Tag: Price

  • The Net Price of College Is Falling for Most Students

    The Net Price of College Is Falling for Most Students

    Title: College Prices Are Falling for Everyone (Almost)

    Source: Brookings Institution

    Author: Phillip Levine

    New research from the Brookings Institution reveals a surprising truth: inflation-adjusted college prices have fallen for most students over the past five years. Phillip Levine’s analysis examines what students actually pay—the net price after financial aid—rather than the sticker prices that dominate media coverage.

    Using data from net price calculators at 200 institutions and proprietary financial aid records from 14 highly endowed colleges, his findings challenge the common narrative:

    Widespread price decreases: Between 2019-20 and 2024-25, inflation-adjusted net prices declined across institution types. Public flagship universities saw reductions of 7.1-17.3 percent, depending on family income level, while other public institutions experienced decreases of 8.5-13.2 percent. Private colleges with very large endowments had substantial declines, ranging from 7.0-43.4 percent, and tuition-dependent private colleges saw net prices drop by 16.8-23.3 percent.

    Lower-income students benefit most: Families earning $40,000 annually, representing the 25th percentile of the income distribution, experienced the largest reductions, with net prices dropping by 13.2-40.9 percent depending on institution type.

    Wide price variation by income: At private institutions with very large endowments, students from families earning $40,000 pay approximately $4,400 annually, while those from families earning $240,000 pay $82,800 annually.

    At many institutions, families earning $40,000 are still expected to contribute $15,000-$20,000 annually. Only the most heavily endowed institutions typically offer aid packages that lower-income families can reasonably manage. This raises important policy implications: proposed increases to endowment taxes may undermine institutions’ ability to provide generous financial aid, potentially harming the very students who benefit most from their pricing models. Private colleges and universities rely heavily on endowments to fund scholarships, research, and education—often more than they rely on tuition revenue. Treating endowments like business profits could shift the financial burden onto students and weaken U.S. innovation.

    The complexity of college pricing creates uncertainty for families, policymakers, and media. Greater transparency about the true cost of attendance is essential. By focusing on actual prices rather than headline-grabbing sticker prices, we can help reshape the national conversation on college affordability and ensure that misconceptions don’t deter qualified students from pursuing higher education.

    To read the full Brookings research analysis, click here.

    —Alex Zhao

    If you have any questions or comments about this blog post, please contact us.

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  • Wellesley Surpasses $100K Sticker Price

    Wellesley Surpasses $100K Sticker Price

    Wellesley College in Massachusetts has become the first U.S. institution to top $100,000 per year.

    Jessica Rinaldi/The Boston Globe/Getty Images

    Wellesley College appears to be the first higher ed institution in the nation to hit the $100,000 annual sticker price.

    The cost to attend the all-women’s college this coming fall will be $100,541, as Boston Business Journal first reported. That includes direct costs of $92,440—which covers undergraduate tuition, housing, fees and meals—plus indirect costs, such as books, personal expenses, travel, transportation, and optional health insurance. Wellesley now appears to be the most expensive college in the country.

    Various other universities have approached the six-figure mark for undergraduate tuition and indirect costs in recent years but managed to remain below it. When Inside Higher Ed explored this issue last year, it appeared that Vanderbilt University might be the first to cross the threshold, with estimated costs for undergraduate students in certain programs, such as engineering, hitting almost $98,000. Others at or over the $90,000 line include the University of Chicago, the University of Southern California, Washington University in St. Louis and Tufts University, and a handful of other highly selective, private institutions.

    Wellesley spokesperson Stacey Schmeidel wrote in an email to Inside Higher Ed Tuesday that the college “meets 100% of the calculated need for all students” and is “committed to making a Wellesley education accessible to all.” Additionally, she noted that “loans are eliminated for students with total parent income less than $100,000 and calculated family contribution of less than $28,000. The average indebtedness of our 2023 graduates is $18,500, well below the national average.”

    She added that indirect costs vary by student and “the majority” do not pay sticker price.

    Schmeidel also wrote that more than 50 percent of students decline the optional health insurance, which, at $4,051, is the most expensive item on the list of indirect costs. Of those who do opt in, nearly half receive institutional grants to cover the entire cost, she noted.

    Despite the potential sticker shock, Wellesley’s website plugs an education that is “more affordable than you think.” Wellesley has a financial aid budget of more than $84 million, according to its website.

    That is also the case at many other well-endowed colleges where, regardless of the listed price, most students don’t pay the full amount. Tuition discounting has soared in recent years and remains well over 50 percent across the U.S. A recent study of 325 private nonprofit colleges conducted by the National Association of College and University Business Officers pegged the average tuition discount rate for first-time, full-time students at 56 percent, and 52 percent for all undergraduate students. Both numbers are all-time highs.

    While public concerns about higher education have often focused on college costs, debt and the return on investment, Wellesley and its high-priced peers are outliers in terms of cost. A recent College Board analysis found that in the 2024–25 academic year, the average sticker price was $43,350 for private nonprofit four-year institutions, $30,780 for out-of-state students attending public universities, and $11,610 for in-state students at public universities.

    Bryan Alexander, a senior scholar at Georgetown University who has been writing about college costs nearing the $100,000 mark since 2018, correctly predicted in 2023 that Wellesley would be one of the first institutions to reach six figures by the 2026–27 academic year.

    Asked what he thought about his prediction coming to pass, Alexander responded with multiple questions.

    “Will this pricing make the college more desirable, as a luxury good? Or will it drive away would-be students from sticker shock?” he wrote by email. “How many universities, scared of [the Trump administration], will make such a price hike to raise funds when grants are cut?”

    He also pondered what it might mean for public perception, writing, “Wellesley is a small liberal arts college, but some universities are also playing this pricing game. Will [small liberal arts colleges] become seen as too pricey, or will all of higher ed get tarred with this brush?”

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  • This town fought residents over political yard signs — now it’s paying the price

    This town fought residents over political yard signs — now it’s paying the price

    Imagine putting a political sign in your yard, only to have your town threaten to fine you $1,000 a day for not following arbitrary size and placement rules.

    That’s exactly what happened to four residents of Lodi, New Jersey. But with the help of FIRE Legal Network attorney Randall Peach and his colleagues at the law firm Woolson Anderson Peach, they fought back — suing Lodi for violating their First Amendment rights.

    Like many places, Lodi regulates yard signs on private property, but its rules blatantly violate the First Amendment by singling out “political” signs — regulating how tall, wide, and close to the property line such signs can be, as well as whether they are up during the “correct” time of year.

    Making matters worse, three violations could land you in jail. Meanwhile, your neighbor could have an even bigger sign, right next to the property line, and never take it down — so long as it’s not “political.”

    The First Amendment protects your right to speak, especially on your own property. 

    That is unconstitutional, end of story.  The Supreme Court made that crystal clear in Reed v. Town of Gilbert, ruling that when sign regulations are based on what the sign says, the government must prove it has a compelling interest and use the least restrictive means to advance it. Lodi’s rules fail that test.

    Local governments often try to justify such restrictions with vague claims about aesthetics or traffic safety — but courts have never considered those interests compelling. And even if they were, it would be nonsensical to claim those concerns are advanced by restricting only “political” signs.

    Worse yet, the residents claimed in their lawsuit that Lodi initially only cracked down on signs supporting certain candidates. It was not until the four residents documented over 50 violations that local officials started applying the (still unconstitutional) rule more consistently. But even then, officials only issued eight summonses — after the election — and they were aimed at campaigns rather than other residents.

    Because of the lawsuit, Lodi settled for $75,000 and agreed to stop enforcing the restrictions on “political” signs. Lodi is also revising the ordinance to remove its discrimination against “political” content. But as FIRE has warned various towns before, even content-neutral restrictions, such as capping the number of signs residents can display or when they can do so, can violate basic constitutional rights.

    Here’s the bottom line. The First Amendment protects your right to speak, especially on your own property. As such, the government can’t come in and silence you just because it doesn’t like what you’re saying. And it certainly can’t do so for totally arbitrary reasons.

    FIRE defends the individual rights of all Americans to free speech and free thought — no matter their views. FIRE’s proven approach to advocacy has vindicated the rights of thousands of Americans through targeted media campaigns, correspondence with officials, open records requests, litigation, and other advocacy tactics. If you think your rights have been violated, submit your case to FIRE today. 

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  • Average Net Price at America’s Public Colleges and Universities

    Average Net Price at America’s Public Colleges and Universities

    Good news: We have new IPEDS data on average net cost.  Bad news: Because IPEDS is IPEDS, it’s data from the 2021-22 Academic Year. 

    This is pretty straightforward: Each dot represents a public institution, colored by region, showing the average net price for first-year students entering in that year.  IPEDS breaks out average net price by income bands, so you can see what a family with income of $30,000 to $48,000 pays, for instance, by using the filters at right.

    You can also limit the institutions displayed by using the top three filters: Doctoral institutions in the Far West, or in Illinois, for instance.  If you want to see a specific institution highlighted, use that control.  Just type part of the name of the institution, like this example, and make your selection: 

    Average net price shows The Total Cost of Attendance (COA), which includes tuition, room, board, books, transportation, and personal expenses, minus all grant aid.  It does not include loans, but of course, loans can be used to cover part of the net price, along with other family resources.

    This display is a box and whisker chart, and if you’re not familiar with the format, here is a quick primer: 

    For the sticklers, the median shown is unweighted.

    As always, let me know what you see here that you find interesting or surprising.

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