50 b) Just how fast have higher education costs risen?

For the 2012–13 academic year, annual current dollar prices for undergraduate tuition, room, and board were estimated to be $15,022 at public institutions, $39,173 at private nonprofit institutions, and $23,158 at private for-profit institutions. Between 2002–03 and 2012–13, prices for undergraduate tuition, room, and board at public institutions rose 39 percent, and prices at private nonprofit institutions rose 27 percent, after adjustment for inflation. The price for undergraduate tuition, room, and board at private for-profit institutions decreased 7 percent between 2002–03 and 2012–13, after adjustment for inflation.
SOURCE: U.S. Department of Education, National Center for Education Statistics. (2015). Digest of Education Statistics, 2013 (NCES 2015-011), Chapter 3.
Average total tuition, fees, room and board rates charged for full-time undergraduate students in degree-granting institutions, by type and control of institution: Selected years, 1982–83 to 2012–13

Year and control
of institution Constant 2012–13 dollars1 Current dollars
All
institutions 4-year
institutions 2-year
institutions All
institutions 4-year
institutions 2-year
institutions
All institutions
1982–83 $9,138 $10,385 $6,396 $3,877 $4,406 $2,713
1992–93 12,097 14,216 6,830 7,452 8,758 4,207
2001–02 14,775 17,708 7,424 11,380 13,639 5,718
2002–03 15,262 18,344 7,943 12,014 14,439 6,252
2003–04 16,104 19,276 8,336 12,953 15,505 6,705
2004–05 16,647 19,925 8,563 13,793 16,510 7,095
2005–06 17,014 20,289 8,412 14,634 17,451 7,236
2006–07 17,547 20,934 8,461 15,483 18,471 7,466
2007–08 17,737 21,160 8,346 16,231 19,363 7,637
2008–09 18,421 21,996 8,879 17,092 20,409 8,238
2009–10 18,839 22,515 9,109 17,649 21,093 8,533
2010–11 19,355 23,118 9,323 18,497 22,092 8,909
2011–12 19,741 23,409 9,461 19,418 23,025 9,306
2012–13 20,234 23,872 9,574 20,234 23,872 9,574
Public institutions
1982–83 $6,941 $7,534 $5,632 $2,945 $3,196 $2,390
1992–93 8,731 9,772 6,166 5,379 6,020 3,799
2001–02 10,415 11,940 6,670 8,022 9,196 5,137
2002–03 10,800 12,434 7,116 8,502 9,787 5,601
2003–04 11,496 13,270 7,474 9,247 10,674 6,012
2004–05 11,905 13,790 7,694 9,864 11,426 6,375
2005–06 12,154 14,077 7,547 10,454 12,108 6,492
2006–07 12,522 14,503 7,723 11,049 12,797 6,815
2007–08 12,647 14,675 7,623 11,573 13,429 6,975
2008–09 13,209 15,371 8,156 12,256 14,262 7,568
2009–10 13,667 16,027 8,223 12,804 15,014 7,703
2010–11 14,194 16,657 8,460 13,564 15,918 8,085
2011–12 14,616 17,084 8,715 14,377 16,805 8,572
2012–13 15,022 17,474 8,928 15,022 17,474 8,928

If we just focus on public, four year, schools for the 30 year period from 1983 to 2013 we see that the annual cost of this form of higher education has risen at an average annual rate of almost 7%, compared to the overall average rate of inflation, during that same period of just under 3%. This is another area, like the cost of health care, which has risen at unjustifiable rates! The reasons for this were discussed in last week’s posting.