Page 59 - Crisis in Higher Education

Underlying Problem • 33

Each university provides estimates for these costs so applicants and
their families can prepare budgets and plans to secure funds for these
expenses. These estimates are also needed when students apply for fed-
eral financial aid. Even though many universities combine tuition and fee
when estimating costs, tuition and fees are separated here because they
have different purposes and uses.

2.2 TUITION COSTS
The cost of higher education, especially tuition, is rising much faster than
the rate of inflation. When President Lyndon Johnson signed the Higher
Education Act in 1965 to expand federal support, tuition and fees at public
universities for in-state residents were very low and in some cases zero.
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Until 1970, California residents paid zero tuition to attend public universi-
ties in pursuit of a four-year degree, although there were modest fees. In
1968, the fee climbed from $84 to $300 per year for state residents. For
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2014–2015, undergraduate, in-state tuition for schools in the University
5
of California system such as UCLA and UC Berkeley was $11,220. Many
states like Ohio had very low tuition. Ohio University charged no tuition
in the 1960s, although it did charge a comprehensive fee of about $200
per semester or about $400 per year for in-state students. By 2015–2016,
its tuition was about 11,500 per year. Tuition at the University of Toledo,
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which had municipal and state support, was $17 per semester hour in 1966,
so a full-time undergraduate student paid $255 per semester (15 credit
hours) or $510 per year plus $92 per year in fees for an annual total of
$602. In 2015–2016, its undergraduate tuition and fees were about $9,550
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per year. Tuition and fees for public universities in California increased
8
by about 3,600% since 1968. Tuition and fees at Ohio University and the
University of Toledo increased by about 2,800% and 1,500%, respectively.
During this period, the Consumer Price Index (CPI) climbed only 641%,
so what cost $1.00 in 1966 costs $7.41 in 2016. The University of Toledo,
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which has the lowest tuition and fees among the three, still grew at more
than twice the rate of inflation.
It is important to go beyond these anecdotal data points. Data from
The College Board’s Annual Survey show that published tuition and fees
at public, four-year universities, after adjusting for inflation, increased
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substantially from a baseline of 100 in 1985–1986 to 322 in 2015–2016.