According to CNNMoney.com, the College Board report stated that in-state tuition and fees at public universities rose 7.9 percent for the 2010 to 2011 school year over the prior academic year. As of 2011, many universities published annual tuition and fees of less than $9,000, with the College Board reporting that almost half of undergrads attend those universities. Approximately two-thirds of students receive federal grant aid, which along with federal tax benefits, averages $6,100 annually. Without financial aid, however, the average annual cost of a public university is $7,605 as of October 2010. Taking into account this financial assistance and the cost of room, board and inflation, the annual cost of attending a public university rose $600 between the 2005 and 2010 academic years.
Even though private universities are substantially more expensive than public, the tuition and fee costs did not increase at the rate of public institutions. At private four-year institutions, the average cost only rose 4.5 percent, creating an average annual cost of $27,293 as of October 2010. Overall, however, for the 2009 to 2010 and the 2010 to 2011 school years, annual tuition and fee increases were lower at private universities than at any time in the last 37 years.
Community and technical colleges have always been an affordable alternative to four-year universities. This being the case, however, decreases in state funding forced these types of colleges to raise their tuition for the school years 2007 through 2010, with additional annual increases expected. The average annual cost to attend as of 2010 was between $2,000 and $10,000, depending on the college. These two-year colleges experienced a 6 percent increase during the 2007 through 2009 school years with additional increases expected. Even with the larger percentage increase, community and technical colleges still have an average cost well below that of four-year universities.
Reputable online universities offer much more in the way of flexibility and savings in living expenses than in actual costs of tuition. Most online universities have an average cost that is comparable to that of actually attending a university, with the average cost being approximately $7,500 per semester. Many people don’t mind paying these fees for the flexibility of class scheduling which may allow the student to work a full-time job while acquiring a degree.