But the decline in average net prices might mask different trends depending on income. Whose prices fell? Net prices depend on a family’s financial situation, so it is useful to show how trends in net prices have varied by family income.
This report provides an update to previous studies I have conducted that document trends in net prices at four-year colleges and universities for families with different incomes. I collected pricing data from publicly available net price calculators that all colleges and universities are mandated to operate by federal legislation. I also use proprietary data from MyinTuition, a nonprofit organization of which I am the founder and CEO. This year’s update continues to show that net prices are either stable or declining for all income levels other than the top income category. Even for that group, adjusting for inflation, net prices today are less than they were in the late 2010s.
Despite having the highest sticker prices, private institutions with very large endowments are the least expensive option for low-income students who are admitted and enroll. Net prices charged to those students at these institutions are in the vicinity of $5,000 per year. That amount typically is based on anticipated student earnings during the summer and school year through work-study funding with no expectation of payments from parents. The wealth available at these institutions enables them to use their resources to maintain these lower prices for lower-income students. The relatively small number of lower-income students who enroll in these highly selective wealthy institutions, though, is often a cause for concern.