Colleges see a slowdown in tuition price increases

Thursday, October 24, 2013

Average sticker prices at the nation's four-year public universities rose 2.9% this year, the smallest annual increase in more than three decades, suggesting that the steeper increases over the past few years "did not signal a new era of accelerating prices," says a report out Wednesday.

Still, the smaller rates of increase this year — across public, private non-profit and for-profit colleges — are tempered by recent declines in federal grant aid, it says.

"This does not mean that college is suddenly more affordable," says economist Sandy Baum, co-author of Trends in Higher Education reports on tuition and financial aid, released by the non-profit College Board. "It does seem that the (upward tuition) spiral is moderating. Not turning around, not ending, but moderating."

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