle to increase institutional financial aid.”

For the current school year, the reports found, the average in-state tuition and fees at public four-year institutions increased by 6.4 percent — to $6,585 — not much more than the 5.6 percent rise in the Consumer Price Index. At two-year public colleges, the average tuition and fees this year are $2,402, a 4.7 percent rise over last year. And at private four-year colleges and universities, average tuition and fees are $25,143, 5.9 percent higher than last year.
Hmm, so 6.4% is not much!!!  Whew, I guess that $6,585 per year for a college degree is still a bargain, relatively.  Seems like a lot of money though - over $25,000 JUST for the degree.  One has to live then also, eh?  That's rent, food, utilities and internet/computer/cell phone/etc. NOT INCLUDED!!!
“Over time, what’s important is to adjust for inflation, to see if college prices are rising faster than average prices in the economy,” said Sandy Baum, an economics professor at Skidmore College and a senior policy analyst for the College Board. “This year’s tuition increases are pretty similar to other price increases, but then, we had an unusually high rate of inflation. And with the current economic crunch, we don’t know what will happen next year.”
I am with Sandy - inflation WAS very high last year - college inflation wasn't low but rather close to average!!!  Costs are not going to go down either, as we all know so well.

Already, state cuts to university budgets have led to announcements of tuition increases in more than a dozen states, including some that will take effect in the spring semester.

But as colleges costs are rising, student aid is, too. Last year, the reports said, graduate and undergraduate students received more than $143 billion in financial aid, including grants, federal loans, federal work-study assistance and federal tax credits. In addition, they borrowed $19 billion from state and private sources to pay for their education.
The problem with "student aid" is that we are mostly talking about borrowing.  Borrowing from the future is OK but often we tend to forget how hard paying back that money is.  Furthermore, many of our young college students don't know what it means to have to pay back a loan as they have never had to do so. 

WARNING - SOAP BOX TIME!!!:

    I CONTINUE TO ADVOCATE WHOLE HEARTEDLY FOR REQUIRED TEACHING OF PERSONAL FINANCE IN HIGH SCHOOL - MAYBE *I* NEED TO BECOME MORE VOCAL BUT WE JUST HAVE TO TEACH EVERYONE ABOUT THEIR FINANCES.

   AND WE NEED TO BEGIN NOW!!!

 

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