McCain v. Obama v. Clinton on College Tuition

As we approach the appointment of a front runner for each party, I thought it would be beneficial to see what the front-running candidates’ stances are on college tuition. John McCain still has no formal stance on tuition, but is reported to be in favor of some sort tax write off for the parents. Clinton wants to provide $500 million to community colleges and $250 million to four year universities. She also wants to replace the FFELP with 100% direct lending. And finally, she wants there to be a box to check for families on their income tax return rather than FAFSA. Obama also wants to replace FFELP with 100% direct lending. He also wants to eliminate FAFSA and provide a box for families to check for income tax return. One issue the candidates both have in common is that they want to either increase the Pell Grant with inflation or have it cap off at $10,000. The Pell Grant provides need-based funding for low income undergraduates. FinAid Article

Reasons for Tuition Hike?

According to a USNews article from a year ago, there are some explanations to why college tuition has/will/can increase. When tax payer money fails to fully subsidize tuition costs, the remainder is transfered to college students. The example the article gave is Pennsylvania State University received the same subsidy in 2006 as it had for the past five years. That lack of increase in funding meant a 5.6 increase in tuition that college students will have to pay back. Another explanation could be that it costs more to run a unviersit than it once did. For example, computer labs, new projection/ sound devices. Colleges, according to the article, have developed an inflation gauge called the “Higher Education Index.” Finally, schools are experiencing pressure (from students and parents) to update dorms, cafeterias, and workout facilities. USNews article

History Involved

In the last 30 years, the cost of attending a public university went from $655 in 1977 to $6,185 in 2007. According to a US News article, College Board-the non-profit organization that studies college figures-says that there is no significant reason for the increases in tuition above the cost of inflation. An explanation as given by the College Board chairman is that cost of living has increased sharply for students. “Cafeterias and dorms are nicer than they used to be,” said chairman Gaston Caperton. According to the article, parents shold budget at least $80,000 to get today’s freshman attending in-state public universities for four years straight. US News article (October 26, 2007).

Average costs

The figures for the previous year were startling. Average total tuition and fees at four-year colleges and universities in 2006-07 are $22,218, $1,238 (5.9 percent) higher than they were in 2005-06.  For the  2005-2006 school year at a private university, the average total for tuition, fees, room, and board were $30,367. Inflation alone didn’t account for the rising cost, leading many to wonder why it as approaching nearly 6 % for a four year public university for all costs associated with one year of schooling.