State College Tuition Sticker Shock

Students: it Just Won’t Stop

State college tuitions are going up. So scream a disturbing number of news headlines. In Tennessee, the state community college system is boosting the tuition by a little over $130 dollars per person. Last year tuition within the state was raised, too, about 4 percent, in contrast to this newest increase of 6 percent. What are the major reasons for the hike? To “expand enrollment and educate more Tennesseans.” Are that many more students actually being educated, and at what price? The price is about 94 percent higher than it was just half a dozen years ago, argue residents. This shocking up-shot in state tuition is markedly out of step with workers’ wages and other quality of life metrics.

In Michigan, lawmakers have yet to balance their budget and right now it looks as though tuition will again go up. Governor Granholm rallies against the potential tuition crisis; she measures it against her term so far—it’s gone up “37-percent since she took office.”

New Hampshire is kicking up state college tuition, as well. Surprisingly enough, though, the biggest increase is being leveled at in-state students. State residents will pay 7 percent more for their state college education in 2008. Out of state students will only pay 5.2 percent more for their education. What do NH lawmakers contend are the primary reasons? First, money asked for from the government never panned out; a bigger state investment in low-income students has cost big; and then there are heady operating costs (maintenance, fuel for heating and cooling, and construction and repair materials).

Oklahoma is facing its own state tuition hike of over 8 percent (!). Critics of the hikes have leveled criticism at the state board of regents, which now governs the state higher education system. Some critics of the agency, claim things were better when the state legislature made the decisions.

While some of these tuition rises are typical, some critics fear the loss of middle-income students at state colleges, or an even bigger debt problem for new grads. Connecticut Governor, Jodi Rell, recently made a tough political decision—to deny state tuition to illegal immigrants. This move, a controversial one among Hispanic constituents, nevertheless was made with legal state residents in mind. Handing out discounted tuition to illegal students could cost the state millions, and in turn drive the cost of an affordable education too far afield for the average state resident.

To Do List: Get a 529 Savings Account

With all this talk about tuition hikes and no end in sight, maybe it’s advisable to renew chatter about the advantages to state-managed 529 College Savings Plans. These pre-tax savings accounts feature some very attractive incentives in over half the states that offer them. North Dakota just joined the ranks of those governments that will kick in $300 grants for low-income residents that open up 529 accounts.

Start saving early—who knows where states’ tuition could be in another decade or so. Click through the associated section of our site if you would like to find background information about your state’s scholarship, grant, and loan programs.

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