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Question of the Month

April 2007

How do Midwestern states compare in regard to tuition rates for public colleges/universities?

Nationwide, tuition and fees at public two- and four-year colleges and universities have increased faster than the rate of inflation over the past 25 years. Many states, hampered by tight budgets in recent years, have cut higher-education appropriations, leading campuses to increase tuition and mandatory fees. Consequently, families’ ability to afford college education for their children has been eroding. Further, the amount of aid available to those least able to pay for college has not kept pace with inflation or rising tuition rates.

Over the past several years, the cost of education at public universities and colleges in the Midwest has risen faster than in the nation as a whole, according to a report by the Midwestern Higher Education Compact (www.mhec.org). In 2001, tuition and fees at 20 select Midwestern public research institutions were 4.4 percent higher than the national average. By 2006, the gap had increased to 12.4 percent.

A similar trend has occurred among public comprehensive universities and two-year colleges. Average resident undergraduate tuition and fees at universities in the Midwest were 6.8 percent higher than the national average in 2001, with the gap rising to 11.6 percent by 2006. At two-year colleges, average tuition and fees in the Midwest were 15.3 percent higher than the average nationwide in 2001, with the difference growing to 17 percent by 2006.

One way of evaluating the impact of these trends is to measure the percentage of family income required to support one year of college attendance after accounting for scholarship and grant aid (excluding student loans). Looking at this measurement, the cost of higher education in the Midwest is lower than the national average.

For two-year institutions in the Midwest, 23.5 percent of the average annual family income was needed to support one year of attendance in 2006, compared with the national average of 24 percent.

Two-year colleges in Kansas were the most affordable in the region at 19.9 percent, followed closely by Nebraska (20.8 percent) and Wisconsin (20.9 percent), while colleges in Ohio were the most expensive (nearly 30 percent).

For four-year schools in the Midwest, 30.4 percent of average family income was needed for one year of attendance (the national average was 30.7 percent). Again, Ohio’s institutions were the region’s most expensive (42.2 percent), while the most affordable were in Minnesota (25.6 percent), Wisconsin (25.9 percent), Kansas (26.6 percent) and South Dakota (26.9 percent).

State

Cost (2006-'07)

Increase over last 5 years
Illinois $7,210 71.1%
Indiana $6,643 68.3%
Iowa $6,112 77.7%
Kansas $3,771 55.6%
Michigan $6,887 48.6%
Minnesota $5,656 58.8%
Nebraska $4,479 53.6%
North Dakota $4,882 67.8%
Ohio $8,007 58.3%
South Dakota $5,351 44.5%
Wisconsin $5,793 63.0%
Midwest average $5,793 60.2%
U.S. average $5,192 53.4%

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