HOW MUCH DOES COLLEGE COST AND HOW DOES IT RELATE TO STUDENT BORROWING? TUITION GROWTH AND BORROWING OVER THE PAST 30 YEARS

Abstract

The rising cost of college and graduate school is often cited as a cause of rising student loan borrowing. This paper analyzes long-term trends in tuition and student financing using data from the National Postsecondary Student Aid Study. While real top-line “sticker prices” have increased by 114 percent since 1993, after accounting for increases in financial aid and tax benefits, net tuition prices have not changed. Over the same period, student borrowing tripled. While certain groups, such as graduate students and affluent undergraduates, have faced higher prices, aggregate increases in borrowing are hard to explain by average changes in net tuition prices.