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Rate of Tuition Increase at Private Institutions Holds Steady for 1998-99

October 7, 1998

WASHINGTON, D.C. - Tuition and fees increased an average of 5 percent at four-year independent colleges and universities and 4 percent at two-year independent colleges for the 1998-99 academic year, according to the College Board’s annual tuition and student aid report.

As a result, the average price of tuition and fees at four-year independent colleges and universities (before student aid is taken into account) is $14,508 for 1998-99. The average price at two-year independent colleges is $7,333. Three times as many independent colleges and universities have tuition and fees less under $10,000 as have tuition and fees greater than $20,000.

Aid provided by institutions, federal and state governments, and private sources helps to lower the actual out-of-pocket costs for most students and families. Eight out of 10 full-time undergraduates at private colleges and universities receive some type of aid. The average amount of aid these students receive from all sources is $10,800. More than $60 billion a year in aid is available to postsecondary students.

For students who live in residence halls and participate in campus meal plans, the average room and board charge is $5,765 at four-year independent institutions, and $4,666 at two-year independent colleges, an increase of 3 percent and 5 percent respectively.

"For eleven consecutive years the rate of tuition increase at private colleges and universities has declined from the double-digit highs of the late ‘80s, or held steady at less than half that rate," said David L. Warren, president of the National Association of Independent Colleges and Universities (NAICU). "Private institutions have made clear progress in streamlining their budgets over the past decade. And families should be assured that private colleges and universities will continue to work diligently to hold their costs down while still providing an academic experience that is the envy of the world.

"Every private college and university president I know understands the apprehension that families feel when they start planning for college," Warren said. "And each one of them has the same goal: to ensure that a private college or university education remains within the reach of every American, and continues to be one of the most rewarding investments families could ever make in their children’s well-being."

Refocused strategic planning over the past decade has led institutions to better control expenses, restructure administration, and enhance affordability. At the same time, campuses have continued to bolster their own student aid programs, helping to substantially ease the effect of price increases on student and family pocketbooks. When adjusted for inflation, the average change in net tuition (the price of tuition minus grant and scholarship aid) at private colleges and universities was $65 a year between 1993 and 1996. (The latest years for which data is available from the U.S. Department of Education.)

"Despite our progress to date, independent institutions must remain focused on a very delicate balancing act—providing each student with a top-notch academic experience while enhancing operational efficiency and maintaining affordability," Warren said. "At the same time, policymakers in Washington must recommit themselves to the programs that have helped make college a dream come true for millions of Americans.

"Tuition is just one part of the financing structure. Federal student aid—in partnership with philanthropic funds, institutional grants, and family contributions—continues to make higher education accessible and affordable," Warren said. "We urge policymakers to fund Pell Grants at the increased level authorized by the 1998 Higher Education Act, to maintain and build funding for the campus-based student aid programs, and to help institutions reduce their administrative costs by streamlining the thousands of federal regulations that they face."

Contact

• Tony Pals
  (202) 785-8866
  tony@naicu.edu