Colleges that Froze Tuition

The following colleges are to be commended for freezing tuition this coming academic year: Alderson Broaddus University (W. Va.) (also froze room and board); Assumption College (Mass.); Bethany College (W. Va.); College of St. Elizabeth (N.J.); Davis & Elkins College (W. Va.); Eureka College (Ill.) (also froze room and board); Geneva College (Pa.) (with no reduction in financial aid); Hiram College (Ohio); Lincoln Christian University (Ill.); Lincoln College (Ill.); Mount Marty College (S.D.); Sage College (N.Y.); St. Mary’s College of Maryland; University of Missouri; and Woldorf College (Iowa).

Now, I’m not naive: I realize some of these colleges may not be freezing net tuition, that is, the tuition that’s actually charged the students as opposed to the published tuition. Nonetheless, the freeze benefits current students who otherwise would be facing stiff increases. (For the way tuition increases impact current students disproportionately, see this post.) So, the tuition freezes are very good news for the vast majority of students at these schools even if the impact on new students is negligible.

I also realize that colleges don’t freeze tuition unless they have to do so. I strongly suspect each of the schools listed above is under tremendous enrollment pressures. Yet I still give them credit for their decisions to freeze tuition because many schools in similar straits increase tuition if for no other reason than to reap increased revenue from current students.

Initially, I planned on keeping track of colleges that were increasing tuition at a higher rate than the increase in the consumer price index (CPI) or median wages. I gave up because the list was getting too long.

Tuition increases against this economic backdrop are unsustainable

For months now, I’ve been reading reports of colleges and universities all across the country increasing their prices. Sometimes their tuition increases are robust. Only a relative few institutions have held the line. Purdue courageously staked out an early position against ever-escalating prices (see this post); however, it was unable to establish a following.

Based on my understanding of the economy’s performance and the finances of the average American, I’ve been wondering how these schools are justifying their increases. I’ve wondered how students and families can afford to pay more, especially when you consider that a 4% tuition increase at many private colleges is tantamount to a 10% increase for current students. (To understand how this works, see this post.)

Nonetheless, the increases continue — increases that not only exceed the increase in inflation but also changes to household income.

Why the 3.9% tuition increase is actually a 9.8% increase or more for some students

In the world of nonprofit, private colleges, current students take it on the chin at many schools from year to year, in a way that generally doesn’t create the consternation one would expect. It’s all because of the impact of tuition discounting and the way increases in tuition play out. Permit me to explain.

Tuition hikes put college out of reach for more Americans

As previously reported, state governments are disinvesting in higher education. It’s one of the reasons student debt is skyrocketing and a college education is becoming beyond the reach of many Americans. Here are some examples of the way states will be placing a higher financial burden on college students and their families this fall: