Returning Students: Universities Raising Attendance Costs

The cost of attendance at colleges and universities is a significant financial challenge for many students and their families. The average college sticker price increased in the 2024-2025 academic year, with private colleges charging about four times as much as in-state public schools. This price hike has been a growing trend, with tuition and fees at private colleges climbing by about 5.5% over the last year, and public schools not far behind with a 2.2% increase for in-state students and a 2.4% increase for out-of-state students.

With the rising costs of higher education, it is important to understand the factors that influence a university's decision to increase the cost of attendance for returning students. In this discussion, we will explore the reasons behind these increases and their potential impact on students' academic journeys.

Universities can raise the cost of attendance for returning students due to inflation

The cost of attendance for students returning to university can increase for a multitude of reasons, and one of the most common is inflation. Universities can and often do raise the cost of attendance for returning students due to inflation.

The cost of attendance at universities includes tuition and fees, housing and meals, transportation, books and supplies, and personal expenses. Inflation affects all these components of the cost of attendance. For instance, the average sticker price for tuition and fees at private ranked colleges in the US increased by about 5.5% over the last year, according to data for the 2024-2025 academic year. At ranked public schools, tuition and fees rose by 2.2% for in-state students and about 2.4% for out-of-state students. However, when adjusted for inflation, the year-over-year numbers look different. For private ranked colleges, taking inflation into account, tuition and fees increased by 2.5%. But for public ranked schools, there was a decline of about 0.6% for in-state students and about 0.5% for out-of-state students.

Universities often justify raising the cost of attendance due to inflation to maintain their operations and provide quality education and services to students. They argue that the increased costs allow them to invest in faculty salaries, research, campus maintenance, and other student resources. Additionally, universities may also use the additional funds to offer more financial aid and scholarships to students in need.

It's important to note that universities usually announce any changes to the cost of attendance well in advance, typically a year or a semester ahead. This allows students and their families to plan their finances and make necessary arrangements. However, sudden and unexpected increases in the cost of attendance due to inflation or other factors can pose significant challenges for students and their families, especially those with limited financial resources.

To mitigate the impact of rising costs, universities often provide financial aid packages, scholarships, grants, and work-study opportunities. Additionally, students can explore external scholarships, grants, and loans to help cover the increased costs. It is recommended that students carefully review the financial aid offerings of universities and plan their finances accordingly.

The cost of attendance includes tuition, fees, housing, food, transportation, and books

The cost of attendance (COA) is the total amount it will cost to attend college each year. It is not the same as the bill you receive from your college. The COA is used to establish a student's financial need and includes tuition and fees, on-campus room and board (or a housing and food allowance for off-campus students), and allowances for books, supplies, transportation, loan fees, and dependent care. It may also include other expenses, such as the cost of purchasing or renting a personal computer, disability-related expenses, or costs for eligible study-abroad programs.

Tuition and fees make up a significant portion of the COA. This includes the cost of attending required conferences and any graduation fees. The cost of tuition and fees varies depending on the college and the student's residency status, with out-of-state students typically paying higher tuition fees.

Room and board, or housing and food allowance, is another essential component of the COA. This covers the cost of on-campus housing and meal plans or provides a standard allowance for off-campus students to purchase food. The allowance is typically based on the average or median amount assessed to students for housing and food charges.

The COA also includes allowances for books, course materials, supplies, and equipment. This may include a reasonable allowance for purchasing or renting a personal computer if required for study.

Transportation costs are also considered in the COA. This includes transportation between school, residence, and work, as well as transportation required for a student's program of study, such as travel to conferences or interviews. However, it does not include the cost of purchasing a vehicle.

Other miscellaneous expenses that may be included in the COA are dependent care costs, costs of obtaining licenses or certifications, fees for federal student loans, and costs for study abroad programs.

It is important to note that the COA for graduate and professional programs is usually higher than for undergraduate programs. Additionally, for students attending less than half-time, the COA includes tuition and fees, allowances for books, supplies, transportation, and dependent care, and may also include room and board for a limited period.

Some universities have a need-blind admissions policy, meaning a student's financial situation will not affect their admissions decision

Need-Blind Admissions

Some universities have a need-blind admissions policy, meaning a student's financial situation and their ability to pay tuition costs will not affect their admissions decision. In other words, the university will only consider the non-financial parts of the application, such as essays, transcripts, and letters of recommendation. This approach aims to level the playing field and make the admissions process more merit-based, where students are evaluated solely on their achievements and not on their family's wealth.

While need-blind policies remove economic status as an admissions criterion, they do not guarantee that 100% of the applicant's financial need will be met if they are accepted. In other words, students may still have to pay a significant portion of their tuition out of pocket, even if they are admitted to a need-blind university.

There are three main types of need-blind financial aid policies:

• Full Need, No Loans: These schools promise to cover 100% of the student's demonstrated financial need without including student loans in the financial aid package.
• Full Need, With Loans: These schools also guarantee to cover 100% of the student's demonstrated financial need, but their financial aid package may include student loans.
• No Guaranteed Financial Aid: These schools have a need-blind admissions policy but do not guarantee any financial aid to cover the student's demonstrated need, leaving a gap that the student must fill through other means.

It's important to note that not all universities have transitioned to need-blind admissions policies. Some institutions do consider an applicant's ability to pay tuition as a factor in their admissions process, especially if the university relies heavily on tuition revenue to meet expenses. Additionally, even need-blind universities may not be able to provide sufficient financial aid to cover all admitted students' needs.

• Brown University
• Georgetown University
• Massachusetts Institute of Technology (MIT)
• Princeton University
• University of Notre Dame
• Washington and Lee University
• College of William and Mary
• Johns Hopkins University
• University of Chicago
• University of Pennsylvania
• Vanderbilt University
• Duke University

The average net price of attendance is the total cost minus grant and scholarship aid

The net price of attendance is a crucial factor for students and their families when deciding on a college, as it represents the actual amount they will need to pay for the student's education. The net price of attendance is calculated by subtracting any grant and scholarship aid from the total cost of attendance, which includes tuition fees, room and board, and other expenses such as books and supplies.

In the academic year 2021-22, the average net price of attendance for first-time, full-time undergraduate students at 4-year institutions was $15,200 at public institutions, $29,700 at private nonprofit institutions, and $24,400 at private for-profit institutions. These averages can vary depending on the student's living arrangements, with on-campus living generally resulting in a higher total cost of attendance.

It is worth noting that the net price of attendance can be further reduced by gift aid, which includes grants and scholarships that do not need to be repaid. When considering financial aid offers, it is important for students to have clear and accurate information about the cost of attendance, as well as the types of aid included in the offer, to make an informed decision about their college choice.

Some colleges and universities have a need-blind admissions policy, which means that an applicant's financial situation will not impact their admissions decision. Additionally, many institutions provide need-based grants and scholarships to support students who require financial assistance. These factors can help make higher education more accessible to a wider range of students.

Financial aid can help students cover the cost of attendance

The cost of earning a college degree can be a significant financial challenge for many families. Fortunately, financial aid can help students cover the cost of attendance.

The cost of attendance (COA) is an estimate of a student's educational expenses for their period of enrollment. It includes tuition and fees, books and supplies, room and board, transportation, and other miscellaneous expenses. The COA is used to calculate a student's financial need and determine their eligibility for need-based financial aid.

There are various types of financial aid available to help students cover the cost of attendance. These include scholarships, grants, work-study programs, and loans. Scholarships and grants are often referred to as gift aid because they do not need to be repaid. Scholarships are usually awarded based on academic merit or other criteria, while grants are typically need-based. Work-study programs provide students with part-time employment opportunities to help cover their educational expenses. Loans, on the other hand, need to be repaid with interest, but they can be an important source of funding for students who need additional assistance.

When it comes to covering the cost of attendance, it's important to consider both need-based and non-need-based aid. Need-based aid is awarded based on a student's financial need, which is calculated by subtracting the expected family contribution (EFC) from the COA. Non-need-based aid, on the other hand, is not based on financial need and includes programs such as the Teacher Education for College and Higher Education (TEACH) Grant, Direct Unsubsidized Loan, and Direct PLUS Loan.

Additionally, it's worth noting that the COA can vary depending on a student's enrollment status and living situation. For example, students living off-campus may have higher living expenses than those living in on-campus housing. It's important for students to carefully review their COA and financial aid package to ensure they have sufficient funding to cover their educational expenses.

By understanding the COA and exploring the different types of financial aid available, students can take control of their financial future and make informed decisions about their education.

Frequently asked questions