College Tuition and Fees
The cost of tuition and fees at a 4-year public university has quadrupled since 1968 (even after accounting for inflation).
Average undergraduate tuition and fees (constant 2020-21 dollars)
Full-time students at 4-year colleges and universities
Sources: NCES Digest of Education Statistics Table 330.10. Notes: Dollar cost of tuition and fees has been adjusted for inflation based on the Consumer Price Index, adjusted to an academic-year basis.
College tuition costs have more than tripled over the last 50 years, even after adjusting for inflation. In 1968, the average cost of tuition and fees for a 4-year institution was $5,041 (in today’s dollars). By 2021, the cost was $16,618. Average tuition and fees tripled for 4-year private institutions (1968: $10,456; 2021: $32,825) and quadrupled for 4-year public institutions (1968: $2,368; 2021: $9,375).
Though higher education is touted as a means of upward mobility, as the cost of college tuition rises, many graduates find themselves burdened by student loan debt. The federal Pell Grant, a financial need-based award, was able to cover almost all tuition costs and fees when first introduced in 1972. As of 2017, it only covered 29% of total college costs.1 The Income-Driven Repayment (IDR) plan began in 1994 with the intent to lower borrowers’ payments over an extended period of time but, instead, studies find that borrowers’ student debt continues to mount because payments do not cover monthly interest.2,3 Roughly 44 million borrowers owe $1.5 trillion in student loan debt.4 The resumption of student loan payments in October 2023 is expected to pull $70 billion a year out of the economy and some experts worry it will push the nation’s economy into recession.5,6 In the wake of the Supreme Court’s decision ruling against the Biden administration’s original plan for one-time student loan debt relief, the administration announced another plan that will automatically provide $39 billion in debt relief for 804,000 IDR borrowers. Still, this will cover only a tiny fraction of all borrowers.7,8
“Pell Grants – a Key Tool for Expanding College Access and Economic Opportunity – Need Strengthening, Not Cuts”. Protopsaltis, Parrott. Center on Budget and Policy Priorities. July, 2017. https://www.cbpp.org/research/federal-budget/pell-grants-a-key-tool-for-expanding-college-access-and-economic#_ftn3
“Education Needs to Take Steps to Ensure Eligible Loans Receive Income-Driven Repayment Forgiveness”. U.S. Government Accountability Office. March, 2022. https://www.gao.gov/assets/720/719612.pdf
“A regressive student loan system results in costly racial disparities”. Seamster, Aja. Brookings. January, 2022. https://www.brookings.edu/blog/how-we-rise/2022/01/24/a-regressive-student-loan-system-results-in-costly-racial-disparities/
“Making the Case: Solving the Student Debt Crisis”. Shaw, Hansen. The Aspen Institute. March, 2020. https://www.aspeninstitute.org/publications/solving-the-student-debt-crisis/
“Resuming Student Loan Payments May Slow Economic Growth”. Moore. Forbes. June, 2023. https://www.forbes.com/sites/simonmoore/2023/06/29/resuming-student-loan-payments-may-slow-economic-growth/?sh=26641b872caf
“Warning: Student loan cliff ahead”. Peck. Axios. July, 2023. https://www.axios.com/2023/07/10/student-loan-payments
“Department of Education et al v. Brown et al”. The Supreme Court of the United States. June, 2023. https://www.supremecourt.gov/opinions/22pdf/22-535_i3kn.pdf
“Biden-Harris Administration to Provide 804,000 Borrowers with $39 Billion in Automatic Loan Forgiveness as a Result of Fixes to Income Driven Repayment Plans”. U.S. Department of Education. July, 2023. https://www.ed.gov/news/press-releases/biden-harris-administration-provide-804000-borrowers-39-billion-automatic-loan-forgiveness-result-fixes-income-driven-repayment-plans
