The following guest editorial by managing partner Jim Dunlop appeared in the August 23, 2025 edition of PennLive. Subscribers can view the published article here. If you’re not a subscriber, click here to download the published edition.
It’s back-to-school season, and as many students begin their final years of high school or first semesters at college, their families may be feeling a familiar worry: Can we afford the tuition? September is College Savings Month, and while the common perception may be that college tuition costs are rising, the real story should put parents and students more at ease, especially if you’re considering attending private, nonprofit colleges.
While it’s true that the “sticker price” of college tuition has increased, the actual costs families pay to attend private, nonprofit institutions have declined over the past decade.
According to U.S. News & World Report, the published tuition and fees at private national universities have jumped nearly 126 percent over the past 20 years1. However, according to a 2024 College Bound report2, after accounting for inflation, the average net price for tuition and fees for full-time undergraduate students at four-year, private, nonprofit colleges decreased from approximately $19,330 per year in 2006-2007 to $16,510 in 2024-2025.
This means that after grants, scholarships, and other forms of financial aid are taken into account, students are actually paying more than 15 percent less out-of-pocket for their higher education today than they did nearly 20 years ago, and we expect this trend to continue. This reality puts private colleges within reach for far more families.
What’s behind this shift? Demographics and the changing job market. With more high school graduates choosing alternative career paths, like trade schools and apprenticeships, there are fewer college-bound seniors. And that leaves colleges with more empty beds and chairs to fill.
This surplus has led to more generous financial aid and scholarship offers. Think of it as a buyer’s market; many private colleges (as well as many public institutions) have more empty places than students to fill them, which leaves families in a position to benefit when it comes to lower tuition costs and financial aid.
We experienced this in my own family recently as my daughter prepares for her first semester at college. After the scholarships she received, our actual costs for her freshman year will be 50 percent less than the school’s advertised tuition rate.
As a wealth advisor, I am used to having conversations with families who are feeling overwhelmed and fearful about the thought of saving enough for college. My simple message to them is this: it may not be as hard as you think.
I believe the perception that tuition is becoming more expensive is false. The data show your family is in a better position than you were 10 or 20 years ago to map out a realistic, affordable path to a college education. Encourage your children to be proactive in applying for scholarships and financial aid, and don’t be afraid to share your concerns about the affordability of tuition with your college’s financial office. Most schools are willing to work with families—especially if their financial circumstances are changing.
1 Source: US News: A Look at 20 Years of Tuition Costs at National Universities
2 Source: College Bound Trends in College Pricing 2024 Report
