2022-2023 School Year College Cost Data for

The College Board annually releases  new college cost data and trends. Average cost figures of approximately 4,000 colleges across the country are included in the survey.

Average price for tuition, fees, and room and board has increased 46% at public colleges and 30% at private colleges over and above increases in the Consumer Price Index over the past 20 years. The increase  is reflected in the student debt increase.

Here are cost highlights for the 2022-2023 year.1 This year, public colleges have done a better job than private colleges at keeping tuition and fee increases under 2.3%. Note: “Total cost of attendance” includes direct billed costs for tuition, fees, and  room and board, plus indirect costs for books, transportation, and personal expenses.

Public colleges: in-state students

 Tuition and fees increased 1.8% to $10,940
 Room and board increased 3.0% to $12,310
 Average total cost of attendance: $27,940

Public colleges: out-of-state students

Tuition and fees increased 2.2% to $28,240 
Room and board increased 3.0% to $12,310 (same as in-state)      
Average total cost of attendance: $45,240

Private colleges

Tuition and fees increased 3.5% to $39,400
Room and board increased 3.0% to $14,030
Average total cost of attendance: $57,570

Note: Many private colleges are at or approaching $80,000  per year in total costs.

Sticker price vs. net price

The College  Board’s cost figures are based on published college sticker prices. Many families pay less than full sticker price. A net price calculator, available on every college website, can help families see beyond a college’s sticker price. It can be a very useful tool for students who are currently researching and/or applying to colleges.

A net price calculator provides an estimate of how much grant aid a student might be eligible for at a particular college based on the student’s financial information and academic record, giving families an estimate of what their out-of-pocket cost — or net price — will be. The results aren’t a guarantee of grant aid, but they are meant to give as accurate a picture as possible.

FASFA for 2023-2024 year opened on October 1

Planning for college costs should start years before the first year of college. The Free Application for Federal Student Aid (FAFSA) for the 2023-2024 year opened on October 1. It’s important to keep in mind that the 2023-2024 FAFSA will factor in your income information from two years prior, which it will get from your 2021 federal income tax return, but it uses current asset information.2 Your income is the biggest factor in determining financial aid eligibility.

1) College Board, Trends in College Pricing and Student Aid 2022

2) U.S. Department of Education, 2022

FAFSA Opens October 1or 2023-2024 School Year

College Students can start filing the Free Application for Federal Student Aid (FAFSA) for the next academic year October 1, 2022. The FAFSA is a prerequisite for federal student loans, grants, and work-study, and may be required by colleges before they distribute their own institutional aid to students.

Some tips for filing  FAFSA

• The fastest and easiest way to submit the FAFSA is online at https://studentaid.gov/. The site contains resources and tools to help complete the form, including a list of the documents and information need to file it. The online FAFSA allows your tax data to be directly imported from the IRS, which speeds up the overall process and reduces errors. The FAFSA can also be filed in paper form, but it will take much longer for the government to process it.
• You and your child will each need to obtain an FSA ID (federal student aid ID), which can be completed  online. Instructions for completing the application are provided. The FSA ID can be used each  year.
• The earlier you file the application the sooner it can be processed. The federal aid programs operate on a first-come, first-served basis. Colleges typically have a priority filing date for both incoming and returning students; the priority filing date can be found in the financial aid section of a college’s website. You should submit the FAFSA before that date.
• Students must submit the FAFSA every year to be eligible for financial aid (along with any other college-specific financial aid form that may be required,  such as the CSS Profile). Any colleges you list on the FAFSA will also get a copy of the report.
• There is no cost to submit the FAFSA.

Calculating financial need for the FAFSA

The FAFSA looks at a family’s income, assets, and household information to calculate a family’s financial need. This figure is known as the expected family contribution, or EFC. All financial aid packages are built around this number.

FAFSA uses information in  your tax return from two years earlier to determine your income. This year is often referred to as the “base year” or the “prior-prior year.” For example, the 2023-2024 FAFSA  will use income information in  your 2021 tax return, so 2021 would be the base year or prior-prior year.

FAFSA uses the current value of your and your child’s assets. Assets that not counted do not need to be listed on the FAFSA. These include home equity in a primary residence, retirement accounts (e.g., 401k, IRA), annuities, and cash-value life insurance. Student assets are weighted more heavily than parent assets; students must contribute 20% of their assets vs. 5.6% for parents.

Your EFC remains constant, no matter which college your child attends. The difference between your EFC and a college’s cost of attendance equals your child’s financial need. Your child’s financial need will be different at every school.

After your EFC is calculated, the financial aid administrator at your child’s school will attempt to create an aid package to meet your child’s financial need by offering a combination of loans, grants, scholarships, and work-study. Colleges are not obligated to meet 100% of your child’s financial need. You are responsible for paying the difference between the cost and the amount of the package. Colleges often advertise on their website and brochures whether they meet “100% of demonstrated need.”

Two (2) reasons for many applicants to File the FAFSA even if your child is unlikely to qualify for aid.

First, all students attending college at least half time are eligible for unsubsidized federal student loans, regardless of financial need or income level. (“Unsubsidized” means the borrower, rather than the federal government, pays the interest that accrues during school, the grace period, and any deferment periods after graduation.) If you want your child to be eligible for this federal loan, you’ll need  to submit the FAFSA. Your child won’t be locked in to taking out the loan. If you submit the FAFSA and then decide your child doesn’t need the student loan, your child can decline it through the college’s financial aid portal before the start of the  school year.

Second, colleges typically require the FAFSA when distributing their own need-based aid, and in some cases as a prerequisite  for merit aid. So, filing the FAFSA can give your child the broadest opportunity to be eligible for college-based aid. Similarly, many private scholarship sources may want to see the results of the FAFSA.

Next year’s FAFSA will change

Changes are coming to the 2024-2025 FAFSA, which will be available October 1, 2023. These changes are being implemented a year later than originally planned. One notable modification is the term “expected family contribution,” or EFC, will be replaced by “student aid index,” or SAI, to better reflect what this number is supposed to represent — a measure of aid eligibility and not a definite amount of what families will pay. Other important changes are that parents with multiple children in college at the same time will no longer receive a discount in the form of a divided SAI; income protection allowances for both parents and students will be increased; and cash support to students and other types of income will no longer have to be reported on the FAFSA, including funds from a grandparent-owned 529 plan.

College Cost Data for 2021-2022 Academic Year

Annually, the College Board releases new college cost data and trends in its annual report. Keep in mind costs can vary significantly depending on region and college when reviewing the averages.
Over the past decade, average tuition, fee, room, and board costs have increased 11% at public colleges and 14% at private colleges over and above increases in the Consumer Price Index. Here are cost highlights for the 2021-2022 year.¹

Public colleges: in-state students

• Tuition and fees increased 1.6% to $10,740
• Room and board increased 1.9% to $11,950
• *Total cost of attendance: $27,330

Public colleges: out-of-state students

• Tuition and fees increased 1.5% to $27,560
• Room and board increased 1.9% to $11,950 (same as in-state)
• *Total cost of attendance: $44,150

Private colleges

• Tuition and fees increased 2.1% to $38,070
• Room and board increased 2.3% to $13,620
• *Total cost of attendance: $55,800

* Total cost of attendance includes direct billed costs for tuition, fees, room, and board, plus an amount for indirect costs for books, transportation, and personal expenses.

Sticker price vs. net price

The College Board’s college cost figures are based on published college sticker prices. But many families don’t pay the full sticker price. A net price calculator, available on every college website, can help families see beyond a college’s sticker price.

A net price calculator provides an estimate of how much grant aid a student might be eligible for at a particular school based on the student’s financial information and academic record, allowing families to estimate what their out-of-pocket cost, or net price, will be. The results aren’t a guarantee of grant aid, but they are meant to be close. A net price calculator can be a useful tool for students who are currently researching and/or applying to colleges.

 

FASFA for 2022-2023 year opened on October 1

The Free Application for Federal Student Aid (FAFSA) for the 2022-2023 school year opened on October 1, 2021. The 2022-2023 FAFSA relies on income information from your 2020 federal income tax return and current asset information. Your income is the biggest factor in determining financial aid eligibility.

Note: The FAFSA is getting an overhaul to simplify it. The changes will be phased in, with all changes expected to be completed for the 2024-2025 FAFSA (available starting October 1, 2023), a year later than originally planned. Three things to watch out for: (1) the expected family contribution, or EFC, will be replaced with a measurement known as the student aid index, or SAI; (2) parents with multiple children in college at the same time will no longer receive a discount in the form of a lower EFC; and (3) cash support and other types of income will no longer have to be reported on the FAFSA, including funds from a grandparent-owned 529 plan.²

Student loan repayment to resume in February

Repayment on federal student loans is set to resume beginning February 1, 2022. There have been four pauses to federal student loan repayment since the start of the pandemic. The first pause was instituted in March 2020 for six months (through September 2020) when Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The second and third pauses came via presidential executive order and extended the payment pause through January 2021 and through September 2021, respectively. The fourth and “final” extension is now scheduled through January 31, 2022, meaning payments will resume beginning February 1, 2022.³

 

1) College Board, Trends in College Pricing and Student Aid 2021

2) savingforcollege.com, FAFSA Simplification Pushed Back 1 Year, June 14, 2021

3) U.S. Department of Education, 2021

 

Student Loan Payment Pause Extended Through January 2022

On August 6, 2021, the U.S. Department of Education announced an extension of the pause on federal student loan payments to January 31, 2022. The payment moratorium, currently in effect for millions of federal student loan borrowers, was set to end on September 30, 2021.

The Department noted that this extension would be the last one. U.S. Secretary of Education Miguel Cardona stated: “As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for restart and ensure a smooth pathway back to repayment.”1

How many payment pauses have there been?

There have been four pauses to federal student loan repayment since the start of the coronavirus pandemic. The first pause was instituted in March 2020 for six months (through September 2020) when Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The second and third pauses came via presidential executive order and extended the payment pause through January 2021 and through September 2021, respectively. The fourth and “final” extension is now scheduled through January 31, 2022. This means federal student loan payments will resume beginning February 1, 2022.

The Department of Education will begin notifying borrowers about this final extension in the coming days, and it will release resources and information about how to plan for repayment as the end of the pause approaches.

Does interest continue to accrue during the moratorium period?

No, interest does not accrue during the moratorium period. Essentially, the interest rate is set at 0%.

Can borrowers make payments if they want to during this time?

Yes. Borrowers can choose to keep making their monthly student loan payments during the moratorium period if they wish. The full amount of a borrower’s payment will be applied to principal. Borrowers can also choose to make partial payments during this time.

Do private student loans qualify for the payment pause?

No, private student loans aren’t eligible. Only student loans held by the federal government are eligible. This includes Federal Direct Loans (which includes PLUS Loans), along with Federal Perkins Loans and Federal Family Education Loan (FFEL) Program loans held by the Department of Education.

Is student loan forgiveness likely when the payment pause ends?

Probably not. While some legislators have gone on record in favor of forgiving a certain amount of federal student loan debt per borrower, the Biden administration has not taken any steps in this direction and has given no indication that it will do so. Borrowers should be ready to start repaying their loans when the pause ends on January 31, 2022. In the case of continued financial hardship at that time, borrowers should contact their loan servicer to inquire about requesting an individual deferment or forbearance.

For more information, visit the Federal Student Aid website.

1) U.S. Department of Education, 2021

New College Cost Data for 2020-2021 School Year

Every year, the College Board releases updated college cost data and trends in its annual report. Although costs can vary significantly depending on region of the country and college, the College Board publishes average cost figures, which are based on a survey of approximately 4,000 colleges across the country.

Following are cost highlights for the 2020-2021 academic year.(1) Because many residential colleges shifted to an online model this year, the College Board estimated 2020-2021 room and board figures to be the same as 2019-2020, adjusted for a 1% inflation rate.

“Total cost of attendance” includes direct billed costs for tuition, fees, room, and board, plus a  sum for indirect costs that includes books, transportation, and personal expenses, which will vary by student.

Public college costs (in-state students)

• Tuition and fees increased 1.1% to $10,560
• Room and board increased 1% to $11,620
• Total cost of attendance: $26,820

Public college costs (out-of-state students)

• Tuition and fees increased 0.9% to $27,020
• Room and board increased 1% to $11,620 (same as in-state)
• Total cost of attendance: $43,280

Private college costs

• Tuition and fees increased 2.1% to $37,650
• Room and board increased 1% to $13,120
• Total cost of attendance: $54,880

Over the past decade, the average published tuition, fees, room, and board at private 4-year colleges increased by 17% beyond increases in the Consumer Price Index, and at 4-year public colleges increased 15% beyond increases in the Consumer Price Index.(2)

FAFSA opened October 1st

The FAFSA for the next school year, 2021-2022, opened on October 1, 2020. The 2021-2022 FAFSA  relies on income information from your 2019 federal income tax return and current asset information. Your income is the biggest factor in determining financial aid eligibility.

A detailed analysis of the federal aid formula is beyond the scope of this article, but generally here’s how your expected family contribution (EFC) is calculated:(3)

• Parent income is counted up to 47% (income equals adjusted gross income, plus untaxed income/benefits minus certain deductions)
• Student income is counted at 50% over the student’s income protection allowance ($6,970 for the 2021-2022 year)
• Parent assets over the asset protection allowance are counted at 5.64% (home equity, retirement accounts, cash value life insurance, and annuities are not counted at all)
• Student assets are counted at 20%

Your EFC remains constant, no matter which college your child attends.   Your EFC is not the same as your child’s financial need. To calculate financial need, subtract your EFC from the cost of a specific college. Because costs vary at each college, your child’s financial need will vary by college.

Just because your child has financial need doesn’t automatically mean that colleges will meet 100% of that need. Colleges that do meet 100% of “demonstrated need” usually advertise this; not all colleges do. If a college doesn’t meet 100% of your child’s financial need, you’ll have to make up the gap, in addition to paying your EFC.

To get an estimate ahead of time what your out-of-pocket cost might be at a particular school, run a college’s net price calculator, which is available on every college website. You input income, asset, and general family information and the net price calculator provides an estimate of the grant aid your child might expect at that particular college. The cost of the college minus this grant aid equals your net price, hence the name “net price calculator.”

Reduced asset protection allowance

Over the past two decades, a stealth change in the FAFSA has been negatively impacting a family’s eligibility for financial aid. The asset protection allowance, which lets parents shield a certain amount of assets from consideration (in addition to the assets listed above that are already shielded), has been steadily declining for years, resulting in higher EFCs. Ten years ago, the asset protection allowance for a 48-year-old married parent with a child about to enter college was $46,200. For 2021-2022, that same allowance is $6,600, resulting in a $2,233 decrease in a student’s aid eligibility ($46,200 – $6,600 x 5.64%).(4)

Student loan debt

Student debt is the  second-highest consumer debt category after mortgage debt, ahead of both auto loans and credit card debt.(5) More than six in ten (62%) college seniors who graduated  in 2019 had student loan debt, owing an average of $28,950.(6) Paying careful attention to costs at college time might help you and/or your child avoid excessive student loan debt.

1-2) College Board, 2020

3-4) U.S. Department of Education,  The EFC Formula, 2021-2022, 2011-2012

5) Federal Reserve Bank of New York, Quarterly Report on Household Debt and Credit, August 2020

6) Institute for College Access & Success, Student Debt and the Class of 2019, October 2020

College Cost Data for 2019-2020 School Year

Each year, the College Board releases its annual Trends in College Pricing report that highlights current college costs and trends. While costs can vary significantly depending on the region and college, the College Board publishes average cost figures, which are based on a survey of nearly 4,000 colleges across the country.

Following are cost highlights for the 2019-2020 academic year. 1) Note that “total cost of attendance” figures include direct billed costs for tuition, fees, room, and board, plus a sum for indirect costs that includes books, transportation, and personal expenses, which will vary by student.

Public college costs (in-state students)

• Tuition and fees increased 2.3% to $10,440
• Room and board increased 2.9% to $11,510
• Total cost of attendance: $26,590

Public college costs (out-of-state students)

• Tuition and fees increased 2.4% to $26,820
• Room and board increased 2.9% to $11,510 (same as in-state)
• Total cost of attendance: $42,970

Private college costs

• Tuition and fees increased 3.4% to $36,880
• Room and board increased 3.0% to $12,990
• Total cost of attendance: $53,980

Reminder on FAFSA timeline

Families were able to begin filing the 2020-2021 FAFSA (Free Application for Federal Student Aid) on October 1, 2019. The earlier timeline was instituted a few years ago to better align the financial aid process with the college admissions process and to give parents information about their child’s aid eligibility earlier in the process.

The 2020-2021 FAFSA relies on income information from your 2018 federal income tax return and current asset information. Your income is the biggest factor in determining financial aid eligibility. A detailed analysis of the federal aid formula is beyond the scope of this article, but generally here’s how it works: 2)

• Parent income is counted up to 47% (income equals adjusted gross income, plus untaxed income/benefits minus certain deductions)
• Student income is counted at 50% over a certain amount ($6,840 for the 2020-2021 academic year)
• Parent assets are counted at 5.64% (home equity, retirement accounts, cash value life insurance, and annuities are excluded)
• Student assets are counted at 20%

The result is a figure known as your expected family contribution, or EFC. Your EFC remains constant, no matter which college your child attends.   Your EFC is not the same as your child’s financial need. To calculate financial need, subtract your EFC from the cost at a specific college. Because costs vary at each college, your child’s financial need will vary depending on the cost of a particular college.

One thing to keep in mind: Just because your child has financial need doesn’t automatically mean that colleges will meet 100% of that need. In fact, it’s not uncommon for colleges to meet only a portion of it. In this case, you’ll have to make up the gap, in addition to paying your EFC.

To get an estimate ahead of time of what your out-of-pocket costs might be at various colleges, run the net price calculator on each college’s website. A net price calculator asks for income, asset, and general family information and provides an estimate of grant aid at that particular college. The cost of the school minus this grant aid equals your estimated net price, hence the name “net price calculator.”

Reduced asset protection allowance

Behind the scenes, a stealth change in the FAFSA has been quietly and negatively impacting families. The asset protection allowance, which lets parents shield a certain amount of their  assets from consideration (in addition to the assets listed above that are already shielded), has been steadily declining for years, resulting in higher EFCs. Fifteen years ago, the asset protection allowance for a 48-year-old married parent with a child about to enter college was $40,500. For 2020-2021, that same allowance is $6,000, resulting in a $1,946 decrease in a student’s aid eligibility ($40,500 – $6,000 x 5.64%). 3)

Higher student debt

Student loan debt continues to grow and student debt is now the  second-highest consumer debt category, ahead of both credit cards and auto loans and behind only mortgage debt. 4) About 65% of U.S. college seniors who graduated in 2018 had student debt, owing an average of $29,200. 5) And  it’s not just students who are borrowing.  Parents are borrowing, too. There are approximately 15 million student loan borrowers age 40 and older, and this demographic accounts for almost 40% of all student loan debt. 6)

1) College Board, 2019

2-3) U.S. Department of Education,  The EFC Formula, 2020-2021, 2005-2006

4) Federal Reserve Bank of New York, Quarterly Report on Household Debt and Credit, August 2018

5) Institute for College Access & Success, Student Debt and the Class of 2018, September 2019

6) Federal Reserve Bank of New York, Student Loan Data and Demographics, September 2018