The economic turmoil of 2009 left many private colleges increasing school grants and scholarships to the prospective 2013 applicants. This was the response of many universities in an effort to keep students interested in paying the average $35,000 tuition cost of college, despite the grim economic conditions. However, since many indicators tell us that the US economy is finally rebounding, colleges across the country are cutting down on scholarship funding for prospective students.
Colleges are assuming that families will be more willing to shell out higher tuition costs than previously estimated. Aside from private colleges, public universities too are faced with higher tuition costs because tuition expenses go directly back to the state. States facing economic turmoil in recent years are looking for any way possible to generate money—an easy way of doing this is by bringing in more profit from state schools.
Since tuition costs largely cover the operating expenses for universities, schools rely heavily on high tuition costs and low scholarship funding to pay the bills. Since so many grants were offered to last year’s applicants, schools are raising tuition to make up for all of the scholarship funding lost in recent months. The incoming 2013 classes will also feel the pressure while tuition prices will most likely rise dramatically in their four years of enrollment.Source 1