The Cost of College

 

Over the last two decades, the cost of college tuition has risen dramatically, resulting in undergraduate education becoming less affordable and accessible for both lower-class and middle-class Americans.ⁱ In fact, the cost of attending college has risen faster than the salaries and income levels of recent graduates. This discrepancy has led to more student debt and less college enrollment. Affordability in areas such as tuition, textbooks, housing, and meal plans all contribute to a student’s motivation to study at a specific program. Rising costs have made graduating from college less attainable for the average student. Quality education is part of the American Dream. Students should not have to struggle to fund higher education. Colleges, universities, and governments must seek ways to reduce tuition related costs and provide more opportunities (via scholarships, grants, etc.) to help alleviate the financial burden on students and ensure that younger generations are able to pursue the American Dream.

The Statistics

The cost of tuition at public colleges has risen by more than 300% since 1963.ⁱⁱ This is cheap compared to private university tuition costs which are almost four times the cost of in-state tuition at public universities.ⁱⁱⁱ According to research analyst Melanie Hanson with the Education Data Initiative, the average tuition for public, in-state, colleges for the 2022 – 2023 school year was $9,750, the average cost of out-of-state college tuition was $28,297, while the average cost to attend private universities was $38,421.^iv However, tuition costs only account for a portion of education related expenses. When accounting for other fees like room and board, textbooks, meal plans, et cetera, education costs can start to spiral out of control. For the 2025 – 2026 school year at the University of Southern California, the total cost of attendance for students living both on and off campus ranged from $86,581 – $99,139.^v The cost of attendance is especially high for Ivy league universities. According to Cole Claybourn, a contributor writing for U.S News, Brown University is one of the most expensive colleges in the United States.^vi Brown University’s undergraduate financial aid page states that the estimated cost of attendance for first-year full time students living both on and off campus for the 2025 – 2026 academic calendar is $95,984.^vii Though average tuition costs have risen dramatically at both public and private universities, the cost of attendance at private universities has risen at a much faster rate.

Why is the Cost of Education Rising?

There are several causes responsible for the drastic and overwhelming rise in the cost of college education. According to Elissa Nadworny of National Public Radio, one reason college “sticker prices” have gone up for public universities is because of a decrease in state funding.^viii As state funding has dwindled, colleges have been forced to raise tuition to make up for the funding gap.^ix

Another factor contributing to rising college costs is the existence of “administrative bloating and increased staffing.”^x According to the American College of Education (ACE), colleges have “increased non-instructional spending, including administrative and non-teaching staff.”^xi Although hiring more qualified staff members is necessary, “overspending in these areas” contributes to rising costs and a higher faculty to student ratio.^xii In The Bowdoin Review, journalist Lance Dinino observes how Yale has reached the “unfortunate distinction of having more administrators and managers than undergraduate students.”^xiii Unlike certain administrators and managers, professors and teaching staff contribute directly to students' academic performance. 50 years ago, teachers had much more influence over university management than they do today.^xiv In recent times, most university administrators “have no faculty experience and come directly from management degree programs or other non-teaching roles in higher education.”^xv The change in the administrative structure of colleges has contributed to the increasing costs of education. But the administrative bloat present at universities is largely unnecessary because most teaching faculty have all the necessary skills to oversee administrative duties.^xvi

According to the ACE, schools also often “overspend on unnecessary facility updates or amenities that don’t contribute to academic success.”^xvii Many schools have increasingly been emphasizing university athletic programs over education, investing in new and improved athletic facilities that don’t directly address the needs of students. The building of new athletic facilities instead of library or classroom space, and the raising of coaches’ salaries instead of improving student housing conditions, are factors that contribute to the increasing cost of college education.

Influence of College Athletes

The growing popularity in paying college athletes through NIL (Name, Image, Likeness) revenues is also inflating the cost of college attendance. Colleges and athletic departments have been forced to find new sources of revenue streams to pay athletes. These costs are beginning to be passed down to students through higher tuition fees. University of Wisconsin - Madison’s Undergraduate Journal of Economics says that “while students at many Division I schools already see over $1,000 of their tuition go toward subsidizing the athletic department,” pushing students to help financially support student-athlete salaries will increase tuition even more.^xviii According to Fresno State’s student-run newspaper, every semester, “students pay $132 in Instructionally Related Activities (IRA) fees…[and] nearly 70% goes directly to athletics.”^xix This means that students, whether they participate or not, directly fund college athletic programs, even though many colleges athletic programs generate millions of dollars without student contributions.^xx In 2023 – 2024, Fresno State’s athletic programs “reported nearly $42.7 million in revenue” with an additional $5.3 million from student tuition and reserves.^xxi This raises the question of why schools continue to use student monies to fund athletic programs when these programs are generating ample profits on their own.

Britannica states that paying college athletes also results in “many colleges and universities offering fewer scholarships” to students resulting in an unjust distribution “to top football and men’s basketball players because those two sports bring in the most revenue.”^xxii Not only do some colleges require students to directly fund athletic programs, but they also choose to put money towards specific money-making sports rather than education.

Impacts of High Costs

The growing cost of college attendance is starting to affect the financial stability of students, as well as their families, during college and after graduation. According to an article by Boise State University, “about 1 in every 3 college students in the U.S. lacks enough to eat as well as stable housing.”^xxiii In turn, this can lead to mental and physical health illnesses, further affecting academic performance.^xxiv Many students must focus on working to pay their college tuition rather than concentrating on their education, a reality that can severely inhibit a student’s ability to excel in their studies. Many students are, therefore, forced to choose between essentials like meals or textbooks, housing or school supplies.^xxv

According to Jamie Merisotis from the American Sociological Association, the presence of student loan debts makes “it harder for students to enroll and graduate.”^xxvi Although there has been a decrease in college enrollment, “there is [still] a high demand and interest for college, but many people can neither access nor afford it.”^xxvii Statistics prove that earning a bachelor’s degree contributes to higher incomes and more comfortable lifestyles.^xxviii Students who cannot pursue higher education because of financial reasons suffer from decreased social mobility and lower average earnings.

High tuition affects, both, the financial security of students as well as the financial stability of families who help finance their children’s education. According to Kim Reid, a Principal Research Analyst at Encoura, “students from the lowest income level (less than $30,000) pay about a third of their families' income toward the cost of an in-state public education.”^xxix Lower income families suffer from a “substantially higher burden” than families from higher income levels.^xxx The harsh reality is that college is not affordable for most families, and many families must make huge sacrifices to help their children obtain higher education.

Student Loan Debt

Student loan debt is one of the most significant factors that contributes to the financial instability of students. The current student loan debt in America is $1.7 trillion.^xxxi Michele Zampini writes in the Institute for College Access and Success that “managing student loan debt is making it more difficult for borrowers to keep up with their other bills, to find secure housing, or to save for retirement.”^xxxii Student loan borrowers also “report higher levels of anxiety, depression,” and other mental health disorders.^xxxiii The cost of attendance not only affects students during their college enrollment, but can also affect their financial standing long after they graduate into their adulthood.

To afford higher education, most students must take out loans, and for some, these loans significantly contribute to their monthly financial obligations. In recent years, students have borne a greater risk of “falling behind on student loan payments.”^xxxiv Those who fall behind on their student loan payments suffer from declining credit scores which can affect their ability to buy a home.^xxxv Student loan debt can often result in “delayed life milestones…borrowers delay getting married [or] starting a family.”^xxxvi It can also have drastic economic consequences, “limiting entrepreneurship and shifting retirement planning timelines.”^xxxvii

At present, many student borrowers are struggling to repay their loans and keep up with monthly payments. Politicians and creditors have begun worrying about a student debt “default cliff” where students “default on their payments in droves.”^xxxviii Currently, the Trump administration is planning to seize “the pay of people in default on their student loans” in early 2026.”^xxxix This will unfortunately make it even more difficult for student borrowers to pursue the American Dream or afford basic necessities.

Conclusion

The cost of attending college has risen dramatically over the last 20 years and shows no signs of abating. The increasing cost of higher education is the result of several factors including a lack of state funding, the need to fund more facilities and programs, and the presence of expensive athletic departments. Most students must unfortunately bear a huge financial burden during and after college to pay for their education. This burden negatively affects student academic performance and can also contribute significantly to student financial obligations after graduation. The rising cost of education is beginning to reduce social mobility and affect that ability of younger generations to pursue the American Dream. Colleges and governments must do more to ensure that students have access to quality and affordable education so that students are not unduly burdened by the cost of college attendance.