Several US universities have announced they will waive tuition fees for those eligible in the Fall of this year. These announcements coincide with slowly declining tuition rates across the country.
The average student in an in-state public university pays $11,610 in tuition. Accounting for inflation, this is 4% lower than a decade ago. After factoring in financial aid, tuition costs have decreased by 40%, from $4,140 to $2,480. The reduced cost of tuition has led to a decrease in students taking out loans. Less than half of students attending in-state institutions graduate with debt. The decrease in students graduating with debt is 59% in the last decade.
Private colleges have still seen rises in tuition costs. However, the increase in cost has come at a much slower rate at 4% in the last decade. The average tuition cost at a private institution is $43,350. While private tuition is high and costs increase, two decades prior they increased by 68%. The US Department of Education attributes the price increase to less aid from the federal government, maintenance of facilities, and less endowment.
The University of Texas (UT) announced it will waive tuition fees for Texas residents from families earning $100,000 or less. This tuition waiver will take effect in the Fall of 2025 and applies to in-state residents attending any University of Texas institution. “The Texas Advance Commitment is our promise to help make a UT Austin education a reality.”
The Massachusetts Institute of Technology (MIT) will offer free tuition to those from families earning under $200,000. This tuition waiver will also take effect in the Fall of 2025. “MIT is one of nine universities that is need-based and full need for all students – domestic and international.” Full need refers to how MIT meets 100% of a family’s demonstrated needs. The demonstrated need may include scholarships, grants, and student employment.
Many other institutions in the US have similar programs. The University of Michigan and the University of Massachusetts Boston waive tuition for in-state students from families earning less than $75,000.
Many factors account for tuition costs. Public universities are likely to lower their tuition rates when state governments increase funding for public education. Tuition-free initiatives, like those implemented at the University of Texas and MIT, could become a trend if large universities follow suit. Universities facing low enrollment may lower tuition and offer more financial aid to attract students.
Major US Regional Tuition Exchange and Reciprocity Programs. These are programs that provide scholarships for out-of-state students.
Public university tuition increases come from the opposite actions of decreasing tuition. Less funding for public education leads to higher tuition rates. Universities, both public and private, need to pay for maintenance costs, professor salaries, and specialized programs. Private schools rely on tuition to cover costs as they do not receive money from the federal government. Low enrollments at private schools may still lead to tuition increases to maintain financial growth.
Currently, President Trump has threatened to pull federal funding from public universities over protests. “All federal funding will STOP for any college, school, or university that allows illegal protests,” President Trump announced on Truth Social. Alongside threats to dismantle the Department of Education, public universities are likely to face financial trouble if President Trump’s threats are substantial. Scholarships and programs such as FASFA are also affected by federal funding.
Tuition rates are expected to climb once more in the next decade. Tuition costs have continued to outpace inflation regardless of slight decreases. As concerns grow over hiking tuition, policymakers may face increased pressure to enact policies to lower tuition costs.
