Average cost of college

The cost of college in the U.S. has nearly tripled over the last four decades — and things don’t seem to be slowing down, especially now that sky-high inflation is making everything more expensive.

For the 2022-23 academic year, the average cost of tuition and fees for public four-year schools came out to $10,940 for in-state students and $28,240 for out-of-state students, according to the latest data from College Board. Private nonprofit four-year schools amassed a much higher $39,400 average. Add room and board, books and other expenses to the mix, and that bill goes up several thousand dollars more.

Here’s everything you need to know about college costs, including how much tuition has changed over the years and trends that have contributed to these ever-rising costs.

Average cost of college

The average cost of college in the U.S. depends on the type of college you attend and where you attend. Out-of-state students pay much more than in-state students because nonresident students don’t pay taxes to the state where they attend school.

Private colleges are usually the most expensive option because public schools receive funding from the federal government, whereas private colleges receive most of their funding through tuition costs and private donations.

The average cost of college also differs by degree level. A bachelor’s degree costs much less annually than a doctoral degree, though remember that most advanced degrees take only one to two years to complete, while a bachelor’s degree generally takes four years.

Average cost of college by school sector, 2022-23

Source: College Board

Average cost of college by classification, 2022-23

Source: College Board

Cost of college for undocumented students

Undocumented students face additional challenges when it comes to financing a college education. Undocumented students — including Deferred Action for Childhood Arrivals (DACA) recipients — aren’t currently eligible to receive federal financial aid. While the Biden administration proposed allowing DACA recipients to receive federal aid opportunities, nothing has been announced by the administration about signing this into law.

Undocumented students are lawfully entitled to a K-12 public education, regardless of state. However, this law doesn’t extend to higher education, and each state has different provisions regarding undocumented students and their ability to attend public schools or receive state aid. Here’s a breakdown of what states allow in regards to postsecondary financial aid, according to the Higher Ed Immigration Portal:

• There are 23 states that allow in-state tuition for undocumented students: California, Colorado, Connecticut, Florida, Hawaii, Kentucky, Virginia, Illinois, Kansas, Maryland, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, Oklahoma, Oregon, Rhode Island, Texas, Utah, Washington and Washington, D.C.
• Nineteen states allow undocumented students to receive state financial aid: California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Oklahoma, Utah, Rhode Island, Virginia, Texas, Washington and Washington, D.C.
• Ten states prohibit in-state tuition and/or state financial aid for undocumented students: Alabama, Arizona, Georgia, Indiana, Missouri, New Hampshire, North Carolina, Ohio, South Carolina and Wisconsin.
• Three states prohibit undocumented students from enrolling at public institutions: Alabama, Georgia and South Carolina.

Cost of college over time

College tuition costs have been steadily increasing over time, which student loan lender Earnest attributes to recruitment costs, capital improvements, administrative staff expansion, higher staff salaries and more.

College tuition inflation has been rising steadily since the 1980s. With an average annual inflation of eight percent per year since then, tuition inflation has consistently outpaced overall inflation in the economy.

Average undergraduate tuition and fees in 2022 dollars

Source: College Board

Average cost of college by state

The average cost of public universities and colleges varies by state. The size of the state, the population and the number of colleges in each state are all factors that impact the average cost of college.

Average cost of undergraduate college tuition and fees by state, 2020-21

Source: National Center for Education Statistics

Average cost of college by university

The school that you attend is the biggest factor in determining how much student loan debt you could end up with. Generally, the more prestigious and well-known the university, the more expensive it will be.

Average cost of college at America’s most well-known universities, 2023-24

Average cost of college at America’s flagship universities, 2022-23

Average financial aid

College Board found that undergraduate and graduate students received $234.6 billion in grants, work-study, federal student loans and federal tax credits in the 2021-22 school year. On average, graduate students take out larger federal loans than undergraduate students, while undergraduate students receive more grant aid and tax credits. The average financial aid below does not include private scholarships or private student loans, which can also cut down the cost of college significantly.

Average financial aid per student, 2021-22

Source: College Board

The bottom line

The Education Data Initiative reports that while the cost of college has shot up in recent decades, but the last couple of academic years have seen a slight decrease in tuition costs when adjusted for currency inflation. If you are preparing to attend school, research what grants and scholarships may be available to help you offset costs.