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Rising College Costs: Large Cuts in State Funding Pushing Tuition Higher
Aired October 22, 2003 - 06:18 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little 'Business Buzz' right now. Expect your wallet to get a lot thinner as you or your children head for college.
Carrie Lee is at the Nasdaq market site in Times Square to tell us about what all parents know, the rising costs of college education.
Good morning.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Carol, already an expensive endeavor for parents and students and getting more so every year. Public universities raised tuition by 14 percent. That's the steepest increase in at least a quarter of a century. This according to the latest annual survey from the College Board. Community college rates also went up by 14 percent, and that's the second largest increase since 1976.
Now when you adjust both of these figures for inflation, still, we're talking about a 13 percent rate hike here. The increases were largely driven by cuts in state spending on education. Still, private universities also raised tuition by 6 percent, not such an unusual increase. In fact, over the past couple of years this was the third consecutive year that private universities raised tuition by at least 5 percent.
Just a quick recap here on the average costs per year, $4,600 is the average for public universities, $1,900 at community colleges, $19,700 at private colleges. Those are the average costs for 2003. So certainly something on a lot of parents' and students' minds these days.
COSTELLO: Nineteen thousand dollars. You know,...
LEE: That is the average.
COSTELLO: ... it's funny,...
LEE: So you know some are more than that.
COSTELLO: ... I read an article the other day that a lot of universities are building like spas for the students and you know really posh residential units for the unit -- for the students.
LEE: Yes.
COSTELLO: And it's because they have to justify those huge costs to attract students to go.
LEE: It's sort of a double-edged sword, exactly. You want students to come, you want them to want to go to your school but somebody has to pay for it. And guess who often does, exactly.
COSTELLO: Yes, poor parents out there. We feel sorry for you.
Thank you.
LEE: I know. OK.
COSTELLO: Carrie Lee reporting live from the Nasdaq market site.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Tuition Higher>
Aired October 22, 2003 - 06:18 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little 'Business Buzz' right now. Expect your wallet to get a lot thinner as you or your children head for college.
Carrie Lee is at the Nasdaq market site in Times Square to tell us about what all parents know, the rising costs of college education.
Good morning.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Carol, already an expensive endeavor for parents and students and getting more so every year. Public universities raised tuition by 14 percent. That's the steepest increase in at least a quarter of a century. This according to the latest annual survey from the College Board. Community college rates also went up by 14 percent, and that's the second largest increase since 1976.
Now when you adjust both of these figures for inflation, still, we're talking about a 13 percent rate hike here. The increases were largely driven by cuts in state spending on education. Still, private universities also raised tuition by 6 percent, not such an unusual increase. In fact, over the past couple of years this was the third consecutive year that private universities raised tuition by at least 5 percent.
Just a quick recap here on the average costs per year, $4,600 is the average for public universities, $1,900 at community colleges, $19,700 at private colleges. Those are the average costs for 2003. So certainly something on a lot of parents' and students' minds these days.
COSTELLO: Nineteen thousand dollars. You know,...
LEE: That is the average.
COSTELLO: ... it's funny,...
LEE: So you know some are more than that.
COSTELLO: ... I read an article the other day that a lot of universities are building like spas for the students and you know really posh residential units for the unit -- for the students.
LEE: Yes.
COSTELLO: And it's because they have to justify those huge costs to attract students to go.
LEE: It's sort of a double-edged sword, exactly. You want students to come, you want them to want to go to your school but somebody has to pay for it. And guess who often does, exactly.
COSTELLO: Yes, poor parents out there. We feel sorry for you.
Thank you.
LEE: I know. OK.
COSTELLO: Carrie Lee reporting live from the Nasdaq market site.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Tuition Higher>
