Private College Tuition Increases 4.6 Percent for 2011-12; Institutional Student Aid Up 7 Percent
FOR IMMEDIATE RELEASE
June 23, 2011
WASHINGTON, June 23 – Published tuition and fees at private, nonprofit colleges and universities are increasing an average of 4.6 percent for the 2011-12 academic year, while institutional student aid is growing by an average of 7 percent, according to a survey of member institutions conducted by the National Association of Independent Colleges and Universities (NAICU).
Over the last three years, published tuition increases have held steady in the mid-four percent range. This compares to an average annual increase of 6 percent during the 10 years prior to the economic downturn.
This fall’s 7 percent increase in institutional student aid comes on top of 9 percent and 6.8 percent increases, respectively, in 2009-10 and 2010-11. (This is only the third year NAICU has collected student aid figures from its member institutions as part of the annual tuition survey.)
“In response to the economic downturn, private colleges have worked to slow down tuition increases, while increasing institutional student aid at a faster rate,” said NAICU President David L. Warren. “During a difficult time for students and families, private colleges have stretched their resources to keep out-of-pocket expenses for students as low as possible, enhance the educational value they provide, and remain competitive in the marketplace.”
Large investments in institutional student aid have helped to actually reduce inflation-adjusted net tuition (published tuition less all grant aid and federal higher education tax benefits) at private colleges in the past five years. According to the College Board, inflation-adjusted net tuition and fees at private colleges declined 11.2 percent, from $12,750 in 2005-06 to $11,320 in 2010-11.
“More than ever, private colleges are competing on value provided for the dollar,” said Warren. “Providing an excellent education, while keeping out-of-pocket costs for consumers as low as possible, is job one for our institutions.”
In 2010-11, published tuition and fees at private colleges and universities averaged $27,293, according to the College Board. (NAICU’s annual tuition survey collects percent increases, but not dollar amounts.) However, average net tuition and fees for full-time students dropped to $11,320, after grant aid from all sources and federal tax benefits.
“Because of generous student aid policies and high four-year graduation rates, private colleges are a great value for many consumers,” said Warren. “Students and families owe it to themselves to consider all their options. It pays to shop around.”
On average, graduating seniors at four-year private, nonprofit colleges with student loans left school with $27,650 in debt in 2008, according to the Project on Student Debt. This compares to average student loan debt of $20,200 for graduates of four-year public universities, and $33,050 for graduates of four-year for-profit institutions.
A spike in student financial need, along with cost drivers that typically increase faster than inflation – including employee health care, information technology, insurance premiums, and utilities – all contribute to rising tuition.
Significant investments in student support services, including mental health counseling, support for students with disabilities, and programs designed to boost retention and graduation rates for at-risk populations, have also pressed institutional budgets.
Proposed cuts to federal student aid would put additional pressure on college budgets, as institutions try to fill the resulting gap. The urban legend that federal student aid fuels tuition increases has been refuted by federal studies conducted during the George W. Bush and Bill Clinton administrations, and by the actions of private, nonprofit colleges.
NAICU’s annual survey collects percentage increases, but not dollar amounts. Nearly 430 (429) institutions responded to the 2011-12 survey.
NAICU serves as the unified national voice of independent higher education. With more than 1,000 member institutions and associations, NAICU reflects the diversity of private, nonprofit higher education in the United States. NAICU members enroll 90 percent of all students attending private institutions. They include traditional liberal arts colleges, major research universities, church- and faith-related institutions, historically black colleges, Hispanic-serving institutions, single-sex colleges, art institutions, two-year colleges, and schools of law, medicine, engineering, business, and other professions.
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CONTACT:
Tony Pals,
tony@naicu.eduoffice: (202) 739-0474 cell: (202) 288-9333
