Ahmad Alssalem is a Pullman, Washington, high school senior headed to the University of Washington this fall. He’s interested in studying engineering — either bio or mechanical.
And like many high school seniors when it comes to selecting a college, Alssalem paid a lot of attention to the price tag.
“I honestly think that’s probably the biggest factor,” he said. “There wasn’t a lot of wiggle room in terms of, like, fighting a price tag for colleges, so it’s kind of, which colleges give you the most aid.”
College-related expenses like rent and groceries are increasing with inflation, making it difficult for some low- and moderate-income families to cover the costs. Federal cuts to university research funding and concerns about state budgets could also affect how much students pay in the coming months and years.
“I know everyone just thinks college prices keep rising and rising and rising, but in fact, sort of since the pandemic, they haven’t kept up with inflation for the most part,” said Sandy Baum, a higher education economist and a nonresident senior fellow at the Urban Institute.
“Certainly over, you know, the past 20 years, 30 years, college has gotten much more expensive, there's no question about it. But that’s not what’s been happening over the last, say, five years,” said Baum.
One reason tuition isn’t rising as fast as other expenses is because colleges and universities have better funding from states.
Another reason is inflation.
“When we had 7% inflation, colleges weren’t raising their prices by 7%. And so, inflation and the rest of [the] economy makes the real, inflation-adjusted increase in college prices smaller,” Baum said.
The costs that are increasing? Food and housing.
“It’s very difficult to go to school full time and work full time and so you need money to pay for food and housing,” Baum said. “Living expenses are increasingly a problem for students.”
A 2024 survey conducted by the Washington Student Achievement Council found that “one in four students experienced both food insecurity and housing insecurity.” The survey notes that’s over a 12% increase from 2022.
Depending on the college or university, Baum said the highest expense a student could have might vary.
“For students going to public colleges, living expenses are usually much more expensive than the tuition. If you’re going to a private non-profit college, it’s the other way around — if you look at the total budget, tuition is a larger share of it,” Baum said.
What a college degree is worth today
A 2024 Pew Research Center study found that “only one-in-four U.S. adults say it’s extremely or very important to have a four-year college degree in order to get a well-paying job in today’s economy.” And 29% of adults said the cost of college isn’t worth it.
“There’s a lot of skepticism about that value,” said Robert Kelchen, a professor of higher education at the University of Tennessee, Knoxville.
But Kelchen said there are long-term returns from getting a degree.
“Those benefits accrue over your lifetime, while the costs are up front … Do you trust the system enough to forgo income for several years and take on debt? When they say, ‘Trust us, you’ll see the benefits when you’re 50,’ that’s a tough sell,” Kelchen said.
Kelchen said while it somewhat matters what fields of study students pursue, college usually turns out to be a good investment — but an expensive one. Roughly 70% of students who earn a bachelor's degree take out at least some debt.
“We see students taking fewer classes to try to either avoid debt altogether, or limit the amount,” Kelchen said. “There is just that broader concern about affordability, and it is affecting choices that students are making.”
Kelchen said students should be talking to their high school guidance counselors and local community agencies. He said some scholarships are underused.
“We have a substantial share of students who would be eligible for, say, a Pell Grant. But they don’t fill out the FAFSA. They either don’t think they qualify, or they’re afraid of a form that has a history of being very complex,” Kelchen said.
While Kelchen noted the FAFSA is a simple form for a lot of students, he said it can become complicated if students have parents who live separately or who are undocumented immigrants.
This year, with federal cuts to university research funding and concerns about state budgets, Baum said there are some signs that increases in cost are possible.
Baum said President Trump’s budget bill could do a lot of damage to how students pay for college “ … both in terms of federal grant aid, in terms of student loan repayment programs, and of course in terms of taking money away from colleges so that they have less left over to help students.”
For students comparing colleges, Baum recommends talking to financial aid offices at colleges and universities — all of which are available at no cost.
