Private colleges full of surprises … and aid: counterintuitive facts revealed in NAICU publication - Financial Aid Watch

University Business, May, 2003 by Nicole Rivard

The National Association of Independent Colleges and Universities' (www.naicu.edu) new publication, Twelve Facts That May Surprise You About America's Private Colleges and Universities, suggests that private schools offer a better tuition value than is commonly perceived.

According to the study, because tuition increases leveled off at private schools in the mid- and late '90s, and institutional grant aid increased substantially, inflation grew more rapidly than net tuition (the students' out-of-pocket cost, after grant aid is subtracted from a school's list price).

Here's how the study numbers play out: From 1991-92 to 2001-02, institutional aid rose 197 percent, more than double the 86 percent increase in tuition list price. From 1992-93 to 1999-2000, private college net tuition increased 17.3 percent, while the Consumer Price Index grew 18.7 percent. Taking inflation into account, net tuition dropped $100 during the 1990s.

For thousands of students who qualify for financial aid, average net tuition is 60 percent of average tuition. But the average net tuition for students in the lowest income quartile decreased by nearly 15 percent between 1995-96 and 1999-2000 after adjusting for inflation. The neediest students, then, paid on average 40 percent or less of published tuition prices.

The future financial aid picture is positive, too, says the study. For the current academic year, institutional aid for students at private colleges and universities rose 10 percent over the previous year, almost doubling the 5.8 (average) increase in private college tuition. Early reports on tuition increases for 2003-04 show little change in overall rate of increase.

Average net tuition (after all grant aid) at private
colleges and universities decreased slightly between
1992-1993 and 1999-2000 (adjusted for inflation)

1992-93     $9,000
1995-96     $8,700
1999-2000   $8,900

Average net tuition (after all grant aid) for
students in the lowest income quartile at private
colleges and universities has decreased since the
mid-1990s (adjusted for inflation)

1992-93     $4,700
1995-96     $5,500
1999-2000   $4,700

Sources: U.S. Department of Education, National Center for Education
Statistics, What Students Pay for College: Changes in Net Price of
College Attendance Between 1992-93 and 1999-2000 NPSAS: 1992-93,
NPSAS: 1995-96, and NPSAS: 1999-2000. Analysis by the National
Association of Independent Colleges and Universities.

Note: Table made from bar graph.