Just as the Obama administration unveils new measures it says will ease crushing student loan debt, the College Board is out with new figures showing the cost of college surged again this year, and student borrowing along with it.
Tuition and fees at public four-year colleges and universities jumped 8.3 percent nationwide for the 2011-2012 school year, the organization said. The numbers were skewed by California, which raised in-state tuition and fees by a whopping 21 percent this year. But even without California, costs rose seven percent, according to the College Board’s annual “Trends in College Pricing” report released on Wednesday.
“State budgets are still tight, and states are appropriating less money per student than they were a year ago—much less than they were after adjusting for inflation a decade ago,” said Sandy Baum, an independent policy analyst for the College Board.
Private, non-profit colleges raised prices as well according to the report, but not nearly as much as their budget-strapped public counterparts. Tuition and fees rose 4.5 percent, which is still more than twice the core rate of inflation.“Private institutions don’t rely on state budgets for funding,” Baum told CNBC.Page 1 of 3 | Next Page