College Costs Continue to Climb

For the 2005-06 academic year, students at four-year private institutions are paying an average $29,026 in tuition, fees and room and board, according to the College Board’s Annual Trends in College Pricing 2005 report, released Tuesday. At four-year public institutions, the average cost to attend is $12,127. That’s an increase of 5.7% and 6.6%, respectively, over the 2004-05 academic year.

But as dismal as that sounds, increases in tuition at public institutions were actually less than the reported increase of 7.8% last year. Increases at private four-year colleges remained about the same.

Over the past five years, the average cost to attend has increased 17% at four-year private institutions, and 28% for four-year public institutions (figures adjusted for inflation).

Meanwhile, the amount of student aid distributed rose by only 3% -- the smallest increase in a decade. An estimated $129 billion in aid was distributed during the 2004-05 academic year (the most recent figures available), according to the College Board’s Annual Trends in Student Aid 2005 report, also released Tuesday. Full-time students at private four-year institutions received an average $9,600 of aid in the form of grants and tax benefits, while full-time students enrolled in public four-year institutions received an average $3,300.

Still, the benefits of a college education may be worth the increased financial burden. In its Education Pays 2005 report, also released Tuesday, the College Board details some of the benefits a higher education can provide for individuals and society. Consider: