Tuition and student debt continue to climb
Students throughout the United States are experiencing tuition hikes and increased student debt, but economist and certified public accountant Tyler Richardson published a video and book and said he believes the hikes are not for the reason many people think.
Richardson said students are sometimes convinced colleges are raising tuition to cover for cuts in government funding, but statistics from the U.S. Department of Education show a different side of the issue.
“Truth is colleges receive more money from the government now than ever before,” Richardson said.
In 2005 the average funds granted by state appropriations and PELL grants for the ten largest public universities in the U.S., IU placing tenth, was only $519 million. In 2015 those same contributions increased by 22 percent to $636 million.
Despite increased government funding to IU, data projections from the U.S. Department of Education expect tuition to increase over the next four years.
In 2016 the tuition at IU was about $37,676 for out-of-state students and $10,574 for in-state students. By 2020, out-of-state students will be paying approximately $4,015 more and even in-state students will be paying an added $781.
Student debt is also expected to increase. Average student loan debt for seniors graduating from IU in 2015 was $27,681, according to statistics compiled by the Institute for College Access and Success.
“Think your college will tell you how they’re spending your money?” Richardson asked. “Probably not.”