Published tuition and fees at private, nonprofit colleges and universities is increasing an average of 4.5 percent for the 2010-11 academic year, while private colleges are increasing institutional student aid by an average of 6.8 percent, according to the final results of a membership survey conducted by the National Association of Independent Colleges and Universities (NAICU).
When you add it all up, net tuition and fees at private nonprofit colleges and universities has been going down in recent years. Colleges offset modest increases in tuition with generous investment in institutional student aid to make college possible for all qualified students.
Here in Washington our figures are even a bit better than the national averages. Tuition at Independent Colleges of Washington institutions will rise by an average of about 4.3 percent this fall, while institutional student aid budgets will be up by more than 10 percent, to a total of more than $278 million.
This fall’s increase is on par with the 4.3 percent increase reported by NAICU for the 2009-10 academic year. The 2009-10 increase was the smallest since 1972-73, while this fall’s jump is the second lowest. During the 10 years prior to the recession, the average annual tuition increase at private, nonprofit colleges was 6 percent.
The 2010-11 increase in institutional student aid comes on top of a 9-percent increase in 2009-10. (This is the second year that NAICU has collected student aid figures from its member institutions as part of the annual tuition survey.)
“Our colleges are redoubling their efforts to keep out-of-pocket costs as low as possible for students and families, while maintaining the quality academics, personal touch, and high graduation rates that are the hallmarks of private, nonprofit higher education,” said NAICU President David L. Warren.
“The bottom line for consumers is that they should not rule out a private college just because of the price tag,” Warren said. “Generous student aid policies at private institutions reduce out-of-pocket costs significantly for most students.”
According to the College Board, average published tuition and fees at private colleges and universities in 2009-10 was $26,273. However, the College Board also reports that after grant aid from all sources and federal tax benefits, average net tuition and fees for full-time students drops to $11,870.
Because of large campus investments in grant and scholarship programs, and lower-than-usual tuition increases, out-of-pocket tuition expenses for students and families have grown at a slower rate than published tuition, or inflation, in recent years. According to the College Board, inflation-adjusted net tuition (tuition less all grant aid and federal higher education tax benefits) at private colleges actually fell by 8.6 percent from 2004-05 to 2009-10.
“The economic downturn has accelerated efforts by private colleges to think and act creatively to enhance their affordability and remain competitive in the marketplace,” Warren said.
“In addition to colleges that are boosting student aid and keeping their tuition increases to the smallest rates in decades, we’ve seen a number of institutions freeze tuition, launch three-year degree programs, and introduce other new measures this year,” said Warren.
Over the last two years, large endowment losses, a sustained drop in charitable giving, and a spike in student aid applications have stretched college budgets thin. Private colleges have used the savings generated from cuts in their administrative budgets to boost student aid and keep tuition increases at lower-than-usual levels.
NAICU’s annual survey collects percent increases, but not dollar amounts. Nearly 500 (497) institutions responded to the 2010-11 survey.
