Archived Information

Why Students Pay Different Amounts to Attend College

What students and their families pay to attend college depends upon two main groups of factors: differences among colleges, and differences among students and their families.²

Differences among Colleges

In this handbook, colleges are grouped according to key factors that affect the tuition they charge and the financial aid they give out. These factors are described below.

Public or private. Public colleges--those supported by state and local governments--typically charge less than private colleges. On the other hand, many private colleges have relatively more money to help students who can't afford the higher tuition.

Two-year or four-year. There is generally a big difference between the price of 2-year and 4-year colleges. Public 2-year colleges (community colleges) are usually less expensive. This price difference has prompted many students to begin at less expensive community colleges, then move to a 4-year college, if they want to complete a 4-year degree (bachelor's degree). A few students attend private 2-year colleges, but they are not discussed in this handbook. We do not discuss private 2-year colleges due to the relatively small number of students attending and the large differences in price and financial aid policy among private 2-year colleges.

Higher-priced or lower-priced states. Among public 4-year colleges, it is important to account for tuition differences across states. States differ in the amount they charge to attend their public colleges. There are also differences across states in the amount of student aid they offer. Some states keep tuitions high, but make up for it by providing more aid to their students. That is why what you might pay to attend a public 4-year college will depend on what state you live in.

State Initiatives

Many states have responded to recent increases in the price of college by establishing new or expanding existing state scholarships, college savings-trusts, and prepaid tuition programs. Many new state scholarships are merit based, rewarding high academic achievement during high school and/or linking continued support to maintaining good grades in college.

SOURCE: The Chronicle of Higher Education, April 16, 1999.

At the beginning of 1999, 20 states offered prepaid tuition plans that provide protection from future tuition increases. Here's how this works: families can pay for college ahead of time, even many years in advance. In return the college locks in the current tuition that they charge. Most of the states that do not have prepaid programs do have established savings-trust programs that enable people to invest (often with accompanying tax breaks) in state-operated investment funds. Only Massachusetts had both a prepayment and savings-trust program in early 1999, but many states were debating one or the other at the time this handbook was written.

SOURCE: The Chronicle of Higher Education, February 19, 1999.

**Public 4-year colleges lower-, medium-, and higher-priced states**
Lower-priced	Medium-priced	Higher-priced
Arizona Arkansas District of Columbia Florida Georgia Hawaii Idaho Kentucky Louisiana New Mexico North Carolina Oklahoma Tennessee Texas West Virginia Wyoming	Alabama Alaska California Colorado Illinois Indiana Iowa Kansas Minnesota Mississippi Missouri Montana Nebraska New York North Dakota Oregon South Dakota Utah Washington Wisconsin	Connecticut Delaware Maine Maryland Massachusetts Michigan New Hampshire New Jersey Nevada Ohio Pennsylvania Rhode Island South Carolina Vermont Virginia

The above table groups states based on their average tuition and size of their student aid programs.³ The public tuition groupings that we use are based on the 1995-96 school year. The three categories that we use throughout this handbook are: lower priced--less than $2,100; medium priced--between $2,100-3,100; and higher priced--over $3,100.