The College Tuition Myth: It's Cheaper Than You Think

Despite widespread belief that college tuition is skyrocketing, data reveals a different story. Since 2014, public four-year college tuition has actually fallen by 21% in real terms, while private college tuition is down 12% after adjusting for inflation. This is due to a peculiar pricing strategy: universities set a high sticker price, then offer substantial financial aid to low-income students, effectively subsidizing their education. This creates a huge gap between the published cost and the net price, with the public fixating on the inflated sticker price. While sticker prices continue to rise, net prices are falling, thanks to increased federal Pell Grants, rebounding state appropriations, and colleges offering more aid. With the number of 18-year-olds peaking this year before a long decline, competition for students will intensify, likely pushing net tuition further down. However, public perception remains skewed, leading many to miss out on higher education and eroding confidence in the system.