College Tuition

• If you go to a community college, expect to pay over $2,000 in tuition and fees per year.
• If you go to a public, four-year university, expect to pay over $5,000 in tuition and fees per year.
• If you go to a private, four-year university, expect to pay over $20,000 in tuition and fees per year.

On average, college tuition tends to increase about 8% per year. This is about twice the general rate of inflation.

Of course, not all students will pay the full price for their education. If you complete a FAFSA application, you may receive grants based on your financial need. This is free money that does not need to be repaid.

In addition to federal financial aid, most colleges and universities offer scholarships and other incentives to students who can demonstrate academic promise, athletic ability, or other desirable characteristics. There are also a number of private community organizations providing financial assistance to college students.

Overall, more than 50% of students who attend college will receive some sort of financial aid.

Combating Rising College Tuition

One of reasons college tuition is rising so fast is lawmakers are devoting less resources to funding higher education. For example, Iowa’s community colleges received 24.39% of their total funding from tuition revenue in 1980. By 2004, declining state appropriations had increased this number to 46.31%. In many cases, schools simply must increase tuition to compensate for their decreased state funding.

At many colleges and universities, students have organized rallies or protests against tuition hikes. This type of activism helps increase public awareness of the importance of affordable higher education. However, if you’re looking for more immediate solutions to your college tuition problems, consider the following strategies:

• Start your coursework at a community college and transfer to a four-year university at a later date. You’ll save a bundle and your diploma won’t look any different than if you’d started out at the university.
• If you want to attend an out-of-state college, consider taking a year or two off to work full-time and establish residency. You’ll build up your savings while qualifying for cheaper tuition.
• Join the military. Serving your country will earn you the right to generous college tuition assistance.

How Much is Too Much?

The most obvious benefit of a college degree is increased earning power. According to the U.S. Census Bureau, a college graduate earns over $1 million more in his/her life than someone with just a high school diploma.

However, students are now borrowing more money than ever to earn their degrees. The Department of Education reports that students graduate with an average of $27,600 in student loan debt. This figure has tripled in the last decade, yet it doesn’t even include debt from credit cards, car payments, and other miscellaneous expenses. Not surprisingly, experts indicate that 39% of today’s graduates have debt levels that exceed what is recommended for their entry level salaries.

While no one is suggesting you forgo your college education, it’s important to pay attention to how much debt you are incurring in the process. Even if you’re not a top-notch student, apply for as many scholarships as possible to reduce the amount of money you need to borrow. You may also want to consider working part-time to earn extra money or looking at ways to reduce your living expenses.

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