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November 20, 2024

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2024 college tuition data shows tuition up by 2.7%-3.9%. Learn how this impacts your budget, education plans & financial aid strategies. 

The 2024 college tuition increase is making headlines as families across the U.S. prepare for higher education expenses in the 2024-25 academic year.

According to the latest data from the College Board, tuition, fees, housing, and food costs are climbing steadily for both public and private colleges, with increases ranging from 2.7% to nearly 4%.

Over the past two decades, these costs have outpaced inflation, creating significant financial challenges for students and their families. With federal student loan interest rates also at their highest levels in years, understanding these trends is crucial for planning ahead.

FAQs

Q1: Why are college tuition costs increasing in 2024?

A1: College tuition costs are rising due to inflationary pressures on operational expenses like faculty salaries, campus maintenance, and housing services. For the 2024-25 academic year, public in-state tuition increased by 2.7%, while private colleges saw a 3.9% hike.

Q2: How much will it cost to attend a public four-year college in 2024-25?

A2: For public four-year colleges, in-state students will face an average total cost of attendance of $29,910, while out-of-state students will see a total of $49,080.

Q3: What is the difference between sticker price and net price?

A3: The sticker price is the advertised total cost of attendance before any financial aid or scholarships are applied. The net price reflects what families actually pay after accounting for grants, scholarships, and other aid.

Q4: How does the FAFSA delay impact students applying for aid?

A4: The FAFSA delay until December 2024 could shorten timelines for students seeking financial aid for the 2025-26 school year. Families should prepare their financial documents early to avoid missing deadlines.


Annual College Cost Trends And The Impact Of Rising Expenses

Every year, the College Board releases new college cost data and trends in its annual report. 

The figures published are average costs for public in-state, public out-of-state, and private colleges based on a survey of approximately 4,000 colleges across the country.

Over the past 20 years, average costs for tuition, fees, housing, and food has increased 32% at public colleges and 27% at private colleges over and above increases in the Consumer Price Index, straining the budgets of many families and leading to widespread student debt.

Here are cost highlights for the 2024–25 year.

“Total cost of attendance” includes direct billed costs for tuition, fees, housing, and food, plus indirect costs for books, transportation, and personal expenses

Public Four-Year: In-State

Tuition and fees increased 2.7% to $11,610

Housing and food increased 4.2% to $13,310

Total cost of attendance: $29,910

Public Four-Year: Out-Of-State

Tuition and fees increased 3.2% to $30,780

Housing and food increased 4.2% to $13,310 (same as in-state)

Total cost of attendance: $49,080

Private Four-Year

Tuition and fees increased 3.9% to $43,350

Housing and food increased 4.1% to $15,250

Total cost of attendance: $62,990

College Tuition Sticker Price vs. Net Price

The College Board’s cost figures are based on published college sticker prices. But many families don't pay the full sticker price.

net price calculator, available on every college website, can help families see what they might pay beyond a college’s sticker price. It can be a very useful tool for students who are currently researching and/or applying to colleges.

A net price calculator provides an estimate of how much grant aid a student might be eligible for at a particular college based on the student's financial information and academic record, giving families an estimate of what their out-of-pocket cost, or net price , will be. 

The results aren't a guarantee of grant aid, but they are meant to give as accurate a picture as possible.

Federal Student Loans: Interest Rates And Legal Challenges To SAVE Plan

To finance college, many families take out student loans to supplement their savings and income. 

Federal student loan interest rates for the 2024–25 school year are the highest they’ve been in years: 

  • 6.53% for undergraduate Direct Loans (up from 5.50% the previous year)
  • 8.08% for graduate Direct Loans (up from 7.05%)
  • 9.08% for graduate and parent Direct PLUS Loans (up from 8.05%)

Loan Repayment Changes

Regarding loan repayment, federal student loan repayment resumed in October 2023 for millions of borrowers after almost three-and-a-half years of payment pauses due to the pandemic. 

The SAVE Plan

Around the same time, the Department of Education launched a generous new income-driven repayment plan called Saving on a Valuable Education, or SAVE.

The SAVE Plan included multiple new benefits for borrowers, including monthly payments capped at 5% of discretionary income for undergraduate loans and at 10% of discretionary income for graduate loans.

Legal Challenges Leave SAVE Plan Borrowers In Limbo

After the SAVE Plan was launched, it faced multiple legal challenges.

In June 2024, two separate federal courts in Kansas and Missouri temporarily blocked key parts of SAVE

In response, the Department of Education placed all borrowers enrolled in SAVE into administrative forbearance, which meant borrowers weren’t required to make any payments and interest didn’t accrue. 

Then in August 2024, the U.S. Court of Appeals for the 8th Circuit blocked SAVE in its entirety, saying the injunction would remain in place pending further order of the court or the U.S. Supreme Court. 

The result is that borrowers enrolled in SAVE will continue to be in limbo while the legal process plays out.

2025-26 FAFSA Delayed Until December, Again

Typically, the FAFSA (Free Application for Federal Student Aid) opens on October 1 for the upcoming school year. However, for the second year in a row, the FAFSA has been delayed.

The 2025–26 FAFSA will open in December 2024.

Last year, the Department of Education launched a new, shorter FAFSA that contained a number of changes, including:

  • A new Student Aid Index (SAI) that replaces the Expected Family Contribution (EFC) terminology
  • No reduced parent contribution for parents with multiple children in college at the same time
  • No requirement to report cash support and other money paid on a student's behalf on the FAFSA, for example a monetary gift from a relative or a distribution from a grandparent-owned 529 plan

A reminder that the 2025-26 FAFSA will rely on income information from your 2023 federal tax return (sometimes referred to as the “prior-prior year” or the “base year”). However, the FAFSA will use asset information as of the date you submit the form.

The college tuition increase for 2024-25 underscores ongoing challenges in making higher education affordable for all families. With rising costs across public and private institutions, and federal student loan interest rates at record highs, students must navigate a complex landscape of financial planning and aid options. Tools like net price calculators can help families estimate their true out-of-pocket expenses while exploring scholarships and grants remains critical to reducing debt burdens. As we move into another year of rising education costs, proactive planning will be key to ensuring that higher education remains accessible despite these financial hurdles.

Contact your tax and financial advisors to determine the best moves for your situation.

1. College Board, Trends in College Pricing and Student Aid 2024;U.S. Department of Education, 2024


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