How Much Does College Cost in the US?

The average cost of college has increased year over year in the last two decades. According to the National Center for Education Statistics, the average American spent $25,910 annually in 2021 for undergraduate tuition and other costs like room and board. However, it's essential to note that the amount you spend varies depending on the type of institution you attend. The average cost of college for public institutions for the 2020-2021 school year was $19,374 annually. Meanwhile, you'll spend significantly more to attend a private institution — an average of $45,920 annually for the same period. Understanding the overall cost of college can help you financially prepare for your education.

It's never too early to think about how to pay for college. After all, the average cost of college has risen since the 2000s. It can strain the finances of an individual or family without ample preparation.

An excellent starting point is seeing how much college costs have changed since 2000. It includes all items that require spending, such as tuition fees and room and board. The figures below include the yearly average cost of both two-year and four-year programs.

Looking at how college costs have changed over the last 20 years, the upward trend is undeniable. The Class of 2004 spent an average of $17,186, but it increased to $25,784 for the Class of 2022 — a 50% increase. Interestingly, although average college costs continued to grow, it happened at a slower and slower pace through the years:

• Between the Classes of 2004 and 2010: 19.95%
• Between the Classes of 2010 and 2016: 17.09%
• Between the Classes of 2016 and 2022: 6.82%

CollegeBoard’s 2021 report acknowledges that the tuition fees and room and board make up most college costs. Nonetheless, books, supplies and transportation also contribute to the overall figure.

We can attribute the rising cost of college to several factors. One is the demand for education. Even for parents who did not receive a college education, most want better than what they had for their children. Another is upgraded school facilities, allowing students a better experience. Having state-of-the-art student centers and campus food that rivals restaurants in quality contributed to higher costs. Along with additional services and amenities come administrations. Their increased numbers and salaries add to college costs.

Source: National Center for Education Statistics
*Class of '22. Data for 2021-2022 is not yet available.

Considering the average cost of college in 2021, it's unsurprising how many people plan to use student loans to afford their education. The amount borrowed varies by individual, depending on the type of institution.

As we mentioned, several factors affect college costs. One is whether the institution is public or private — it changes things significantly. Our graph below shows how their overall costs differ and how these have changed over the years.

Public colleges are considerably more affordable than private ones. Still, their costs have increased by almost 70% in 21 years — from an average of $11,402 in 2000 to $19,374 in 2021.

In comparison, the increase in the overall cost of private colleges during the same period was lower — only 43%. However, it's crucial to note that in 2000, the overall cost was already sky-high at $32,122 per year compared to a private university. In 2021, the average American spent almost $46,000 annually for a college education from a private institution.

Public and private universities differ in cost in part due to their funding. For example, public institutions receive funding from the state government, which typically translates to lower tuition fees, especially if you decide to study in-state. Keep in mind that attending college in a different state can mean higher tuition fees, even for a public institution.

Private institutions rely solely on tuition fees and other endowments. Consequently, they charge higher tuition and fees to keep the institution in business. Private colleges also don't offer in-state tuition, so your residence won’t affect college expenses negatively or positively.

Source: National Center for Education Statistics

Since 42.8% of new high school graduates enter four-year programs, almost half consider four-year programs their default plan for education. In comparison, only 19.9% of new high school graduates enter two-year programs. Whether you go to a public or a private college, the length of the program you attend also plays into what you’re paying.

If you're a parent preparing for your child's future, consider the cost of four-year degrees. If you're a soon-to-be-college student, it may help to determine what kind of student loan to get. MoneyGeek presents data on how much four-year programs cost and how figures have changed in the last two decades.

The overall trend of the average cost of college for a four-year degree has been increasing. This is regardless of the type of institution, public or private. From an average of $19,422 in 2000, college costs have increased by 49.5%, reaching $29,033 in 2021. That's an average increase of 2.36% per year.

The graph shows that the increase in average cost varied between 5-year intervals:

• 2000 to 2005: 18.82%
• 2005 to 2010: 13.85%
• 2010 to 2015: 9.85%
• 2015 to 2020: 2.00%

That means that although costs continued to increase, they didn't go up as rapidly as they did in earlier years. From 2020 to 2021, the average cost of college for a four-year degree decreased by $403 or 1.37%.

Source: National Center for Education Statistics

Now that we've covered the overall costs of college overall, it's time to look at its contributors.

The first thing that often enters an individual’s mind when planning for college is tuition. It's the most significant college expense and why most people in the U.S. are still paying off their student debt.

The graph below shows the average tuition and fees across all institutions. It includes costs for private and public colleges for two-year and four-year programs.

How much you spend on tuition and fees has come a long way since 2000. From an average of $8,082 annually, it climbed 69% to $13,677 by 2021. That's an average yearly increase of 3.3%, although the change may vary between school years. Looking at 5-year intervals, the most significant jump in average costs was from 2010 to 2015 at 14.9%. The other years have smaller increases, the lowest being 4.4% from 2015 to 2020.

Remember that these figures cover tuition and fees. Although people usually lump them together in one category, they are not the same. The former refers to the amount colleges charge for teaching, which may vary depending on your major. Schools calculate your tuition based on the units comprising your academic year. Fees refer to additional costs colleges charge, depending on the institution. Some examples would be communication, health clinic and gym fees. Colleges typically use these to fund student support services, such as transportation within school grounds, athletic facilities and the student government.

As colleges upgrade their facilities, provide more services to their students and invest more in their programs, tuition and fees tend to increase, raising the overall cost of college.

Source: National Center for Education Statistics

While tuition and fees remain the most significant contributor to college costs, housing comes in second. Whether you decide to live on campus or rent an apartment nearby, both come with a price. You'll have to factor in room and board expenses, typically lodging and food, unless you live close enough to your campus to go home daily.

Both costs (room and board) dramatically increased across 21 years. Room costs climbed by almost 63%, from $4,240 in the 2000-2001 school year to almost $7,000 in the 2020-2021 school year. Except for 2020 to 2021, which showed an almost unnoticeable decrease, all other years reflect an increase in cost.

That said, it's interesting to note that the difference in increases between 5-year periods shows a decreasing trend:

• 2000 to 2005: 18.84%
• 2005 to 2010: 15.22%
• 2010 to 2015: 12.52%
• 2015 to 2020: 8.51%

Board costs follow a similar upward pattern, going from $3,939 per year in 2000 to $5,335 in 2021 — approximately a 35% increase. However, the increase has slowed over time when broken up into 5-year intervals.

The cost of room and board is influenced by institution type (public or private) and region. Keep in mind that whether your college is in an urbanized or rural area will also contribute to differing tuition and fees.

Source: National Center for Education Statistics

The last angle we explored is how the average cost of college varies between states. Instead of having one overall amount, we married this perspective with the cost differences between private and public colleges. MoneyGeek's heatmap presents three amounts for each state — the average cost of college for private institutions, in-state and out-of-state tuition. Note that these last two are only for public colleges.

In-state tuition is for students attending a college in the same state they reside, while out-of-state tuition is for those who enroll in public colleges in a different area. The latter may be significantly more expensive than the former. For example, Michigan State University charges 172% more for out-of-state tuition and fees. The same goes for Penn State — tuition and fees are about 100% more expensive for an out-of-state student than an in-state student.

Source: National Center for Education Statistics

Affordable college depends on the institution you want to attend and whether you remain in-state or travel outside the state for your education. MoneyGeek has offered three perspectives for college seekers.

For private colleges, where tuition isn’t affected by where you live, Massachusetts, Vermont, Rhode Island, and the District of Columbia have the highest average cost, each exceeding $60,000 a year. Utah and Idaho are the most affordable, each with an annual average of less than $16,000.

Florida and Wyoming are good options if you're looking for affordable public colleges. Both are in the five most affordable states for in-state and out-of-state tuition. Vermont and Connecticut are among the top 5 most expensive states for both types of public college tuition.

The sections below highlight the most expensive and affordable colleges for private institutions and public in-state and out-of-state tuition.

Source: National Center for Education Statistics

Source: National Center for Education Statistics

Source: National Center for Education Statistics

Source: National Center for Education Statistics

Source: National Center for Education Statistics

Source: National Center for Education Statistics

Knowing the average cost of college can help you prepare for a potentially significant future expense. Here are some commonly asked questions about it and its various contributing factors.

Attending college is a great accomplishment, and those who receive the privilege should be proud of this milestone. College costs, however, can be a considerable undertaking for individuals and families. If this is you, consider the many online resources. Here are some pages to help get you started.

• How to Find and Apply for College Scholarships: Scholarships are an excellent way to secure funding for college without straining your finances. See what types of scholarships are available and how to qualify.
• Funding College With Personal Loans: Our Experts Weigh In: Applying for a scholarship isn’t your only option for funding college. Read about how it differs from a student loan and whether it’s worth considering.
• Understanding Student Loan Forgiveness, Cancellation, Discharge and Repayment Plans: If you took out a student loan to pay for college, you’ll be dealing with debt for a while. Understanding loan forgiveness, cancellation and discharge can be a game changer since they all pertain to the possibility of not paying part or all of your loan.
• How to Find the Right Online College Experience: Getting a degree online has become more popular recently, but it isn’t for everyone. MoneyGeek walks you through some steps to help you determine whether it’s the right fit.
• 7 Money Tips for Parents of First-Year College Students: Starting college can be stressful for students and their parents. If you are a parent, here are some financial tips to help prepare your student for this new season in their life.