A college quoting its cost of attendance at nearly $100,000 a year was bound to happen eventually, and now we’re seeing it. One letter to a newly admitted engineering student at Vanderbilt University revealed an all-in price of $98,426, including room, board, personal expenses, and a high-end laptop. This eye-popping sum is rare, with only about 35 percent of Vanderbilt students paying the full list price. However, a few other colleges may reach this threshold in the near future, prompting questions about the value of such high costs.
Who Pays What
The average 2023-24 list price for tuition, fees, housing, and food was $56,190 at private, nonprofit four-year schools, according to the College Board. At four-year public colleges, in-state students saw an average sticker price of $24,030. However, many students do not pay these prices, with a significant percentage receiving grant aid to cover their expenses.
Private colleges often provide discounts, with some institutions lowering their tuition prices significantly. Vanderbilt, for example, offers generous financial aid to families with income of $150,000 or less. Despite this, some students at Vanderbilt will still end up paying $100,000 or more, raising questions about the need for such high costs.
Where the Money Goes
Some small liberal arts colleges with large endowments spend more per student than their list prices suggest. Williams College, for instance, invests roughly $50,000 more per student than its list price. This subsidy benefits all students, including those from wealthy families.
Vanderbilt’s spending per undergraduate is $119,000, with the gap between the price and cost of attendance covered by the institution’s endowment and philanthropic donations. Labor costs play a significant role in driving up tuition prices at colleges and universities, with wages for highly educated workers increasing.
Is It Worth It?
Many families question the value of a $100,000 college education, with income outcomes being a key concern. While Vanderbilt’s majors show promising median earnings, similar degrees from other institutions may offer comparable value. The lack of industrywide quantitative data on quality makes the list price a signal of excellence for some applicants.
While the $100,000 list price may not be the most pressing issue, concerns remain about access to education for all students. Professor Brent Joseph Evans emphasizes the importance of ensuring that students can access affordable education and pursue well-paying careers, regardless of the institution they attend.
