The College Board released new data this week on "Trends in College Pricing
" for 2010, and reported that four-year public universities raised tuition this year by 8%, almost twice the 4.5% average increase for tuition at America's private universities. That differential follows a well-established pattern over the last decade of higher tuition increases at America's public universities than at private schools (see the chart above). Public university tuition has increased faster than private tuition in each of the last four years, and in eight out of the last nine years, by an average of 3% per year. As the chart above shows, the trajectory of college tuition in the U.S. is on a path that makes the recent housing bubble seem like a minor historical footnote by comparison.
"The good news in the 2010 “Trends in College Pricing” and “Trends in Student Aid” reports is that fast-rising tuition costs have been accompanied by a huge increase in financial aid, which helped keep down the actual amount students and families pay."
The New York Daily News does a much better job of reporting the true causal relationship in an editorial that could be titled "As College Financial Aid Climbs, Tuition Follows