STATE COLLEGES HURTING

Physician's Money Digest, August31 2003, Volume 10, Issue 16

Fee hike:

The rise in the cost of tuitionand fees at 4-year public collegesis running just under 10% overlast year, fueled by shrinking stateaid and higher expenses. As statesscramble to overcome revenueshortfalls, state spending on highereducation and financial aid for studentsare both taking a hit, puttingthe squeeze on students and theirparents, who are being asked to paymore with less help. Private collegesare in somewhat better shape financially,but with the bear market eatinginto alumni donations andendowment-fund returns, manyprivate schools have also opted toboost tuition charges and otherfees. The average increasein costs at a private 4-year college isjust under 6%.