Report Highlights. The average annual cost of tuition at a public college* is 40 times what it was in 1963; after adjusting for inflation, tuition has increased 312.4%.
- Tuition inflation has slowed in the 2020s, declining at a 3-year average annual rate of 1.90%.
- The cost of college tuition has increased 36.8% since 2010; adjusted for inflation, tuition has increased 0.92%.
- The cost of tuition at public colleges has increased 36.7% since 2010; adjusted for inflation, state tuition has increased 0.86%.
- The most extreme decade for college tuition inflation was the 1980s, when tuition prices increased 151.2%.
*In this report, college refers to a 4-year postsecondary program unless otherwise noted; public institution data always uses in-state tuition.
Related reports include Average Cost of College | Average Cost of a College Credit Hour | Average Cost of College by State | Average Cost of Private School | Average Cost of Community College
College Tuition Inflation
While tuition inflation** is not consistent, annual rates have generally trended downward over the last decade.
- In the last three (3) years, the average annual cost of tuition at a public 4-year college increases at an average annual rate of 3.21%.
- While public and private college tuition costs have grown at an average annual rate of 3.88% since 2010, the annual tuition inflation rate is 1.31%.
- Statistics indicate that the average tuition at all postsecondary institutions will increase 3.25% for the 2026-27 academic year.
- At all 4-year universities, public and private, tuition is projected to increase by an average of 2.28% for AY 2026-27.
- Tuition at public and private 2-year institutions (such as community colleges) is projected to increase by an average of 1.65% for AY 2026-27.
**In this context, tuition inflation refers to the cost of tuition adjusted to constant currency values.
| Academic Year | Unadjusted Tuition Growth | Tuition Inflation Rate |
|---|---|---|
| 2022-23 | 1.60% | -4.38% |
| 2021-22 | 2.37% | -4.48% |
| 2020-21 | 0.27% | -1.99% |
| 2019-20 | 1.49% | -0.07% |
| 2018-19 | 1.94% | -0.12% |
| 2017-18 | 2.63% | 0.37% |
| 2016-17 | 0.30% | -1.52% |
| 2015-16 | 2.75% | 2.06% |
| 2014-15 | 2.79% | 2.04% |
| 2013-14 | 2.99% | 1.41% |
| 2012-13 | 4.63% | 2.91% |
| 2011-12 | 8.15% | 5.08% |
| 2010-11 | 6.18% | 4.09% |
| 2009-10 | 6.41% | 5.39% |
| 2008-09 | 6.20% | 4.74% |
| 2007-08 | 4.89% | 1.14% |
| 2006-07 | 5.89% | 3.22% |
| 2005-06 | 6.45% | 2.55% |
| 2004-05 | 9.59% | 6.39% |
| 2003-04 | 13.36% | 10.93% |
| 2002-03 | 8.33% | 6.00% |
| 2001-02 | 6.70% | 4.85% |
| 2000-01 | 4.53% | 1.07% |
| 1999-2000† | 4.14% | 1.78% |
| 1995-96 | 8.56% | 5.50% |
| 1990-91 | 7.46% | 3.09% |
| 1985-86 | 10.39% | 5.47% |
| 1980-81 | 8.19% | -1.04% |
| 1975-76 | 6.61% | -0.27% |
| 1970-71 | 9.86% | 4.47% |
†Average annual growth between selected years.
Historical College Tuition Inflation
Tuition records prior to AY 1963-64 are limited, making it difficult to declare record highs or lows. The skyrocketing tuition growth of the 1980s is the record high among the data available, while the 2020s may be a time of record lows.
- The average annual cost of college tuition, public and private, is more than 32 times what it was in the 1963-64 academic year.
- After adjusting for currency inflation, college tuition has increased 229.8% since AY 1963-64.
- Public college tuition increased 141.3% in the 1980s.
- The average annual cost of 2-year college tuition, public and private, is 22.7 times what it was in AY 1963-64.
Private College Tuition Inflation
Most data about private college tuition are from nonprofit institutions, and virtually all data before 1990 come from nonprofits.
- In the last three (3) years, the average annual cost of tuition at a private college, nonprofit and for-profit, increased 2.48%.
- The cost of tuition at a private nonprofit college increased at an average annual rate of 2.40% over three (3) years.
- The average annual cost of private college tuition is nearly 35 times what it was in the 1963-64 academic year.
- After adjusting for currency inflation, private college tuition has increased 258.9% since AY 1963-64.
- Private college tuition increased 160.3% in the 1980s.
- While private college tuition costs have grown at an average annual rate of 3.75% since AY 2010-11, the annual tuition inflation rate is 1.18%.
- Private nonprofit college tuition costs have increased 44.5% since AY 2010-11; average tuition inflation totaled 6.63%.
Community College Tuition Inflation
In this context, community college refers to any public 2-year institution, including vocational and technical schools.
- Over the last three (3) years, the average annual cost of tuition at a community college has increased at an average annual rate of 2.14%.
- The average annual cost of community college tuition is over 37 times what it was in the 1963-64 academic year.
- After adjusting for currency inflation, community college tuition has increased 281.7% since AY 1963-64.
- Community college tuition increased 113.1% in the 1980s.
- While community college tuition costs have grown at an average annual rate of 3.30% since AY 2010-11, the annual tuition inflation rate is 0.74%.
Private 2-Year College Tuition Inflation
Information about for-profit private universities is limited.
- In the last three (3) years, the average annual cost of tuition at a private 2-year college increased at an average annual rate of 3.29%.
- Private 2-year college tuition increased 152% in the 1980s.
- While private 2-year college tuition costs have grown at an average annual rate of 2.05% since AY 2010-11, the annual tuition inflation rate at private 2-year colleges is -0.51%.
- Private nonprofit 2-year college tuition increased 6.02% in the last three (3) years; at private for-profit 2-year colleges, tuition increased 2.39%.
- While private nonprofit 2-year college tuition costs have grown at an average annual rate of 3.98% since AY 2010-11, the annual tuition inflation rate at private nonprofit colleges is 0.65%.
- At for-profit private 2-year colleges, tuition has increased 19.2% since AY 2010-11; average tuition inflation totaled -12.0%.
Graduate School Tuition Inflation
Tuition inflation for graduate school students mirrors undergraduate tuition inflation.
- Between AY 2018-19 and AY 2021-22, the average annual cost of tuition for graduate school increased at an average annual rate of 2.02%
- While graduate tuition costs have grown at an average annual rate of 2.88% since AY 2010-11, the annual tuition inflation rate is 0.47%.
- Statistics indicate that the average tuition for all graduate schools will increase 2.54% for the 2026-27 academic year.
- Tuition for public graduate programs is projected to increase by an average of 2.25% for AY 2026-27.
- Graduate school tuition at private institutions is projected to increase by an average of 2.76% for AY 2026-27.
- The average annual cost of graduate school tuition is nearly five (5) times what it was in AY 1989-90.
- After adjusting for currency inflation, graduate school tuition has increased 121.5% since AY 1989-90.
Analysis: Why College Tuition Increases
While no single cause is attributed as the primary reason college tuition keeps increasing, several possible explanations have been offered on the subject. Each of these ideas explain the rise in tuition as a result of an imbalance in market-driven economics.
- The Bennett Hypothesis
The more grant aid a college student and their family get, the more they are willing to pay for tuition; subsequently, this allows colleges to set higher rates of tuition. - The Golden Ticket Fallacy
Believing any college degree would result in improved future earnings results in college students doing less in-depth research on the cost of college, including tuition. - The Invisible Menu
The published prices of tuition do not include grant aid or discounts the student may receive. With the true cost of tuition obscured, colleges have trouble lowering prices to match their competition. - Oligopolistic Competition
For the majority of college students finding a college constrains them to their local geographic area. Without competition, the small number of local colleges in the area can keep tuition rates high. - Excessive Regulation
Regulation, accreditation, and federal subsidies make it difficult for innovative providers of higher education to emerge and offer the kind of competition the market needs to lower tuition prices.