College Tuition Inflation Statistics

Y2K fashion may be back in style, but the tuition prices of 20 years ago are long gone. In 2000, the average annual tuition at a four-year public college was less than $4,000. Today, it's $9,600.^{Note Reference [1]}

In recent years, tuition inflation has slowed somewhat, but tuition prices keep climbing. The cost of college makes a difference in who can access higher education and how much student loan debt individuals take on.

This report uses data from the National Center for Education Statistics (NCES) to track tuition inflation — that is, how much tuition prices have increased over the years. We'll also compare the rising cost of college to market, housing, and income inflation.

How Much Has College Tuition Increased?

NCES records the average tuition at all degree-granting institutions. According to NCES, the annual tuition rate increase at four-year colleges has stayed under 3% at public colleges in recent years. It's generally been higher at private schools.

College tuition inflation basically paused in the 2020-2021 school year, but it ticked up again in 2021-2022.

College Tuition Inflation Vs. Other Cost Inflation

In the past 20 years, college tuition and fees have grown twice as fast as the consumer price index (CPI) — a measure of what people pay for market goods like food and gas and a proxy for inflation. CPI inflation was nearly 54% from September 2001-September 2021.^{Note Reference [2]} Tuition inflation was 66%.^{Note Reference [1]}

Since 2000, college tuition has also grown more than the median household income and home price.

For most of the past several years, college tuition has increased faster than inflation. That has only changed recently.

Even accounting for inflation by measuring in 2021-2022 constant dollars, the average tuition at four-year colleges rose 62% at public schools and 32% at private schools between 2001 and 2021.

Which Decade Saw the Highest College Tuition Inflation?

Compared to other decades, the 1980s saw the highest tuition hikes. During this decade, tuition and fees rose an average of 9.7% per year at four-year schools and 8.4% each year at two-year schools.

College Tuition Inflation Rate Over Time

While tuition prices have soared over the past 20 years, tuition inflation has generally decreased. In other words, tuition is rising slower than it used to.

According to data from NCES^{Note Reference [1]}:

• The average tuition and fees at public four-year colleges and universities rose 13.4% in 2003. It rose 2.4% in 2021.
• The average tuition and fees at public two-year colleges rose 14.8% in 2003 and just 1.7% in 2020.

Over the past twenty years, tuition inflation has been slightly higher at public colleges and universities than at private ones. It has also been higher at four-year schools than at two-year schools.^{Note Reference [1]}

• On average, from 2001-2021, tuition and fees rose 5% a year at public four-year colleges and 3.8% a year at private four-year colleges.
• In the same period, the average tuition inflation rate was 4.8% per year at public two-year colleges and 3% at private two-year colleges.