What college will cost in 18 years

[Dave_Berry]

"The latest projections could give even the wealthiest parents pause. Experts and parents are looking for solutions."

What college will cost in 18 years - education costs ? MSN Money

[Vladenschlutte]

I doubt we'll see 5%+ increases every year for 18 years at hardly any universities. How many schools have had that level of increase consistently for the past 18 years?

[samiamy]

http://oir.uga.edu/reports/sugtuitcomp9106.pdf

well they sure have done it over the past 15 years so why would they stop now?

When you read these tables hold onto your cookies.

Undergraduate
• The average 15-year increase in tuition and fees for residents was 189%. The University
of Georgia’s increase was smaller than this average, at 131% (23rd of 29). UGA’s nonresident
increase of 217% (11th) was slightly higher than the SUG average of 200%.
• The largest 15-year increase occurred at the four institutions in Texas, with the University
of Texas posting a nearly 600% jump in resident tuition and fees and an almost 300%
increase in non-resident tuition and fees.
• The lowest increases for residents were at Mississippi, Mississippi State, and Virginia
Tech (approximately double), while tuition and fees for non-residents only increased 1.5
at times Louisiana State and Virginia Tech.
• Over the past five years, Clemson University had the highest increase for residents
(146%), whereas Louisiana State only raised tuition and fees by 30%.

[Vladenschlutte]

Hmmm... Okay, fair enough. I didn't realize it was that many.

For comparison, 5% annually for 15 years is 108% increase. 6% is 140%. 7% is 176%. UT's 583% increase for resident tuition is about 13.7% a year annual increase.

However, the value of a college degree (measured as the increase in employability it confers) and the market base (those aged 18-26) are decreasing. The market base will continue to decrease in size until about 2030 or so based on this projection: Age distribution Tables - Statistics United States This will force colleges to control costs.

[samiamy]

Well one would think that to be true, however, it didn't work in our school district when the school age population downtrended, (older demographic houses too costly for young families). My district is spending on average 9,000 more per pupil at elementary level than it did when my now 22 year old attended. She graduated elementary school with 215 kids in her class, my youngest just finished and her class had only 165, but it is now doubled in cost for less students.

[Dad_of_3]

As long as the supply/demand situation is such that colleges are turning students away, there's little incentive in cutting the escalating tuition costs. Making it worse is the ease with which financially uninformed youngsters can tap into credit. When the bubble bursts, there'll be a write off of these unpayable loans at the tax payers' expense.

[amtc]

samiamy - part of that increase in cost is Federally mandated but unfunded programs, colleges don't have those same mandates. And it's only going to get worse - especially if Paul Ryan has his way. But let's stick to college costs.

[zobroward]

amtc..your swipe at paul ryan is sad at best! nice scape goat you have to blame for the rapid rise in college tuition! thanks for injecting your political spin into a college board.

[romanigypsyeyes]

If trends at my public U continue, it'll be about $938/credit hour.

[QuantMech]

Any analysis of the rising costs of public universities ought to include at the same time the decrease in state support for higher education. In terms of the question "why would they stop now?" I think that tuition has reached a level that is barely affordable or actually unaffordable for a lot of people. This ought to create pressure at the state level to return the state support for public universities to the level that it had 10-15 years ago. If that happened, tuition increases would be much smaller.

State support has dropped to the point that the University of Michigan, although technically a "state" school, receives less than 10% of its budget in funds from the state of Michigan.

[gouf78]

It'll probably go down or remain fairly stable--most classes will be via internet. MIT and some other prestigious colleges are now offering online classes for free. You don't get college credit but a certificate of completion. However some Community colleges offer college credit for that certificate of completion. This is a trend that I think will become more widespread.

[rockymtnhigh]

Agree gouf78. But might I take this further? All will be online/internet or whatever it will be called with most students working jobs at the same time.

[hops_scout]

This ought to create pressure at the state level to return the state support for public universities to the level that it had 10-15 years ago. If that happened, tuition increases would be much smaller.

Good luck. In Missouri, the governor is currently touting how he has balanced the budget without increasing taxes for 4 years. What he isn't telling everybody is how much he has slashed higher education and made those schools raise tuition to make up the difference...

[LoremIpsum]

All will be online/internet or whatever it will be called with most students working jobs at the same time.

You mean a series of unpaid internships to gain work experience in such critical skills as fetching coffee?

[Miw140]

I'm sure college tution won't continue you to grow at its current rates. The college bubble will eventually collapse.