According to research done by the CollegeBoard, college tuition has risen by an average of 3% every year for the past 20 years (1). This may seem like insignificant amount, but these tuition hikes add up over time, especially since tuition typically rises about 6% above the rate of inflation (2). To put this in numerical context, the average cost of tuition for a public college rose by about $2,690 from 2008-2018 and private tuition increased by about $7,220 over the same ten year time span (3). 

The causes of rising tuition can be complicated and numerous but two perpetrators–both consequences of the 2008 recession–take the spotlight: federal and state budget cuts, and increased enrollment. Due to the recession, there were budget cuts across all 50 states: North Dakota and Alaska being the least affected, and states such as Florida and Nevada experiencing the most adverse effects (4). With cuts to both federal and state funding, higher education lost revenue. Since colleges were receiving less funding, they had no choice but to raise tuition to continue operating at the same performance level as well as to accommodate for increased enrollment. 

Increased enrollment is a typical consequence of a recession; with more unemployment, there is more job competition which drives more people to seek higher education. As a consequence of the great recession, more people are going to college now than ever before; “nearly 90 percent of millennials who graduate from high school attend college within eight years” (5). Therefore, since more students are enrolling in college, institutions can charge more and still enroll a profitable amount of students: simple laws of supply and demand. 

With drastic changes in college enrollment come drastic changes in college environments. According to research done by Drew Allen and Gregory C. Wolniak, at the average four-year institution, a $1,000 increase in tuition lowers the racial and ethnic diversity of full-time students on campus by an average of 2.6% in nonselective colleges, and 4.5% for first-time freshmen at those colleges (6). As we see college becoming increasingly expensive, we see it becomes increasingly exclusionary to lower and middle-income students. One major issue is that not even financial aid can cover cost discrepancies in the college tuition process; “Last year alone, more than 900,000 low-income students who applied for and were found eligible for state financial aid for college never received it…”(7). If states are running low on funds for higher education, the funds are also depleted for financial aid resources. According to research done by Christine Mulhern, Richard R. Spies, and D. Derek Wu, the exclusion caused by rising tuition “[leads] to lower success rates among all students and [widens] gaps between students from different socioeconomic backgrounds”(8).  

The same research done by Mulhern, Spies, and Wu outlines some possible solutions to mitigate the adverse effects of rising tuition costs. The obvious solution is more funding for education; more funding can allow for better and more effective resources that can help keep tuition rates more constant. However, this is not always an option due to the state of the economy or government decision making. The research also suggested that colleges themselves can be more budget-conscious, and invest money in more efficient resources that are durable and reusable. This way, institutions can cut costs and keep tuition in a reasonable range. Finally, they suggested that we invest in mainly need-based financial aid to mitigate the adverse effects of tuition on racial and ethnic diversity on campus. 

College tuition costs will continue to rise exponentially unless we implement solutions immediately. The effects of college enrollment exclusion will have major impacts on society at large in a not-so-distant future. To protect access to higher education for all is to protect the implementation of equity and the opportunity to pursue knowledge and truth. There are catastrophes we cannot avoid, and there are catastrophes we pretend in hindsight were unavoidable: which will we choose this time?

This post was written by Marie Codella

1. Research.Collegeboard.Org, 2020, https://research.collegeboard.org/pdf/trends-college-pricing-2019-full-report.pdf. Accessed 3 July 2020.
2. “Why Is College Tuition Rising So Much? And What Can You Do?”. Cornerstone University, 2020, https://www.cornerstone.edu/blogs/lifelong-learning-matters/post/why-is-college-tuition-rising-so-much-and-what-can-you-do. Accessed 3 July 2020.
3. Martin, Emmie. “Here’S How Much More Expensive It Is For You To Go To College Than It Was For Your Parents”. CNBC, 2017, https://www.cnbc.com/2017/11/29/how-much-college-tuition-has-increased-from-1988-to-2018.html. Accessed 3 July 2020.
4. Luminafoundation.Org, 2020, https://www.luminafoundation.org/files/resources/college-costs-prices-and-the-great-recession.pdf. Accessed 4 July 2020.
5. “More People Enroll In College Even With Rising Price Tag, Report Finds”. Insidehighered.Com, 2020, https://www.insidehighered.com/news/2016/09/22/more-people-enroll-college-even-rising-price-tag-report-finds. Accessed 4 July 2020.
6. Allen, Drew, and Gregory C. Wolniak. “Exploring The Effects Of Tuition Increases On Racial/Ethnic Diversity At Public Colleges And Universities”. Research In Higher Education, vol 60, no. 1, 2018, pp. 18-43. Springer Science And Business Media LLC, doi:10.1007/s11162-018-9502-6. Accessed 4 July 2020.
7. “Eligible For Financial Aid, Almost One-Third Of Students Never Get It”. The Hechinger Report, 2018, https://hechingerreport.org/eligible-for-financial-aid-almost-one-third-of-students-never-get-it/. Accessed 4 July 2020.
8. Mulhern, Christine, Richard R. Spies, and D. Derek Wu. “The Effects of Rising Student Costs in Higher Education Evidence from Public Institutions in Virginia.” (2015).