Students at public, four-year universities are paying on average 17 percent more for their tuition and fees than students did in 2010.
That’s an extra $1,314 a year for similar professors, classes and textbooks than students paid five years ago. If the cost of tuition kept pace with the cumulative rate of inflation during that period, the average annual expense of a four-year university would be $8,495 instead of $9,139.
“I think that is a huge concern, and I think that’s why a lot of students don’t go [to college] or don’t get the opportunity to go to the college of their choice,” said Dara Johnson, a financial aid adviser at Ivy Tech Community College Kokomo Region.
Community college offers a more affordable way for students to enter higher education, although the average tuition cost of public, two-year colleges also has increased by 18 percent since 2010. The recent increase in the cost of tuition is actually modest compared to five-year periods when tuition rose by as much as 34 and 31 percent at four-year and two-year schools, respectively, according to the College Board.
As the cost of college continues to increase, albeit at a slower rate than in the past, there is growing concern that some students simply won’t be able to afford the expense. And that’s especially troubling in a job market that virtually requires some type of post-secondary education.
“An investment in higher education may be the smartest purchase Hoosiers ever make,” said Indiana Commissioner for Higher Education Teresa Lubbers, when the commission released a report in 2013 on the return on investment for a college degree. “College graduates employed in Indiana earn more than two dollars for every dollar spent on their degrees within the first four years of graduation — the beginning of a lifelong return on investment.”
Only one-third of Hoosier adults had completed some type of higher education beyond high school as of January 2013, according to the Indiana Commission for Higher Education. That ranks Indiana 40th in the nation in terms of educational attainment, prompting the Commission to set a goal of having 60 percent of the population complete post-secondary education by 2025.
A more educated workforce translates to a stronger workforce, better economy and stronger middle class, the CHE report states.
But the maze of educational institutions, financial aid options, scholarship applications and student loan decisions can be overwhelming for prospective college students and their families. Spending tens of thousands of dollars on a degree may be the biggest investment a family makes, and it’s important they have the best information possible when deciding which options suit them.
State and federal financial aid, scholarships, student loans, accelerated degree completion programs and the opportunity to begin earning college credits in high school are all ways to reduce the financial impact of a college degree – though none of those options can reverse the rising cost of college.
Indiana University Kokomo has seen a 10 percent increase in its tuition fees since 2010, which Todd Gambill, vice president for student affairs and enrollment management at Indiana University Kokomo, says is reasonable.
“Yes, [tuition] has gone up 10 percent in five years, but all things considered that’s reasonable in a five-year period,” Gambill said. “It’s the cost of inflation. Colleges and universities, over half their budgets go to people – whether it’s salaries or benefits, and insurance is getting more expensive.”
The net price of a year at IUK for beginning students – which subtracts the average amount of grants or scholarships awarded per student from the total cost of attendance including tuition, fees, books, supplies and the average cost of room and board – has increased by 18 percent from 2010-11 to 2012-13, the most recent data available from the National Center for Education Statistics’ College Navigator database. In 2012-13, it cost a new IUK student an average of $9,834 a year, compared to $8,337 in the 2010-11 school year.
By contrast, the net price of attending Ivy Tech Community College for one year dropped by 15 percent from 2010-11 to 2012-13, based on statewide averages; there’s some variation in cost by regional campus. In 2012-13, it cost a student $8,532 net price for one year at Ivy Tech, which is just $1,302 less than a year at IUK, compared to $10,052 for a year at Ivy Tech in 2010-11.
After high school
While the price tag of a college degree may be discouraging, Eastern High School guidance counselor Ron Wyatt says ultimately, students can’t afford not to continue their education beyond high school.
However, he’s quick to add that not every student needs to go to college.
“It’s not for everybody, but doing something after high school is for everybody,” Wyatt said, listing community college, skilled trades, technical training and military service as opportunities for students to set themselves up for success later in life. “I always tell people everybody has to do something.”
At Eastern, counselors introduce college options to seventh graders, and each year students receive more and more information on potential post-secondary paths. Sophomores take the PSAT, which gives them a projected SAT score, and Wyatt uses that chance to talk about college admissions requirements.
Wyatt provides 11th graders with a packet of information on setting up college visits, and 12th graders get a checklist for what they need to complete throughout their senior year to be ready for college.
The main question Wyatt hears from parents is, “How are we going to pay for this?”
“If you’re very, very rich or very, very poor or very, very talented, college is paid for,” Wyatt said. “It’s that middle 80 percent where you hope for a scholarship, you work and then you have to do the ‘B-word’ – borrow.”
Wyatt encourages parents to come to him with any questions about financial aid or college applications, especially parents who didn’t attend college and are navigating the process for the first time with their oldest child. It’s important to take advantage of every potential funding source, Wyatt said, adding students can always decline loans they have been approved for if they don’t end up needing them.
“You don’t want to go into September and not have that last $1,000 because you’ll have other things on your mind,” he said. “You can always turn it down, but you can’t snap your fingers and make it appear. It’s amazing how it does work out, but you have to be patient and have faith.”