Tuition at Public Colleges and Universities: Policy Trends and Projections

Context
The advent of summer brings a renewed round of tuition setting for public colleges and universities nationwide. This year’s round takes place against the backdrop of continued strength in states’ finances translating into further moderation in tuition/fee increases for students and their families. At the same time, upward price pressures on salaries and infrastructure are acting as a counterweight against more softening in rate hikes. Additionally, state policymakers face a growing list of demands for their budget surpluses meaning that higher education leaders must keep their funding expectations in check.

Even with the improved fiscal situation, campus and system leaders, legislators, and governors are viewing tuition and fee policies with ongoing concern and continue to explore policy alternatives to contain rate increases and leverage pricing policies to achieve student access and success. The rising prominence of this issue stems in part from long-standing concerns over state and national competitiveness, but also from political considerations, as college costs and prices are quickly becoming a key “checkbook issue” for middle-class voters. All of this points to a window of opportunity for campuses and systems to review or revise policy and to take steps on the funding front that will make short- and long-term improvements regarding predictability and stability in pricing. That window may not be open for long, though, and policymakers must be prepared to move quickly—and thoughtfully.