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Students’ Out-of-Pocket Costs for Private College Tuition Rose Slower than Inflation During the 1990s


March 26, 2003


Average Price of Tuition, After Grants and Scholarships, Fell $100 in Inflation-Adjusted Dollars from 1992-93 to 1999-2000

WASHINGTON, DC—A leveling-off of tuition increases at private colleges and universities in the mid- and late 1990s, and a substantial increase in institutional grant aid, caused students’ out-of-pocket costs for tuition to grow more slowly than inflation over the past decade.  From 1992-93 to 1999-2000, private college “net tuition” (the student’s out-of-pocket cost once grant aid is subtracted from an institution’s list price) increased 17.3 percent, while the Consumer Price Index grew 18.7 percent. With inflation taken into account, net tuition dropped $100 during the 1990s.

The net tuition figures were calculated by NAICU’s research staff using data gathered by the U.S. Department of Education for What Students Pay for College:Changes in Net Price Between 1992-93 and 1999-2000. The department’s report was released in November 2002.

“The fundamental lesson learned during the last economic recession 10 years ago was that private colleges and universities have to compete for students on the basis of value, not just quality,” said David L. Warren, president of the National Association of Independent Colleges and Universities. “Our institutions have taken this principle to heart.  They focus on giving students not only a world-class academic experience, but the best education value for their dollar.

“Private institutions have renewed their efforts to enhance operating efficiency and control costs. They have invested substantial institutional resources in student aid, while maintaining the academic quality and personal touch for which they’re known. As a result, our institutions have given millions of students from all backgrounds the opportunity to attend and afford the college that best fits their personality, values, schedule, and learning and career needs,” Warren said.

From 1991-92 to 2001-02, institutional aid at private colleges rose 197 percent, more than double the 86 percent increase in tuition list price. Despite the current recession, private colleges are still increasing grant aid at a significantly higher rate than tuition. For the current academic year, institutional aid for students at private colleges and universities rose 10 percent over the previous year, almost doubling the 5.8 percent increase in private college tuition. Early reports on tuition increases for 2003-04 show little change in the overall rate of increase.

An overview of net tuition trends and other counterintuitive facts about America’s private institutions is available in NAICU’s new publication, Twelve Facts That May Surprise You About America’s Private Colleges and Universities. The guidebook is available in PDF format on the NAICU Web site. Printed copies may be requested via the Web site, or by calling (202) 785-8866.


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