The cost of attending college is climbing higher and higher each year, with some prestigious institutions now approaching a price tag of nearly $100,000 per year. Schools like New York University, Tufts, Brown, and Yale are among those where the cost of attendance is reaching the six-figure mark. Data from The Princeton Review’s “The Best 389 Colleges” list reveal that eight institutions have already set their costs at over $90,000 per year for the 2024-25 academic year.
The Impact on Families
With tuition adjustments averaging around 4% each year, it is projected that these institutions, along with others, could surpass the $100,000 threshold by 2026. While these numbers may seem daunting, it’s essential to note that many families do not end up paying the full sticker price. This is because approximately two-thirds of full-time students receive some form of financial aid, significantly reducing the overall cost.
The Importance of Financial Aid
According to Robert Franek, editor-in-chief of The Princeton Review, disregarding a school based solely on its sticker price is a mistake. The key is to look at the financial aid opportunities available. The average scholarship award at Washington University in St. Louis is over $65,000 per year, drastically reducing the out-of-pocket expenses for students. Additionally, private schools often have more financial aid resources available, making them more affordable options for many families.
On average, families spent around $28,026 on education costs during the 2022-23 academic year. Parental income and savings typically cover about half of these costs, scholarships and grants make up over a quarter, and student loans account for the rest. The U.S. Department of Education allocates approximately $120 billion annually to help students finance their higher education. In addition to federal aid, students may also be eligible for financial assistance from their state or college.
One of the critical steps in accessing financial aid is completing the Free Application for Federal Student Aid (FAFSA). This form is the gateway to all federal funding options, including loans, work-study programs, and grants. However, there have been challenges with the recent changes to the FAFSA, which have led to a decrease in the number of submissions. Despite these difficulties, completing the FAFSA remains crucial for students seeking financial support for their education.