Lending Club Blog

College Costs Continue to Rise

We all know that the cost of college is going up, but it seems like everything is more expensive then it used to be. A recent report shows that college costs are rising faster then the costs of other goods and services.

The data for this post comes from the College Board’s report Trends in College Pricing 2007

Here are some of the increases in average tuition and fees reported:

    • Two-Year Public Colleges up 4.2% ($95) from a year ago
    • Four-Year Public Universities up 6.6% ($381) from a year ago
    • Four-Year Public Universities up 6.3% ($1,404) from a year ago

The US Bureau of Labor Statistic’s inflation calculator shows inflation at around 3.4% for the same period. Many students do benefit from financial aid and grants which reduce the actual cost paid, but even that cost is increasing at similar rates.

Net costs for tuition and fees increased as follows:

    • Two-Year Public Colleges up 6.7% ($20) from a year ago
    • Four-Year Public Universities up 6.6% ($160) from a year ago
    • Four-Year Public Universities up 4.6% ($630) from a year ago

With costs rising faster than inflation, the relative cost of college is going up. College savings plans, financial aid, and government loans may not be enough if you don’t start planning early. If you do have some time before your college expenses will begin, I highly recommend looking into a 529 College Savings Plan. If you have a more immediate need, then a P2P loan from Lending Club may be a more cost-effective solution than looking to the private sector for a student loan.

Friday, October 26th, 2007 at 6:39 am

Comments (1)

  1. Not only is the cost of college expensive but the very thought of
    attending can be costly as well. Parents pay a lot – in time and
    money – to visit college campuses and typically students only see a
    few of their choices before making the final decision. Today’s
    technology can help. CollegeWeekLive (
    http://www.collegeweeklive.com/dontfollow ) will give students the chance
    to visit with over 75 colleges from over 35 states. CollegeWeekLive
    is the first virtual college fair of its kind. Participating
    schools include Air Force Academy, Bentley, Central Connecticut
    State, Northeastern University, Tufts University, University of
    Buffalo, University of Texas and more. CollegeWeekLive will connect
    thousands of high school students with current college students,
    guidance counselors, admissions experts and more in a LIVE,
    interactive environment. Chat, visit booths, tour campus and more.
    Here’s the agenda:
    http://www.collegeweeklive.com/agenda.html/dontfollow Please join
    us November 13 & 14 http://www.collegeweeklive.com/dontfollow
    admission is free.

    October 26th, 2007 at 11:22 am

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