People in the U.S. often complain about the growing costs of college. However, here’s a surprising fact: The average in-state student at a public university now only pays $2,480 annually in net tuition and fees.

While tuition is a significant part of college expenses, room and board can be more expensive. Yet, when adjusted for inflation, the total cost of attending a public college has been decreasing.

According to a recent report from the College Board, the net cost of tuition and fees for in-state students at four-year public colleges has dropped by 40% over the last ten years (after adjusting for inflation), from $4,140 in the 2014-15 school year to an expected $2,480 in 2024-25.

“The idea that college costs are skyrocketing is misleading,” stated Mark Becker, president of the Association of Public and Land-grant Universities. “The data from the College Board supports this claim.”

The reported figures reflect the average net price of tuition and fees for first-time students, taking into account grants, scholarships, and other financial assistance, while also adjusting for inflation.

(The College Board includes financial aid and inflation to illustrate actual price changes over time. When ignoring both inflation and aid, other reports indicate that college tuition is slightly rising.)

Moreover, the overall cost to attend a public university is also declining, but at a slower rate. The net cost for in-state students, which includes tuition, room, board, and other fees, has decreased from $23,050 in 2014 to $20,780 in 2024, accounting for grants and inflation. Room and board significantly contribute to an in-state student’s total annual costs.

Tuition Prices Are Dropping Nationwide

Prices in the higher education sector are decreasing as schools respond to falling enrollment numbers and budget-conscious students, according to finance experts.

However, the narrative of declining college prices seldom makes headlines. Media outlets are quick to highlight lists of the most expensive institutions, charging upwards of $70,000 annually or exceeding $400,000 total over four years.

These figures often represent “sticker” prices, and studies show that most students do not end up paying these amounts. Many elite colleges promise to meet the financial needs of every admitted student, and institutions frequently provide discounts to attract qualified candidates.

Even at private nonprofit universities, average tuition and fees have fallen from $18,680 in 2014 to an estimated $16,510 in 2024, factoring in inflation and aid.

At public two-year colleges, net tuition has actually become negative. On average, in 2024, students receive enough financial aid to fully cover their tuition and fees, leaving them with $710 for additional expenses.

These statistics are drawn from the College Board’s annual report on Trends in College Pricing and Student Aid.

The Declining Sticker Price of College

The reduction in public college costs is attributed to two favorable economic trends, according to the College Board.

Specifically, the sticker price for educational institutions is decreasing. The average tuition and fees for in-state students at four-year public colleges were $11,610 in 2024, down from a high of $12,830 in 2019, adjusted for inflation.

In 2024, public flagship universities in 45 states charge less than they did in 2019, after considering inflation.

Additionally, student aid is increasing. Grant aid per student grew from $8,000 in 2014 to $9,130 in 2024 for in-state students at public four-year colleges when adjusted for inflation.

The total amount of financial aid provided by colleges and state governments has also risen over the past decade, according to the College Board.

Approximately half of students at public universities graduated without any debt in the 2022-23 academic year, a notable increase from about 40% ten years earlier.

“State governments have started reinvesting in higher education over the past decade,” following significant cuts during the Great Recession, noted Nicholas Hillman, a professor specializing in higher education finance at the University of Wisconsin-Madison.

Public Perception of College Tuition

Only 9% of people anticipate a decline in college tuition, based on the latest survey results from the Federal Reserve Bank of New York.

While public perception isn’t completely off base, college tuition is slowly rising across much of the country; however, inflation is increasing at a quicker pace.

According to an analysis by the Chronicle of Higher Education, out-of-pocket tuition expenses for American families have grown by under 9% since 2019. In contrast, general price levels have surged by over 22%.

Jason Delisle, a nonresident senior fellow at the Center on Education Data and Policy at the Urban Institute, noted that public skepticism has encouraged many colleges to limit tuition hikes.

“People are more sensitive to prices. They are reconsidering if they should attend college,” Delisle mentioned. “They’re also weighing the possibility of incurring debt.”

College enrollment has been declining for ten years, though there are indications of a recovery. The reduced number of students forces colleges to compete on pricing.

Colleges ‘are not in the driver’s seat’

According to Delisle, colleges currently operate in a “buyer’s market.” “They don’t hold the power,” he explained.

The pricing structure for college tuition is intricate, and admissions officers find it challenging to clarify the costs for prospective students and their families, as experts in higher education highlight.

In many cases, colleges set tuition fees based on a student’s financial capability. The advertised tuition is just a baseline. Different students effectively pay different amounts, a concept that can be elusive to comprehend through standard college website pricing.

“There isn’t a consistent price that everyone pays,” Hillman remarked, “just like the pricing on an airplane.”

Tuition prices also greatly differ across states. Florida is the most affordable state, according to the College Board, with an average published tuition and fees for in-state students amounting to $6,360. On the other end, Vermont has the highest cost at an average of $17,490.

Interestingly, nearly every state charges less in 2024 compared to 2019, after accounting for inflation. Public universities subsidize in-state students, which leads to higher fees for out-of-state students. Typically, out-of-state students pay about $30,000 more.

“It’s difficult to make a generalization about all 50 states,” Becker noted. “But when considering the national landscape, there has been a greater investment in higher education overall.”