Critics of colleges and universities rising tuitions and fees have fresh ammunition today. A new College Board study reports that published in-state tuitions and fees at public four-year schools averaged $7,020 for the 2009-2010 academic year, 6.5 percent higher than the previous year.

Meanwhile, published tuition and fees at private, not-for-profit four-year colleges averaged $26,273 for the 2009-2010 academic year, up 4.4 percent.

The consumer price index for the 12 months ended Sept. 2009 was actually down 1.3 percent on an unadjusted basis, according to the Bureau of Labor Statistics (see page 1.)

But here's a critically important piece of information. While the published price of a college education has grown significantly faster than the pace of inflation, the actual cost to students and their families has in many cases fallen because of financial aid and tax credits, according to the College Board. The College Board says average college costs is lower now than five years ago because of such assistance.

(Disclaimer: I'm on the board of my alma mater, Dickinson College, so I've been involved in conversations on these very issues.)

 

Although average published tuition and fees increased by about 15% in inflation-adjusted dollars at private not-for-profit four-year and by about 20% at public four-year colleges and universities from 2004-05 to 2009-10, average estimated 2009-10 net price for full-time students, after considering grant aid and federal tax benefits, is about $1,100 lower (in 2009 dollars) in the private sector and $400 lower in the public sector than it was five years ago.

Some critics may blame high-priced faculty for the faster-than-inflation rise in tuition and fees. They might also accuse colleges and universities for fattening endowments at the expense of students.

But this doesn't appear to be what's happening.

At private, four-year, non-profit colleges salaries in inflation-adjusted dollars rose just 11 percent from 1991-1992 to 2007-2008. Inflation during the same period rose about 53 percent. Community college salaries are actually the same today, adjusted for inflation, as they were in 1991-1992.

Meanwhile, only a few colleges and universities have enormous endowments and most of those are a lot smaller now than they were two years ago because of the retrenchment of the financial markets.

Furthermore, according to the College Board, colleges and universities are getting less in state appropriations per $1,000 in personal income in the state. In 2008-2009 they received $6.50 per $1,000. That's down from $9.74 in 1989-1990.

So most colleges and universities aren't laughing all the way to the bank because of higher tuition and fee increases.

Instead, they're trying to figure out how to cope with the mounting costs of health insurance, energy and other necessities while trying not to defer maintenance too long on buildings and hoping that rising costs don't force them to raise prices so high that only the wealthiest students are able to afford a college education.