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    • Do I really need this student loan? The latest trend in tuition fees.
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    Do I really need this student loan? The latest trend in tuition fees.

    Kathleen William Posted on

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    Americans like to complain about the rising cost of college. But consider this: The average domestic student at a public university now pays just $2,480 per year in net tuition.

    Of course, tuition fees are just one item on the list of study costs. Accommodation and meals may cost more. But the overall cost of attending a public college falls rather than rises when adjusted for inflation.

    The average net price of tuition and fees for a domestic student at a four-year public college has fallen 40%, adjusted for inflation, over a decade, from $4,140 in 2014-2015 to an estimated $2,480 in 2024-25 new College Board report.

    “The idea that tuition is out of control is not accurate,” said Mark Becker, president of the Association of Public and Land-grant Universities. “And the College Board data shows that.”

    The figures represent the average net price of tuition and fees for a first-year student, after deducting grants, scholarships and other discounts and taking inflation into account.

    (The College Board takes financial aid and inflation into account to show real price changes over time. Ignoring both inflation and aid, tuition increases slightly, other reports have shown.)

    The overall cost of attending a public university is also falling, although not quite as quickly. The net cost of on-site attendance, including room, board and other expenses, fell from $23,050 in 2014 to $20,780 in 2024 after accounting for grants and inflation, the College Board found. In fact, room and board make up a large portion of a domestic student's annual expenses.

    Prices are falling across science

    Financial experts say prices are falling across the higher education sector as the industry grapples with declining enrollment and cost-conscious customers.

    However, falling tuition prices are not the trend that is making the most headlines. Applicants go wild when someone creates a new list of the most expensive colleges: those that charge more than $70,000 in tuition and fees per year or more than $400,000 in total costs over four years.

    But these are “sticker prices,” and research suggests most students don’t pay them. Elite colleges often commit to meeting the financial needs of every student. Colleges regularly offer discounted rates to attract worthy students.

    Even at private, nonprofit colleges, average tuition and fees have fallen from $18,680 in 2014 to an estimated $16,510 in 2024, accounting for inflation and foreign aid.

    At public two-year colleges, net tuition has fallen into negative territory. The average student in 2024 will receive enough aid to fully cover tuition and fees, leaving $710 for other expenses.

    The numbers come from the College Board’s annual “Trends in College Pricing and Student Aid” report.

    The price of college is going down

    The declining cost of public college reflects two economic trends, both of which are good for consumers, the College Board reports.

    The price of college is going down. Published tuition and fees averaged $11,610 in 2024 for domestic students at public four-year colleges, down from a high of $12,830 in 2019 (after inflation).

    Flagship public universities in 45 states will charge less tuition and fees, adjusted for inflation, in 2024 than in 2019.

    And student aid is increasing. Per-student grants increased from $8,000 in 2014 to $9,130 ​​in 2024 for domestic students at public four-year colleges, in inflation-adjusted dollars.

    The total amount of aid awarded by colleges and their states has increased over the past decade, the college board said.

    About half of students at public universities graduated with no debt in 2022-23, compared with about two-fifths of students a decade earlier.

    “State governments have been reinvesting in higher education over the last decade,” said Nicholas Hillman, a professor and higher education finance expert at the University of Wisconsin-Madison, after a series of dramatic cuts during the Great Recession.

    Americans expect college tuition to rise

    Falling prices and falling debt contradict public opinion. About half of Americans expect tuition at public colleges to rise next year and just 9% expect they will fall, according to survey data from the Federal Reserve Bank of New York.

    Public opinion is not entirely wrong. Tuition fees are gradually rising across much of the country — but inflation is rising faster.

    Out-of-pocket tuition for American households has increased less than 9% since 2019, according to an analysis by the Chronicle of Higher Education. In contrast, overall prices have increased by more than 22%.

    Public skepticism has led many colleges to curb tuition increases, said Jason Delisle, a non-resident senior fellow at the Center on Education Data and Policy at the Urban Institute.

    “People are more price conscious. They question whether they should even go to college, Delisle said. “They’re wondering whether they should take on debt.”

    College enrollment has been declining for a decade, although there are signs of recovery. A shortage of students is forcing colleges to compete for business.

    More: Fewer high school students went to college this fall. It's unclear why.

    Universities “don’t have the say”

    Colleges are in “kind of a buyer’s market,” Delisle said. “You’re not in the driver’s seat.”

    College pricing is complex and admissions officers have difficulty explaining the math to prospective students and their families, higher education experts say.

    In fact, many universities charge students fees based on their ability to pay. In this equation, sticker price is just a starting point. Students pay different tuition rates, a concept that no dollar figure on a college website can fully convey.

    “There is no one price that everyone pays,” Hillman said, “just like on a plane.”

    Tuition fees also vary greatly from state to state. The cheapest state is Florida, the College Board reports, with average published tuition and fees of $6,360 for in-state students. Vermont is the most expensive with an average of $17,490.

    But almost every state charges less in 2024 than in 2019, after inflation. Public universities subsidize domestic students by charging foreign students a premium. On average, these students pay about $30,000 more.

    “It’s difficult to make a blanket statement about all 50 states,” Becker said. “But if you look across the country, the net effect is that investment in higher education has increased.”

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    Kathleen William
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