 |
Paying for College
Basic Facts About College Prices and Student Aid
Tuition
-
For the 2002-03 academic year, average tuition charges
for full-time undergraduates, before student aid was deducted,
were:
|
Public Community College
(two-year, AA-granting)
|
$1,735
|
|
Public University
(four-year, BA-granting)*
|
$4,081
|
|
Private College or
University (four-year, BA-granting)
|
$18,273
|
-
Almost 70 percent of
full-time undergraduates who attend four-year colleges face tuition
charges, before student aid, of less than $8,000. About 38 percent
attend institutions that charge less than $4,000, before student aid.
Only 7 percent attend institutions with tuition (before aid) of $24,000
or more.
Total Annual Student
Budget
-
Both price and student aid
differ substantially based on the type of institution one attends. In
1999-2000, the most recent year for which data are available, the
average annual student budgets for full-time students, before any aid
was deducted, and after deducting grants and all aid, for various types
of institutions, were:
|
|
Before Aid
|
Less Grants
|
Less All Aid
|
|
Public Community College
(two-year, AA-granting)
|
$9,109
|
$7,810
|
$7,095
|
|
Public University
(four-year, BA-granting)*
|
$12,624
|
$10,595
|
$8,167
|
|
Private College or
University (four-year, BA-granting)
|
$23,700
|
$17,386
|
$13,059
|
|
* This figure is for
in-state students. Tuition charges for out-of-state residents typically
are higher.
|
|
|
|
-
Students who choose to
live on campus pay room and board fees, in addition to tuition, that
range from $5,300 to $6,700, on average. At four-year colleges, about 25
percent of undergraduates live on campus. The expenses of students who
live on their own off campus, or with their parents, will differ
depending on their living situation, personal circumstances, and the
local cost of living. Annual costs for books and supplies range from
$727 to $807, on average. There also may be special fees for laboratory
or computer use, for example. Colleges include all of these expenses
(tuition, room and board, transportation, books, fees, etc.) in a
student budget, which campus student aid officers use when making
student aid award determinations.
-
After student aid is deducted, the
total annual budget for two-thirds of full-time students is under
$10,000. For about one-third of undergraduates, the annual budget is
less than $5,000.
Student
Aid
-
Seven out of ten full-time students receive some form
of financial aid.
-
Most student aid is awarded on the basis of financial
need. Need is defined as the difference between the total cost of
attending a particular college and the amount a family is expected to
contribute to paying that cost. This 'expected family contribution' can
differ from institution to institution, but generally is based on a
federal formula that takes into account parental and student income and
assets.
- Because most aid is need-based, the price of college, less aid,
declines with income. For example, families with an adjusted gross
income of $70,000 or more paid an average of $3,728 in tuition, less
grants, at public universities in 1999-00, and those with an adjusted
gross income of under $2,632. Following the same pattern, at private
institutions, families with an adjusted gross income of $70,000 or more
paid an average of $12,224 in tuition, less grants, in 1999-00, and
those with an adjusted gross income of under $15,000 paid $5,237.
-
However, a substantial amount of aid is available that is not based
on need. All students, regardless of income, benefit from the low
interest rates on federal student loans (although only those with need
are exempted from interest charges while they are in school), and many
institutions, especially those in the private sector, offer grants to
students based on academic and other non-financial criteria. Several
federal tuition tax benefits are available to families with incomes
below $100,000, and a growing number of states are offering scholarships
to all students who meet certain academic criteria. Many national and
community-based organizations also offer scholarships that are based on
criteria other than financial need.
- Grants and loans are the most common types of student aid. Nearly 60
percent of all full-time undergraduates received grant aid in 1999-00
and the average amount they received was just under $5,000; about 45
percent took out a student loan in that year and the average amount
borrowed was $5,437.
- Student aid comes from many sources, but the majority of funds come
from the federal government. Federal student aid accounts for 69 percent
of all funds awarded to students, states supply 5.6 percent, and
colleges and universities and private sources contribute 19
percent.
Students' Contribution
-
Regardless of their parents' income, students are
expected to make a contribution to the cost of their education. Many
students make this contribution with earnings from jobs they hold during
the academic year. More than 80 percent of undergraduates work during
the academic year.
-
A large percent of all bachelor degree recipients
graduate with student loan debt. Among these students, the average
amount borrowed is about $15,375 for those who graduate from public
institutions and about $17,250 for those who graduate from private
colleges and universities. The average monthly payment to pay off these
amounts in 10 years is $180 and $200, respectively.
-
Another factor that has a substantial influence on
price is whether one attends full or part time. Because part-time
students face lower costs, they are less likely to receive aid. In
1999-00, 35 percent of part-time students received grants, and the
average amount these students received was $1,952.
Indirect Aid
-
States and institutions supply a great deal of
'indirect' aid to students by raising and supplying funds that allow
students to pay far less than the actual cost of their education.
Experts estimate that, after this indirect and direct student aid are
taken into account, students pay about one-third of actual educational
costs.
|
|
