Working Paper

How Much Does College Cost and How Does It Relate to Student Borrowing? Tuition Growth and Borrowing over the Past 30 Years

Abstract: The rising cost of college and graduate school is often cited as a cause of rising student loan borrowing. This paper analyzes long-term trends in tuition and student financing using data from the National Postsecondary Student Aid Study. While real top-line “sticker prices” have increased 114 percent since 1993, after accounting for increases in financial aid and tax benefits net tuition prices have not changed. Over the same period, student borrowing tripled. While certain groups, like graduate students and affluent undergraduates, have faced higher prices, aggregate increases in borrowing are hard to explain by average changes in net tuition prices.

Keywords: student loans; college tuition; financial aid;

JEL Classification: I22; H52; D14;

https://doi.org/10.21799/frbp.wp.2024.16

Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Working Papers

Publication Date: 2024-09-03

Number: 24-16