Financing a college education is a major concern for students, but according to the College Board’s Annual Report on Tuition and Student Aid, the worst could be yet to come.
For the past decade, college tuition has increased by one to three percentage points above the consumer price index, which is the measure of the average price of consumer goods and services purchased by households.
In-state tuition and fees at four-year public institutions averaged $6,185 for the 2007-08 school year, nearly $381 dollars more than the 2006-07 school year.
However, with the economic downturn in the last six months, more states are looking to higher education as a way to help reduce budgets, according to the report.
American Council on Education President Molly Corbett said in a statement this could mean higher education may be entering a period similar to the late 1980s and early 1990s when tuition prices at both public and private institutions increased greatly.
“Given the economic strain on state budget, the pressure on state governments to shift the cost of education to students and families may prove irresistible,” Corbett said in the statement. “Private institutions, too, given the loss of endowment income and expected cutbacks in private giving, will likely be forced to increase tuition at the same time they struggle to increase institutional financial aid.”
The University of Wisconsin System is unsure of what will happen to tuition prices in the future, according to UW System spokesperson David Giroux.
“It’s way too soon to start predicting tuition increases for the 2010-11 school years,” Giroux said. “That will be decided in July or August at the earliest.”
The UW System’s budget depends on the state budget, which Gov. Jim Doyle will submit in February. After the budget is approved by the Legislature, it will lay the framework for the UW System’s budget from July 2009 to 2011, Giroux said.
“A lot of state leaders believe that investing more money in higher education will help better the economy,” Giroux said. “Higher tuition rates aren’t a guarantee for the future.”
If tuition rates were to increase, the economy could take yet another hit, according to Jacob Stampen, UW professor emeritus of educational leadership and policy analysis.
“To help increase the quality of the work force, we need to invest in higher education,” Stampen said. “If the aid you can provide isn’t enough, you are going to discourage students from coming to college, rather than encouraging them, and we should encourage as many students as possible to enroll in universities.”
The UW System currently offers advising services to help students reduce their debt, according to Giroux.
“We have been helping students take fewer credits on their way to their bachelor’s degree,” Giroux said. “This helps students save money by eliminating unnecessary classes from their schedules and opening up seats for students who need those same classes to graduate. This allows us to increase the capacity of our educational pipeline with the same amount of spending.”
Giroux said there are no plans to increase tuition for the spring semester or the fall 2009 semester.
