College Costs Outpace Inflation

The average four-year private college raised its tuition an average of 5.2 percent last year, close to double the increase at Harvard, according to a College Board study released Monday.

The average increase also outpaced last year's inflation rate of 3.5 percent, continuing a historical trend.

Across the board tuition increases at four-year public, four-year private and two-year private institutions were 5.2 percent, 4.4 percent and 7.0 percent, respectively. Only the 3.4 percent increase in tuition at two-year public institutions was below inflation.

At Harvard, fees rose by only 2.9 percent.

"Harvard's college costs have been held down," said Associate Dean for Finance Cheryl Hoffman. [HUH?} "They are less than the Consumer Price Index and less than inflation while are scholarship awards are increasing at a higher rate."

Hoffman said that rising operating costs--including technology upgrades--are a significant reason why tuition costs have risen throughout the higher education industry.

"Renovations, maintenance and renewal are a huge part of the cost," she said. "The labor market, which has been tight in many parts of the nation, is another factor. Other colleges may not have as strong as an endowment as Harvard."

Other factors, including renovations, maintenance, and rising wages due to a tight labor market have contributed to the rise at many schools.

In addition, Harvard's now $19 billion endowment allows the University to rely less heavily on the tuition it receives.

Harvard depends on its large endowment and other financial sources to keep fee increases low for undergraduates.

Assistant Dean of Admissions and Financial Aid Marlyn McGrath Lewis '70-'73 said, "We are determined to keep Harvard affordable to everyone, and our very generous financial aid program is a key element in that.

This fact has not escaped higher education industry observers.

Harvard's enormous endowment wealth makes it atypical of most private colleges, said Ron Ehrenberg, director of the Cornell Higher Education Research Institute.

Elsewhere, he said, college cost increases have been and will continue to outpace the rate of inflation.

Ehrenberg said private institutions that rely on tuition as their main source of revenue need to increase costs above inflation to maintain school programs, keep class sizes constant and provide faculty salary bonuses.

"All colleges are in a spending race to attract students," he said.

In the public sector, he said, reduced public support and state funding for higher education lead to large fee hikes.

"The tuition increases for public colleges are an attempt to make up for the failure of state appropriations to allow for growth and still remain competitive," Ehrenberg said.

Despite the constant tuition rises, College Board President Gaston Caperton said in a press release that most Americans should still be able to meet the financial demands of a college education.

Amid rising tuition costs, there have been increases in the amount of financial aid offered to students in the form of loans and grants.

According to the College Board, a record $68 billion in aid was available last year.