Trends in Higher Education Series. Trends in College Pricing 2016

Trends in Higher Education Series Trends in College Pricing 2016

See the Trends in Higher Education website at trends.collegeboard.org for figures and tables in this report and for more information and data. About the College Board The College Board is a mission driven not for profit organization that connects students to college success and opportunity. Founded in 1900, the College Board was created to expand access to higher education. Today, the membership association is made up of over 6,000 of the world s leading educational institutions and is dedicated to promoting excellence and equity in education. Each year, the College Board helps more than seven million students prepare for a successful transition to college through programs and services in college readiness and college success including the SAT and the Advanced Placement Program. The organization also serves the education community through research and advocacy on behalf of students, educators, and schools. For further information, visit www.collegeboard.org. Trends in Higher Education The Trends in Higher Education publications include the annual Trends in College Pricing and Trends in Student Aid reports and the Education Pays series, along with other research reports and topical analysis briefs. These reports are designed to provide a foundation of evidence to strengthen policy discussions and decisions. The tables supporting all of the graphs in this report, a PDF version of the report, and a PowerPoint file containing individual slides for all of the graphs are available on our website trends.collegeboard.org. Please feel free to cite or reproduce the data in this report for noncommercial purposes with proper attribution. For inquiries or requesting hard copies, please contact: trends@collegeboard.org. 2016 The College Board. College Board, Advanced Placement Program, SAT, and the acorn logo are registered trademarks of the College Board. All other products and services may be trademarks of their respective owners.

Highlights In 2016 17, published tuition and fee prices rose slightly less than the year before. The rapid price growth observed during the Great Recession has abated, as typically happens when the economy recovers, but the rate of increase in tuition and fees continues to exceed inlation. More notable, however, is the pattern of the net prices students actually pay. Large increases in grant aid and education tax credits cushioned the growth in published prices for a few years, and average net tuition and fee prices declined in the public and private nonproit sectors in 2008 09 and 2009 10. But net prices have risen since then, as inancial aid fails to keep pace with rising published prices. This increase is outpacing growth in incomes, fueling concerns about college affordability. Trends in College Pricing 2016 reports on the prices charged by colleges and universities in 2016 17, how prices have changed over time, and how they vary within and across types of institutions, states, and regions. It also includes estimates of the net prices students and families pay after taking inancial aid into consideration. Data on institutional revenues and expenditures and on changing enrollment patterns over time supplement the data on prices to provide a clearer picture of the circumstances of students and the institutions in which they study. PUBLISHED TUITION AND FEES AND ROOM AND BOARD Average published in state tuition and fees in the public four year sector increased by $230 (2.4% before adjusting for inlation), from $9,420 in 2015-16 to $9,650 in 2016-17. Average total tuition and fee and room and board charges are $20,090. Average published out of state tuition and fees at public fouryear institutions rose by $860 (3.6%), from $24,070 in 2015 16 to $24,930 in 2016 17. Average total charges are $35,370. Average published tuition and fees at private nonproit four year institutions rose by $1,150 (3.6%), from $32,330 in 2015 16 to $33,480 in 2016 17. Average total charges are $45,370. Average published in district tuition and fees at public two year colleges increased by $80 (2.3%), from $3,440 in 2015 16 to $3,520 in 2016 17. Estimated average tuition and fees for full time students in the for proit sector increased by $340 (2.2%), from $15,660 in 2015 16 to $16,000 in 2016 17. More than 70% of full time students receive grant aid to help them pay for college. GROWTH IN COLLEGE PRICES Between 2006-07 and 2016-17, published in-state tuition and fees at public four-year institutions increased at an average rate of 3.5% per year beyond inlation, compared to 3.9% between 1986-87 and 1996-97 and 4.2% between 1996-97 and 2006-07. The 3.5% per year rate of increase in tuition and fees in the public four year sector corresponds to an average annual increase of $280 in 2016 dollars, compared to $150 per year from 1986 87 to 1996 97 and $230 per year from 1996 97 to 2006 07. The inlation adjusted increase in published prices was lower in 2016 17 than in 2015 16 in all sectors. It was lower than the averages over the past 10 years and over the past 30 years in the public two year and four year sectors and similar to historical averages in the private nonproit sector. The 2.4% average annual rate of increase in published tuition and fees at private nonproit four year institutions over the most recent decade was a decline from 3.1% between 1986 87 and 1996 97 and 2.9% between 1996 97 and 2006 07. VARIATION IN TUITION AND FEES In 2016-17, while the median price for full-time students attending private nonproit four-year institutions is $35,020, 10% of full-time students attend institutions with prices below $12,000 and 7% attend institutions charging $51,000 or more. The average in state tuition and fee price for full time undergraduates at public master s universities is $8,340, compared to $10,510 at doctoral universities. The average published tuition and fee price for undergraduates at private nonproit master s universities is $28,890, compared to $40,980 at doctoral universities. DIFFERENCES ACROSS STATES In nine states, average published in-state tuition and fees at public four-year institutions fell or increased by less than 5% in inlation-adjusted dollars between 2011-12 and 2016-17. In nine states, average tuition and fees at these institutions increased by more than 20% over these years. Published 2016 17 in state tuition and fees at public four year institutions range from $5,060 in Wyoming to $15,650 in New Hampshire. In district tuition and fees at public two year colleges range from $1,430 in California to $7,740 in Vermont. WHAT STUDENTS ACTUALLY PAY In 2016-17, the estimated average net tuition and fee price paid by full-time in-state students at public four-year institutions is $3,770, $860 (in 2016 dollars) higher than the net price a decade earlier and $1,550 higher than the 2009-10 low of $2,220. In 2016 17, the average net tuition and fees paid by full time public two year college students is $920 less than in 2006 07 but $270 more than in 2011 12. 3

After declining from $14,900 (in 2016 dollars) in 2006 07 to $12,770 in 2011 12, the average net tuition and fees paid by full time students at private nonproit four year institutions rose to an estimated $14,190 in 2016 17. In 2011 12, on average, institutional grant aid covered 16% ($1,310) of the published tuition and fees for all full time in state students at public four year institutions. Institutional discounts ranged from 12% for independent students and 13% for the highest income quartile of dependent students to 20% for the lowest income students. In 2011 12, on average, institutional grant aid covered 39% ($11,160) of the published tuition and fees for all full time students at private nonproit four year institutions. Institutional discounts ranged from 24% for independent students and 33% for dependent students from the highest income quartile to 49% for those from the second income quartile. In 2011 12, the average published tuition and fee price facing students in the second income quartile who attended private nonproit four year institutions was 60% higher than the average price facing similar students in the for proit sector. However, the net price they paid to institutions was 18% lower than the price paid by similar students in the for proit sector. PUBLIC FUNDING In 2014-15, appropriations per FTE student were 8% lower in inlation-adjusted dollars than they were a decade earlier and 11% lower than they were 30 years earlier. The $77.6 billion in total state and local appropriations for higher education in 2014 15 represented a 3% increase in inlationadjusted dollars over a decade, but a decline of 9% from the peak of $85.2 billion (in 2014 dollars) in 2007 08. A 16% (inlation adjusted) decline in total appropriations and a 13% increase in enrollment contributed to the per student funding decline between 2007 08 and 2011 12. Between 2011 12 and 2014 15, an 8% increase in appropriations and a 4% decline in enrollment led to a 13% increase in per student funding. In 2014 15, appropriations per FTE public college student ranged from $2,900 in New Hampshire to $17,490 in Alaska. The portion of state and local resources going to support higher education, measured by funding per $1,000 in personal income, declined steadily from $7.37 in 1984 85 to $5.28 in 2014 15. INSTITUTIONAL FINANCES The portion of per-student educational expenditures at public four-year colleges and universities that is a subsidy to students, rather than being covered by tuition revenues, declined by $710 (in 2013 dollars) between 2003-04 and 2013-14, falling from 56% of the total to 44%. The average subsidy per full time equivalent (FTE) student at public two year colleges declined by $460 (in 2013 dollars) between 2003 04 and 2013 14. In 2013 14, the per student subsidy in this sector was 76% of that in the public four year sector. The average portion of per student educational expenditures at private nonproit master s universities that was a subsidy to students was 9% in 2013 14, compared to 46% at private doctoral universities and 34% at bachelor s colleges. Between 2003 04 and 2013 14, educational expenditures per FTE student at public four year institutions increased by 16% in inlation adjusted dollars, compared to 4% in the public two year sector, 23% at private nonproit doctoral universities, and 7% and 6%, respectively, in private master s and bachelor s institutions. Between 1993 and 2013, the percentage of employees who were faculty members rose from 36% to 38% in public institutions, from 33% to 39% in the private nonproit sector, and from 47% to 60% in for proit institutions. In 2013 14, the 10% of students enrolled in the 55 private nonproit colleges and universities with the highest endowments per student beneited from endowments averaging $776,000 per full time equivalent (FTE) student, but only 16 of these institutions had endowments this high. ENROLLMENT PATTERNS Although total postsecondary enrollment was 4% lower in 2014 than in 2010, it was 15% higher than in 2005 and 44% higher than in 1995. The share of undergraduate students enrolled in public two year colleges fell from 44% in 2010 to 42% in 2014. Public two year colleges accounted for 50% or more of undergraduate enrollment in the public sector in eight states in 2014, but for less than 25% in seven states. The percentage of irst time public four year college students who were residents of the states in which they were enrolled declined from 83% in fall 2004 to 79% in fall 2014. COLLEGE AFFORDABILITY Average published tuition and fees for in-state students attending public four-year colleges rose by $6,500 (in 2015 dollars) between 1985-86 and 2015-16 55% of the increase in income ($11,915) of the middle 20% of families and 9% of the increase in income ($76,041) of the highest income quintile. In 2015, average incomes for all groups except for the 20% of families with the lowest incomes equaled or exceeded the incomes of their 2005 counterparts, after adjusting for inlation. In 2015, the $111,270 median family income for families headed by a four year college graduate was more than twice the median for families headed by a high school graduate. Tuition and fees constitute 39% of the total budget for in state students living on campus at public four year colleges and universities and 21% of the budget for public two year college students who pay for off campus housing. 4

Contents 3 Highlights 7 Introduction 9 Published Charges by Sector, TABLE 1A Average Published Undergraduate Charges by Sector, 2016 17 2016-17 10 Published Charges by Carnegie TABLE 1B Average Published Undergraduate Charges by Carnegie Classiication, 2016 17 Classiication, 2016-17 11 Student Budgets, 2016-17 FIGURE 1 Average Estimated Undergraduate Budgets, 2016 17 12 Regional Variation in Charges FIGURE 2 Average Published Undergraduate Charges by Sector and Region, 2016 17 TABLE 4 Published Tuition and Fees by Region over Time 13 Variation in Tuition and Fees, FIGURE 3 Distribution of Full Time Four Year Undergraduates by Tuition and Fees, 2016 17 2016-17 14 Published Charges over Time FIGURE 4 Average Rates of Growth of Published Charges by Decade FIGURE 5 Published Tuition and Fees Relative to 1986 87, by Sector 15 Published Charges over Time TABLE 2A Tuition and Fees and Room and Board over Time, 1976 77 to 2016 17, Selected Years TABLE 2B Tuition and Fees and Room and Board over Time, 2006 07 to 2016 17 TABLE 2 TABLE 3 Tuition and Fees and Room and Board over Time Tuition and Fees and Room and Board over Time (Unweighted) 16 Tuition and Fees by State: FIGURE 6 2016 17 In District Tuition and Fees at Public Two Year Institutions by State and Public Two-Year Five Year Percentage Change TABLE 5 Tuition and Fees by Sector and State over Time 17 Tuition and Fees by State: FIGURE 7 2016 17 Tuition and Fees at Public Four Year Institutions by State and Five Year Public Four-Year Percentage Change 18 Tuition and Fees by State: FIGURE 8 2016 17 Tuition and Fees at Flagship Universities and Five Year Percentage Change Flagship Universities TABLE 6 Tuition and Fees at Flagship Universities over Time 19 Average Net Price: Public FIGURE 9 Average Net Price over Time for Full Time Students at Public Two Year Institutions Two-Year TABLE 7 Average Net Price over Time for Full Time Students, by Sector 20 Average Net Price: Public FIGURE 10 Average Net Price over Time for Full Time Students at Public Four Year Institutions Four-Year 21 Average Net Price: Private FIGURE 11 Average Net Price over Time for Full Time Students at Private Nonproit Four Year Nonproit Four-Year Institutions Net Price by Income FIGURE 2015_14 FIGURE 2015_15 FIGURE 2014_14A Distribution of Net Tuition and Fees at Public Institutions by Dependency Status and Family Income, 2011 12 Distribution of Net Tuition and Fees at Private Institutions by Dependency Status and Family Income, 2011 12 Net Price at Public Four Year Institutions by Residency, Dependency Status, and Income, 2011 12 FIGURE 2014_14B Net Price at Public Two Year Institutions by Dependency Status and Income, 2011 12 FIGURE 2014_15A Net Price at Private Nonproit Four Year Institutions by Published Tuition and Fees and Income, 2011 12 FIGURE 2014_15B Net Price at For Proit Institutions by Dependency Status and Income, 2011 12 FIGURE 2013_12 FIGURE 2013_13 Net Price by Income over Time: Public Sector Net Price by Income over Time: Private Sector Figures and tables that are only available online at trends.collegeboard.org. 5

Contents Continued 22 Institutional Tuition Discount by Family Income: Public Institutions 23 Institutional Tuition Discount by Family Income: Private Institutions FIGURE 12 FIGURE 13 Published Tuition and Fees, Institutional Discount, and Net Tuition Revenue at Public Institutions by Dependency Status and Family Income, Selected Years Published Tuition and Fees, Institutional Discount, and Net Tuition Revenue at Private Institutions by Dependency Status and Family Income, Selected Years 24 Institutional Revenues: State FIGURE 14A Annual Percentage Change in State and Local Funding and Public Tuition and Fees and Local Funding over Time FIGURE 14B Total and Per Student State and Local Funding and Public Enrollment over Time 25 Institutional Revenues: State FIGURE 15A State and Local Funding per $1,000 in Personal Income over Time and Local Funding FIGURE 15B State and Local Funding per Student and per $1,000 in Personal Income by State, 2014 15 26 Institutional Revenues: Public FIGURE 16 Institutional Revenues per Student at Public Institutions over Time Institutions 27 Institutional Revenues and FIGURE 17A Net Tuition Revenues, Subsidies, and Education Expenditures per Student at Public Expenditures Institutions over Time FIGURE 17B 28 Endowments FIGURE 18A Endowment Assets per Student, 2013 14 FIGURE 18B Net Tuition Revenues, Subsidies, and Education Expenditures per Student at Private Nonproit Institutions over Time Endowment Spending Rates over Time 29 Family Income FIGURE 19A Changes in Family Income over Time FIGURE 19B Family Income by Selected Characteristics, 2015 30 Enrollment Patterns over Time FIGURE 20 Enrollment by Level of Enrollment and Attendance Status over Time 31 Public Enrollment by State FIGURE 21A Ten Year Percentage Change in Total Public Enrollment by State FIGURE 21B Percentage of All Public Enrollment in Two Year Colleges by State, 2014 32 Migration FIGURE 22 Percentage of First Time Students at Public Four Year Institutions Who Were State Residents, Fall 2004 and Fall 2014 33 Faculty and Staff FIGURE 23A Composition of Staff over Time FIGURE 23B FIGURE 2015_30B Average Faculty Salary by Sector over Time Percentage of Faculty Employed Full Time over Time 34 Notes and Sources FIGURE 2014_30B TABLE A1 Percentage of Full Time Faculty with Tenure over Time Consumer Price Index Figures and tables that are only available online at trends.collegeboard.org. 6

Introduction Perceptions of the price of going to college depend largely on published or sticker prices. Despite the federally mandated creation of net price calculators, the ongoing simpliication of the inancial aid application process, and the large role of inancial assistance available to help students pay for college, increases in published prices continue to capture most headlines. Trends in College Pricing 2016, along with its companion publication, Trends in Student Aid 2016, provides detailed information about both published prices and net prices, and about college students living expenses in addition to tuition and fees. Trends in College Pricing also provides information on enrollment patterns, institutional revenues and expenditures, and family income over time in the United States. Events associated with the Great Recession increased the role of inancial aid in helping students and families pay for college. Increases in tuition and fees from 2008 09 to 2011 12 were unusually large relative to general inlation. But increases in aid particularly federal grants and tax credits actually led to declines in average net prices over these years. However, the story has shifted considerably since that time, with increases in aid covering about two thirds of the increase in tuition and fees between 2011 12 and 2016 17 for the average private nonproit college student and much less for those enrolled in the public sector. Students also have to come up with the resources to cover increases in living expenses. Despite some recovery in incomes over these years, income inequality has increased and average incomes have grown slowly or not at all across the income spectrum (Figure 19A). Trends in College Pricing 2016 includes data that can provide insight into the forces underlying increases in the prices students pay for college, including changes in state funding levels and in enrollments, the composition of institutional expenditures and revenues, the distribution of endowment resources across institutions, and tuition discounting patterns. The gap between published and net prices is large. The average full time student at a private nonproit four year college receives more than $19,000 a year in grant aid from all sources and federal tax credits and deductions. Aid averages more than $5,800 for public four year students and more than $4,000 for public two year students. While published prices paint an exaggerated picture of the inancial barriers students face in pursuing postsecondary education, these barriers are growing as net prices rise. PUBLISHED PRICES FOR ONE YEAR OF FULL-TIME STUDY The prices reported in Trends in College Pricing are for one year of full time study. Many students enroll part time, and prorating these prices does not always give an accurate picture of the published prices that students face, much less of the net prices generated by the grant assistance and tax beneits they receive. But even for full time students, one year prices at two year and four year institutions may not be adequate indicators of the cost to students pursuing postsecondary certiicates and degrees. Among students who began their studies full time at a four year institution in 2008, about 40% had completed a bachelor s degree at their irst institution after four years and about 60% had completed a degree after six years (NCES, Digest of Education Statistics 2015, Table 326.10). In other words, among students who earned bachelor s degrees within six years, one third took more than four years to do so. Not all of these students paid more than four years of full time tuition they may have taken time off or enrolled part time for at least a semester. But for many of those who took longer than four years to earn their degrees, tuition and fees (before accounting for grant aid) were likely to be considerably more than four times the one year price. Taking more than two years to earn an associate degree or more than four years to earn a bachelor s degree has inancial implications beyond tuition and fee expenses. Forgone earnings from reduced participation in the labor force constitute the largest portion of the cost of college for most students. The more quickly students earn their degrees, the more time they have to earn college level wages and reap the inancial beneits of postsecondary education. Bachelor s degree recipients between ages 25 and 34 had median earnings 69% ($18,876) higher than those with high school diplomas in 2015 (U.S. Census Bureau, 2015 Income Data, Table PINC 03). PAST AND FUTURE As Figure 4 illustrates, the rate of growth of published tuition and fees is not accelerating over time. In both the public and private nonproit four year sectors, inlation adjusted prices increased at a slower rate between 2006 07 and 2016 17 than in either of the previous two decades (Figure 4). In the public sector, both the dollar and percentage increases between 2011 12 and 2016 17 were smaller than over the previous ive years (Table 2A). But Figure 5 shows how these price increases have accumulated over time. After adjusting for inlation, the average published tuition and fee price in the public four year sector is 3.1 times its level 30 years ago. In the public two year and private nonproit four year sectors, the prices are about 2.4 and 2.3 times their 1986 87 levels, respectively. For public institutions, declining state revenues per student are a major factor behind rising prices. State funding for higher education is cyclical, but there is also a long term downward trend in this subsidy to postsecondary students (Figures 14A and 14B). In 2014 15, appropriations per full time equivalent (FTE) student were 8% lower in inlation adjusted dollars than they were a decade earlier and 11% lower than they were 30 years earlier. 7

PUBLISHED AND NET PRICES We estimate that in 2016 17, the average in state net tuition and fee price at public four year institutions is about $3,770, compared to a published price of $9,650. But between 2011 12 and 2016 17, increases in grant aid for full time students in this sector covered only about 19% of the $830 (in 2016 dollars) increase in published tuition and fees. Average aid increases covered almost two thirds of the $3,780 increase in published tuition and fees at private nonproit four year colleges and universities. For public two year college students, the $350 increase in tuition and fees over ive years was met by an increase of less than $100 in average grant aid. Averages across sectors conceal considerable variation among students. Federal grant aid goes almost exclusively to low and moderate income students and, as Figures 12 and 13 reveal, institutional discounts are generally larger for lower income students. The distribution of net prices is more critical for college access than the overall average since, as Figure 19 shows, there are sharp differences in inancial capacity among families. TUITION AND FEES VERSUS TOTAL CHARGES In addition to tuition and fees, we report room and board charges for residential students, living costs for commuter students, and other components of student budgets. Whether students live on campus or off campus, they must pay for housing and food, buy books and supplies, and cover transportation and other basic living costs. Many of these expenses are not really part of the cost of attending college, but are expenses people face whether or not they are in school. The largest real college cost many students face is forgone earnings. It is very dificult to succeed in college while working full time. However, the cost of students time is dificult to measure, and we make no attempt to do so in this report. Because students tend to think of living expenses as part of the cost of going to college, and because they must come up with the funds to cover these outlays, it is useful to use these expenses as a proxy for forgone earnings. The cost of living poses a signiicant hurdle for many students. Even those who receive grant aid suficient to cover tuition and fee charges may struggle to meet living expenses. It is not so much the prices charged by institutions, but the very real costs that students incur by devoting their time to school and forgoing the income needed to support themselves and their families while in school that create the burden for these students. COLLEGE AFFORDABILITY College affordability is about more than just college prices. It is about economic inequality, income levels for the majority of families and individuals, the prices of other goods and services, savings rates, and personal preferences and priorities. Affordability also depends on the inancial return to a college education, since accessible borrowing allows students to pay part of the cost of their education out of future earnings. A major question that begs for more attention is the appropriate division of responsibility for inancing postsecondary education between society as a whole, as represented by taxpayers, and the individual students who enroll. In addition to the varied circumstances facing students from different backgrounds and of different ages, there is considerable variation in prices across sectors, states, and regions, as well as among institutions within these categories. National average prices tell a very incomplete story. College students in the United States have a wide variety of educational institutions from which to choose, with many different price tags and with different levels of inancial aid. One of the issues many students face is how to make sense of all the options and complex pricing structures. INTERPRETING THE DATA Measuring Tuition A growing number of institutions charge different prices for different years of study and/or for different academic majors. In other words, many students on a campus may face published prices quite different from those reported by institutions in the College Board s Annual Survey of Colleges. Even more fundamental, the lines between sectors are increasingly blurry as more two year colleges offer some four year degrees. For these reasons, the average published prices for each sector that Trends in College Pricing 2016 reports are not precise measures. Trends in College Pricing 2016 presents detailed pricing data for public two year and four year colleges and private nonproit fouryear institutions. Although we provide an estimate of the average charges at for proit institutions, because of the relatively small sample of those institutions from which we are able to collect data and the complex pricing structures prevalent in this sector, it is important to interpret that information with caution. Price Changes While the information reported here provides a best approximation of trends in college charges over time, we caution readers about placing too much reliance on either precise dollar amounts or annual percentage changes. Each year we revise the average prices calculated the previous year to account for revised data we receive from institutions. Details relating to our methodology and to other technical issues and data reliability can be found at the end of the report in Notes and Sources. The tables supporting all of the graphs in the Trends publications, PDF versions of the publications, PowerPoint iles containing individual slides for all of the graphs, and other detailed data on student aid and college pricing are available at trends.collegeboard.org. Please feel free to cite or reproduce the data in Trends for noncommercial purposes with proper attribution. 8

Published Charges by Sector, 2016-17 The average published tuition and fee price for in state students enrolled full time at public four year colleges and universities is $9,650 in 2016 17, $230 (2.4% before adjusting for inlation) higher than it was in 2015 16. TABLE 1A Average Published Charges (Enrollment Weighted) for Full Time Tuition and Fees Public Two-Year In-District Public Four-Year In-State Public Four-Year Out-of-State Private Nonproit Four-Year For-Proit 2016-17 $3,520 $9,650 $24,930 $33,480 $16,000 2015-16 $3,440 $9,420 $24,070 $32,330 $15,660 $ Change $80 $230 $860 $1,150 $340 % Change 2.3% 2.4% 3.6% 3.6% 2.2% Room and Board 2016-17 $8,060 $10,440 $10,440 $11,890 2015-16 $7,930 $10,150 $10,150 $11,540 $ Change $130 $290 $290 $350 % Change 1.6% 2.9% 2.9% 3.0% Tuition and Fees and Room and Board Undergraduates by Sector, 2016 17 2016-17 $11,580 $20,090 $35,370 $45,370 2015-16 $11,370 $19,570 $34,220 $43,870 $ Change $210 $520 $1,150 $1,500 % Change 1.8% 2.7% 3.4% 3.4% Sample is too small to provide reliable information. NOTES: Prices in Table 1A are not adjusted for inflation. Prices reported for 2015 16 have been revised and may differ from those reported in Trends in College Pricing 2015. Public two year room and board charges are based on commuter housing and food costs. Tuition and fee figures for the for profit sector should be interpreted with caution because of the relatively small sample. SOURCE: College Board, Annual Survey of Colleges. Enrollment-weighted tuition and fees weight the price charged by each institution by the number of full-time undergraduate students enrolled in fall 2014. Public four-year in-state charges are weighted by total fall 2014 full-time undergraduate enrollment in each institution, including both in-state students and out-of-state students. Out-of-state tuition and fees are computed by adding the average in-state price to the out-of-state premium weighted by the number of full-time out-of-state undergraduate students enrolled at each institution. Room and board charges are weighted by the number of undergraduate students residing on campus for four-year institutions and by the number of commuter students for public two-year institutions. Because average published tuition and fees rose more for out of state students than for in state students in 2016 17, the out of state premium increased by 4.3%, from $14,650 to $15,280. In 2016 17, the average published tuition and fee price of $33,480 at private nonproit four year institutions is $8,550 (34%) higher than the average public four year out of state price. Average published charges, including tuition and fees and room and board, are $10,000 (28%) higher in the private sector. In 2016 17, the average published tuition and fee price of $3,520 at public two year colleges is 36% of the average in state public four year price. The estimated $16,000 average tuition and fee price for full time students enrolled in for proit institutions in 2016 17 is about 4.5 times as high as the average price at public two year colleges and 1.7 times as high as the average in state price at public four year institutions. More than 70% of undergraduate students enrolled full time in 2011 12 received grants that reduced the actual price of college (NCES, NPSAS, 2012). In addition, many states and institutions grant tuition waivers to groups such as veterans, teachers, or dependents of employees. See Figures 9, 10, and 11 for estimates of net prices and Trends in Student Aid 2016 for details about student aid. About one out of six full time public two year students are in California, which has the lowest tuition and fee price in that sector. Excluding California raises the average published price of public two year colleges from $3,520 to $3,910. The total price of a college education depends on how long a student is enrolled before completing a degree. Many students spend more than four years earning a bachelor s degree. Average time to degree is longer in public than in private nonproit institutions. In fall 2014, 62% of students at public two year colleges were enrolled part time, as were 19% of undergraduates at public four year, 17% at private nonproit four year, and 29% at for proit institutions. (NCES, IPEDS fall enrollment data, 2014; calculations by the authors) For detailed data behind the graphs and additional information, please visit: trends.collegeboard.org. 9

Published Charges by Carnegie Classiication, 2016-17 In 2016 17, average published tuition and fee prices for full time in state students in the public four year sector range from $7,110 at bachelor s colleges and $8,340 at master s universities to $10,510 at public doctoral universities. TABLE 1B Average Published Charges (Enrollment Weighted) for Full Time Tuition and Fees Undergraduates by Carnegie Classiication, 2016 17 Public Four-Year In-State Doctoral Master s Bachelor s Private Nonproit Four-Year Doctoral Master s Bachelor s 2016-17 $10,510 $8,340 $7,110 $40,980 $28,890 $32,400 2015-16 $10,250 $8,140 $6,990 $39,490 $27,970 $31,310 $ Change $260 $200 $120 $1,490 $920 $1,090 % Change 2.5% 2.5% 1.7% 3.8% 3.3% 3.5% Room and Board 2016-17 $10,840 $9,680 $9,990 $13,580 $11,220 $11,040 2015-16 $10,540 $9,390 $9,690 $13,200 $10,900 $10,680 $ Change $300 $290 $300 $380 $320 $360 % Change 2.8% 3.1% 3.1% 2.9% 2.9% 3.4% Tuition and Fees and Room and Board 2016-17 $21,350 $18,020 $17,100 $54,560 $40,110 $43,440 2015-16 $20,790 $17,530 $16,680 $52,690 $38,870 $41,990 $ Change $560 $490 $420 $1,870 $1,240 $1,450 % Change 2.7% 2.8% 2.5% 3.5% 3.2% 3.5% Percentage Distribution of Full-Time Undergraduates Within Sector Fall 2014 61% 32% 6% 31% 38% 26% NOTES: Prices in Table 1B are not adjusted for inflation. Prices reported for 2015 16 have been revised and may differ from those reported in Trends in College Pricing 2015. Specialfocus institutions are not included in Table 1B. These institutions enroll less than 1% of all full time undergraduate students in the public four year sector and about 5% of all full time undergraduate students in the private nonprofit four year sector. Carnegie classification is as of 2015. See Notes and Sources on p. 34 for definitions of Carnegie classification. SOURCE: College Board, Annual Survey of Colleges. Enrollment-weighted tuition and fees weight the price charged by each institution by the number of full-time undergraduate students enrolled in fall 2014. Public four-year in-state charges are weighted by total fall 2014 full-time undergraduate enrollment in each institution, including both in-state students and out-of-state students. Room and board charges are weighted by the number of undergraduate students residing on campus. The average published tuition and fee price for full time undergraduates at private nonproit master s universities is 70% of the price at private nonproit doctoral universities $28,890 versus $40,980. Average room and board charges at private nonproit institutions range from $11,040 at bachelor s colleges to $13,580 at doctoral universities. Within each sector, the average institutional grant aid is higher at higher price institutions. As a result, the differences in published prices across types of institutions in each sector are greater than the differences in net prices. For example, in 2013 14, public doctoral universities awarded an average of $3,330 per irst time full time undergraduate student in institutional grant aid, compared to $1,680 at public master s universities, and $1,390 at public bachelor s colleges. (Trends in Student Aid 2016, Figure 23) In the private nonproit sector, institutional grant aid in 2013 14 averaged $16,120 per irst time full time undergraduate student at doctoral universities, $13,400 at master s universities, and $13,840 at bachelor s colleges. (Trends in Student Aid 2016, Figure 23) In the public four year sector, published in state tuition and fees at doctoral, master s, and bachelor s institutions increased by 16% to 27% over the four years from 2008 09 to 2012 13 and by less than 6% over the next four years. (Trends in College Pricing, 2008 through 2016, Table 1B; calculations by the authors) In the private nonproit four year sector, published tuition and fees at doctoral, master s, and bachelor s institutions increased by 9% to 15% over the four years from 2008 09 to 2012 13 and by 6% to 12% over the next four years. (Trends in College Pricing, 2008 through 2016, Table 1B; calculations by the authors) 10 For detailed data behind the graphs and additional information, please visit: trends.collegeboard.org.

Student Budgets, 2016-17 Tuition and fees constitute 39% of the total budget for in state students living on campus at public fouryear institutions and 21% of the budget for public two year college students who pay for off campus housing. FIGURE 1 Average Estimated Full Time Undergraduate Budgets (Enrollment Weighted) by Sector, 2016 17 Tuition and Fees Room and Board Books and Supplies Transportation Other Expenses Public Two-Year In-District Commuter Public Four-Year In-State On-Campus Public Four-Year Out-of-State On-Campus Private Nonprofit Four-Year On-Campus $1,760 $3,520 $8,060 $2,270 $17,000 $1,390 $1,160 $9,650 $10,440 $2,110 $24,610 $1,250 $1,160 $24,930 $10,440 $2,110 $39,890 $1,250 $1,650 $1,070 $33,480 $11,890 $1,230 $49,320 $0 $10,000 $20,000 $30,000 $40,000 $50,000 Undergraduate Budget NOTES: Expense categories are based on institutional budgets for students as reported by colleges and universities in the College Board s Annual Survey of Colleges. Figures for tuition and fees and room and board mirror those reported in Table 1A. Other expense categories are the average amounts allotted in determining the total cost of attendance and do not necessarily reflect actual student expenditures. SOURCE: College Board, Annual Survey of Colleges. Student budgets are constructed by institutional inancial aid ofices. These budgets form the basis for determining the total cost of attendance, which can affect the amount of inancial aid for which students are eligible. Room and board and other components of student budgets vary less across sectors than tuition and fees. As a result, while the average in state published tuition and fee price at public four year institutions is 2.7 times as high as the price at public two year colleges, the total student budget is only 1.4 times as high. The average in state published tuition and fee price at public four year institutions is 29% of the average at private nonproit four year institutions, but the average student budget is 50% as high. According to the National Association of College Stores, the average price of a new textbook increased from $57 in 2007 to $82 in 2014. The gap between new and used book prices has increased over time, with the latter rising from $49 to $59 over these years. (http://www.nacs.org/research/industrystatistics/ higheredfactsigures.aspx) Most forms of inancial aid, including federal and state grants and federal loans, can cover any expenses included in student budgets, not just tuition and fees. However, federal education tax credits and deductions cover books, supplies, and equipment required for attendance, but not room and board. Housing, food, and other living expenses are not actually costs of attending college since people must pay for these things whether or not they are in college. However, a very signiicant cost of going to college is forgone earnings from time devoted to school instead of to the labor market. Without adequate earnings, many students struggle to meet daily expenses, and non tuition components of student budgets can easily interfere with student success. For detailed data behind the graphs and additional information, please visit: trends.collegeboard.org. 11

Regional Variation in Charges In 2016 17, average published tuition and fees for in state students at public four year colleges and universities range from $8,990 in the South to $12,460 in New England. FIGURE 2 Average Tuition and Fees and Room and Board (Enrollment Weighted) by Sector and College Board Region, 2016 17 Private Nonproit Public Four-Year Public Two-Year Four-Year Middle States Midwest New England South Southwest West Middle States Midwest New England South Southwest West Middle States Midwest New England South Southwest $5,010 Tuition and Fees Room and Board $9,530 $14,540 $4,090 $6,710 $10,800 $5,210 $8,320 $13,530 $3,680 $6,760 $10,440 $2,580 $7,810 $10,390 $2,500 $8,360 $10,860 $10,330 $10,160 $12,460 $8,990 $9,000 $9,140 $8,760 $11,920 $9,550 $9,470 $12,310 $11,660 $35,530 $32,090 $29,190 $31,650 $42,260 $22,250 $19,710 $18,460 $17,760 $21,450 $24,120 $10,680 $10,280 $10,190 $13,300 $39,870 $42,370 $41,840 $14,070 $48,830 $56,330 In 2016 17, average published tuition and fees for full time in district students at public two year colleges range from $2,500 in the West to $5,210 in New England. In 2016 17, the dollar gap between average tuition and fees at public four year and public two year institutions was largest in New England ($7,250) and smallest in the South ($5,310). Average room and board charges at public four year institutions range from $8,760 in the Southwest to $12,310 in the West. Room and board as a percentage of total charges ranges from 48% in the Midwest and New England to 57% in the West. Increases in average tuition and fees at public four year institutions from 2006 07 to 2016 17 ranged from 24% ($1,970 in 2016 dollars) in the Midwest to 66% ($3,640) in the West. Despite this large increase, the average price in the West in 2016 17 is $3,320 (27%) lower than the price in New England, where the price rose 37% over the decade. The largest percentage increase in average tuition and fees at public two year colleges between 2006 07 and 2016 17 was 61% in the West, which has the lowest published tuition and fees in 2016 17. West $29,910 $11,960 $41,870 $0 $10,000 $20,000 $30,000 $40,000 $50,000 Ten Year Dollar Change and Ten Year Percentage Change in Inflation Adjusted Tuition and Fees, 2006 07 to 2016 17 Region Middle States Public Two-Year In-District Ten-Year $ Change $900 Ten-Year % Change 22% Ten-Year $ Change $2,220 Public Four-Year In-State Ten-Year % Change 27% Private Nonproit Four-Year Ten-Year $ Change Midwest $730 22% $1,970 24% $7,400 30% New England $1,270 32% $3,400 37% $8,640 26% South $1,130 44% $3,400 61% $6,200 27% Southwest $580 29% $2,450 37% $9,980 46% West $950 61% $3,640 66% $4,140 16% $7,750 Ten-Year % Change NOTES: Public two year room and board charges are based on commuter housing and food costs. States and territories included in the regions are as follows: Middle States: DC, DE, MD, NJ, NY, PA, and PR; Midwest: IA, IL, IN, KS, MI, MN, MO, NE, ND, OH, SD, WI, and WV; New England: CT, MA, ME, NH, RI, and VT; South: AL, FL, GA, KY, LA, MS, NC, SC, TN, and VA; Southwest: AR, NM, OK, and TX; West: AK, AZ, CA, CO, HI, ID, MT, NV, OR, UT, WA, and WY. SOURCE: College Board, Annual Survey of Colleges. 28% 12 For detailed data behind the graphs and additional information, please visit: trends.collegeboard.org.

Variation in Tuition and Fees, 2016-17 In 2016 17, while the median price for full time students attending private nonproit four year institutions is $35,020, 10% of full time students attend institutions with prices below $12,000 and 7% attend institutions charging $51,000 or more. FIGURE 3 Distribution of Full Time Undergraduates at Four Year Institutions by Published Tuition and Fees, 2016 17 Public and Private Nonproit Four-Year Combined Public Four-Year Private Nonproit Four-Year (Median = $11,730) (Median = $9,910) (Median = $35,020) $51,000 and over 2.2% 0.0% 7.0% $48,000 to $50,999 3.3% 0.0% 9.9% $45,000 to $47,999 2.3% 0.3% 7.5% $42,000 to $44,999 2.3% 0.0% 7.2% $39,000 to $41,999 2.5% 0.4% 7.1% $36,000 to $38,999 2.6% 0.3% 7.5% Fees $33,000 to $35,999 3.3% 1.1% 8.3% Published Tuition and $30,000 to $32,999 3.9% 1.7% 8.7% $27,000 to $29,999 3.8% 1.6% 8.5% $24,000 to $26,999 3.4% 2.0% 6.3% $21,000 to $23,999 3.1% 2.6% 4.1% $18,000 to $20,999 2.4% 2.1% 3.1% $15,000 to $17,999 4.1% 4.6% 3.0% $12,000 to $14,999 9.8% 13.5% 1.6% $9,000 to $11,999 21.1% 29.7% 2.1% $6,000 to $8,999 27.1% 36.9% 5.5% Under $6,000 3.0% 3.2% 2.3% 0% 10% 20% 30% 40% 0% 10% 20% 30% 40% 0% 10% 20% 30% 40% Percentage of Full-Time Undergraduates NOTES: For out of state students enrolled in public four year institutions, the nonresident premium has been added to in state tuition and fees. Some out ofstate students benefit from reciprocity agreements, which allow students from neighboring states to pay less than the full out of state price. The distribution of students across institutions is based on the latest available enrollment data, which are for fall 2014. Percentages may not sum to 100 because of rounding. SOURCE: College Board, Annual Survey of Colleges. In 2016 17, among all full time public four year college undergraduates, including both in state and out of state students, 37% are enrolled in institutions with published tuition and fee levels between $6,000 and $8,999, 3% are in institutions with lower prices, and 17% face published prices of $15,000 or more. Figure 3 includes both in state and out of state students attending public four year institutions and the associated published prices. About 80% of those facing charges of $15,000 or more are enrolled outside their states of residence. Half of the full time students enrolled at public and private nonproit four year colleges and universities in 2016 17 face published tuition and fee prices above $11,730; prices are below this level for the other 50% of students. For detailed data behind the graphs and additional information, please visit: trends.collegeboard.org. 13

Published Charges over Time Between 2006 07 and 2016 17, published in state tuition and fees at public four year institutions increased at an average rate of 3.5% per year beyond inlation, compared to average annual increases of 3.9% and 4.2% over the two prior decades. FIGURE 4 Average Annual Percentage Increase in Inlation Adjusted Published The 3.5% per year average rate of increase in Prices by Decade, 1986 87 to 2016 17 published tuition and fees in the public four year sector between 2006 07 and 2016 17 corresponds 1986-87 to 1996-97 1996-97 to 2006-07 2006-07 to 2016-17 to an average annual increase of $280 in 2016 5% 4.5% dollars, compared to $150 per year between 4.2% 3.9% 1986 87 and 1996 97 and $230 per year between 4% 3.5% 1996 97 and 2006 07. (online Table 2; calculations 3.3% 3.1% 2.9% 3% 2.8% 2.7% 2.8% by the authors) 2.4% 2.5% 2.3% 2.1% 2% 1.8% Average Annual Percentage Increase 1% 0% Private Nonproit Public Public Private Nonproit Public Four-Year Four-Year Two-Year Four-Year Four-Year Tuition and Fees Tuition and Fees and Room and Board NOTES: Each bar in Figure 4 shows the average annual rate of growth of published prices in inflation adjusted dollars over a 10 year period. For example, from 2006 07 to 2016 17, average published tuition and fees at private nonprofit four year colleges rose by an average of 2.4% per year beyond increases in the Consumer Price Index. Average tuition and fee prices reflect in district charges for public two year institutions and in state charges for public four year institutions. SOURCES: College Board, Annual Survey of Colleges; NCES, Integrated Postsecondary Education Data System (IPEDS). FIGURE 5 Inlation Adjusted Published Tuition and Fees Relative to 1986 87, 1986 87 to 2016 17 (1986 87 = 1.0) The average annual rate of increase in published tuition and fees at private nonproit four year institutions declined from 3.1% between 1986 87 and 1996 97 to 2.9% over the next decade and to 2.4% between 2006 07 and 2016 17. The average dollar increase rose from $530 per year to $650 and to $710 over these decades. (online Table 2; calculations by the authors) Room and board charges consistently rise more slowly than tuition and fees, although the gap in growth rates has narrowed over time. The rates of increase in published tuition and fees were similar across all three sectors of nonproit higher education between 1986 87 and 2000 01. However, from 2001 02 through 2011 12, the growth rate of prices at public four year institutions exceeded that in other sectors. Inlation-Adjusted Published Tuition and Fees Relative to 1986-87 3.5 3.0 2.5 2.0 1.5 2.84 2.18 2.03 Public 3.10 Four-Year Public Two-Year Private Nonproit Four-Year 2.43 2.29 Median family income in the United States rose at an average rate of 0.5% per year between 1986 and 1996 and 0.8% per year between 1996 and 2006. Median family income grew at an average rate of 0.4% per year from 2005 to 2015 (after adjusting for inlation) despite declines each year from 2008 to 2012. (U.S. Census Bureau, 2015 Income Data, Table F 6; calculations by the authors) 1.0 86-87 88-89 90-91 92-93 94-95 96-97 98-99 00-01 02-03 04-05 06-07 08-09 10-11 12-13 14-15 16-17 Academic Year NOTES: Figure 5 shows published tuition and fees by sector, adjusted for inflation, relative to 1986 87 published prices. For example, a value of 3.10 indicates that the tuition and fee price in the public four year sector in 2016 17 is 3.1 times as high as it was in 1986 87, after adjusting for increases in the Consumer Price Index. Average tuition and fee prices reflect in district charges for public two year institutions and in state charges for public four year institutions. SOURCES: College Board, Annual Survey of Colleges; NCES, IPEDS. 14 For detailed data behind the graphs and additional information, please visit: trends.collegeboard.org.