Average Cost of College Tuition & Expenses

According to the National Center for Education Statistics, tuition costs at a four-year institution of higher education have increased from roughly $5,000 per year in 1980-81 to $17,250 a year in 2021-22. That is the average increase; at some schools, the new tuition costs have risen much higher than that. 

To say that college tuition is on the rise is an understatement. Though the usual suspects are contributing to the increase – record inflation, reductions in federal student aid, and even changes in the amount of money federal and state governments give to colleges and universities – that’s hard to swallow when you’re looking at a bottom line that you simply can’t afford. 

The good news is that knowledge is power, and being informed of the finances you should expect before you sign any sort of enrollment paperwork can help you make the best possible decisions for your financial future. Let’s take a look at the costs and expenses students should be aware of as they embark on their higher education adventure.

What is the Average Cost of College in the US?

How much you pay for college depends upon several factors, including the type of college you attend, its location, and the degree path you choose. The degree level also matters; for instance, a bachelor’s degree will cost less than a doctoral degree. 

In most cases, a community college will be more affordable than a four-year school, and private colleges will almost always cost more than public ones. 

A college or university in-state will often be easier on the wallet than going out-of-state for your education. The biggest reason for this boils down to taxes. 

Students from out-of-state haven’t paid taxes to that state, which means the school hasn’t received a portion of taxes from them. By charging more for out-of-state students, the school is making sure they get the rough equivalent of the tax benefit they would have received if that student’s family lived in the state.

However, there is one significant caveat to that rule: Some schools that offer online programs often charge the in-state rate for anyone in that program, regardless of their location. That’s why sometimes online programs are more affordable than in-person programs.

Tuition and Fees

Public two-year in-district: $3,860
Public four-year in-state: $10,940
Public four-year out-of-state: $28,240

Room and Board

Public two-year in-district: $9,610
Public four-year in-state: $12,310
Public four-year out-of-state: $12,310

Books, Supplies, Transportation etc.

Public two-year in-district: $5,760
Public four-year in-state: $4,690
Public four-year out-of-state: $4,690

Total Cost Per Year

Public two-year in-district: $19,230
Public four-year in-state: $27,940
Public four-year out-of-state: $45,240

The costs will differ depending upon the degree as well. Here’s what to expect from each degree level. Keep in mind that these are nationwide averages: 

From a public university: 

• Bachelor’s degree: $20,500
• Master’s degree: $20,460
• Doctoral degree: $24,740

From a private university: 

• Bachelor’s degree: $52,590
• Master’s degree: $48,830
• Doctoral degree: $63,500

Cost of Tuition

Your first glance at the tuition of a particular school might bring about sticker shock. It’s important to understand the numbers you’re looking at and what they really mean for you. 

Tuition is the rate a school has set for the privilege of attending that college or university to earn your chosen degree. Tuition often includes all fees (though some schools break these down separately), but does not include room and board, books, and other necessities. 

Most colleges will list their tuition very clearly on their website; others will make you dig to find it. If you have trouble finding the cost of tuition and fees, contact the school directly to ask for that information. They must provide it to you.

Cost of Attendance

The cost of attendance includes tuition, fees, room and board, supplies, and some miscellaneous expenses. It does not include transportation costs to and from school, daily living expenses (beyond what is included with room and board), student loan interest, personal items (even if they are used for school purposes), and the like. 

When you add up all the potential items in the cost of attendance, you will see a number that’s much higher than the tuition rate. According to the Education Data Initiative, the average cost of attendance for a student living on campus at a public, four-year institution in their state of residence is $27,146 per year, or $108,584 for the four years of study.

Average Cost of Private College

Private college tends to be more expensive than public universities, but you might find more financial aid at a private college – and if you choose a private college in state, you might actually pay a bit less than if you chose a public college that is out of state. 

The Education Data Initiative says that the average cost of attendance at a four-year private college is $58,628 per year, or $234,512. That’s more than $125,000 more than what you might pay at a public institution. 

Keep in mind, however, that financial aid can bring that number down substantially. The tuition and fees are an average of $38,421 per year, which accounts for about 65.5% of the college costs for a student living on campus. A hefty financial aid package can be a nice sigh of relief.

Factors that Impact College Costs

The rise in college expenses has been rather dramatic over the last decade or so. One major reason for higher college costs is less government funding. Since the Great Recession of 2008, many states have slashed funding to schools. The National Education Association reports that 32 states spent less on their in-state schools in 2020 than they were spending in 2008, resulting in an average decrease of $1,500 per student.

Marketing, student perks, higher pay for staff, and price inflation are a handful of reasons why you might experience some sticker shock.

Marketing

As schools try to stand out from the increasingly stiff competition, they must market themselves in new ways to draw the attention of potential students. That means that schools pour money into their marketing budgets to create social media and email campaigns, school fairs at high schools or community centers, and website revamps.

Student Perks

At the same time that funding to the schools has diminished, student support services have actually improved. Some of these improvements are true luxuries, such as renovating workout rooms and gyms, movie theaters on campus, and more. Others are enhanced career placement services and financial advisement. 

Though many of those improvements are fantastic for students, both during their tenure at the school and after graduation, all of those improvements come with a hefty price tag.

Intentional Price Inflation

The demand for college degrees is steady or going up, depending upon the field of study and the geographical location. The prestige of earning a degree doesn’t just lie in the fact that you’ve done it – it also lies in the fact that employers want to see someone with a degree on their roster of applications. The nicer the college, the more likely a graduate is to impress potential employers and wind up with competing job offers. 

As the demand for higher education goes up, schools know they can charge the same amount—or more—and not see a decrease in demand. This leads to the schools charging more simply ‘because they can.’

More Administrative Staff

As schools see more demand for their degrees, they need to add more teachers to help meet that demand. 

Rising inflation has affected the cost of education. Colleges are paying more for even the most basic items, such as utilities and maintenance, in addition to paying their staff and faculty more to cover the increased costs of living. 

In fact, according to the Bureau of Labor Statistics, college tuition and fees have grown at twice the rate of the Consumer Price Index, which measures the average Americans pay for necessities.

Other Costs to Consider

In addition to the costs of tuition and the costs of attendance, students must consider other potential costs as well. The most common costs include transportation to and from school, basic living expenses (beyond room and board), and extracurriculars that require payment in addition to the cost of tuition. 

Planning out a budget is essential for students to stay on top of their expenses. Creating a budget that shows the money coming in, including student loans, as well as daily, weekly, or monthly expenses, can help you keep tabs on what you owe and ensure you have enough money to cover those expenses.

Ways to Make College More Affordable

There are numerous ways to bring down the cost of college. Here are just a few: 

• Free Application for Federal Student Aid (FAFSA). Filling out a FAFSA application can help the government see your financial situation and how much you can receive in grants and other financial options, including student loans. 
• 529 Plan. These are savings plans specifically designed to pay for college. If you have one of these accounts, the money there can be used to cover any expenses related to higher education. 
• Start at community college. Many community colleges are much more affordable than four-year colleges, which is why many students start their college career at one of these two-year institutions. After a few years, you can transfer to a four-year university if you want to complete a bachelor’s degree. Some states even offer free tuition at community colleges if you are a resident of the state for at least six months before college enrollment. 
• Scholarships. The potential for scholarships abounds. You can find these through national, state, and local organizations, businesses, and even the colleges themselves. Look into what is available to you and apply for them all – you never know what you might receive. Remember, scholarships do not have to be paid back. 
• Federal loans. If you can’t cover the costs of education in other ways, taking out federal loans could be what helps you get through school. Keep in mind that federal loans often have the lowest interest rates and generous repayment terms, as opposed to the higher rates and more stringent requirements of bank loans. 
• Choose an affordable college. If you simply can’t make the budget for your first choice college work, you might have to take a deep breath and pivot. Have at least a few colleges in mind that can be your second, third, and even fourth choices. As long as the college is accredited, you can rest assured you are going to get a quality education.

Choose the Right College for Yourself

The cost of college matters – there’s no doubt about that. However, choosing a college that suits you best means being true to yourself and your career goals. If you want to attend a prestigious college, that’s what you should shoot for. But if you simply want to make a good living, graduating from a respectable, accredited college could be more than enough to reach that goal. 

Look at what matters most to you and choose your school accordingly. Need help finding the right college? Top Online College can ensure you explore all the options and make a truly informed decision that will make you happy in the long run.