Tuition hikes at public and private colleges across the nation can be attributed to the struggling economy, according to a study released by the College Board yesterday.
University officials, though, say they doubt the relationship is as strong at private institutions.
The College Board is a nonprofit organization that not only creates the SAT each year, but also provides guidance to high school students applying to college. The board has conducted this study for the past 20 years, according to College Board spokeswoman Jennifer Topiel.
"We try to answer the questions we think the media will ask," Topiel said. "And each year when we present the data, they ask, 'Why is the trend heading in this direction?'"
This year's statistics show that tuition at public institutions has risen 9.6 percent on average over last year to $4,081.
And the average tuition at private institutions rose 5.8 percent to $18,273 per year.
Penn's current tuition is $25,078. Its total student charges, including tuition, are $36,212. This number includes factors such as room and board.
The College Board researchers found that over the past year, colleges did not receive as much outside funding, due in part to diminishing tax revenues and a struggling economy. Many colleges, the study says, have raised tuition to account for that loss.
"Many college-bound students and their families are affected by the struggling economy," College Board President Gaston Caperton said.
But Vice President for Finance and Treasurer Craig Carnaroli said that the study's conclusions are contrary to the prevailing belief.
"Generally, the theory goes that higher education tends to perform well in down economies," he said, explaining that in times of economic hardship, people are looking to acquire skills for a competitive job market.
Carnaroli said the economy has had more of an impact on the tuitions of public institutions.
He added that the poor economy "is a contributing factor -- not primary or sole factor."
According to Carnaroli, other factors affecting tuition include the necessity to maintain competitive, cutting-edge programs, operating and health care costs, as well as higher insurance premiums as a result of last year's terrorist attacks.
The study also found that to help offset increasing costs, a record $90 billion in student aid was offered last year, an increase of 11.5 percent. Fifty-four percent of student aid came from loans, up from 47 percent last year.
Topiel said the College Board aims to convey the affordability -- or lack thereof -- of a college education.
Penn has also worked to help families pay the cost of education.
"We have responded to [increasing costs] to some degree," Carnaroli said. "We recognize hardship and work to make financial aid resources available."
Caperton urged students and parents to compare the cost of a college education to the benefits of having a degree.
"Despite this year's increases, public colleges and universities are still a remarkable value," he said, "and the value of a [college] degree is actually heightened in a weak economy."
Carnaroli admitted that he does not think tuitions will level off in the near future.
"I don't see the operating pressures of the University abating in a material way that tuition would level off in any way," he said. "But I do see the University working hard to contain its cost."
He added that Penn constantly works to "make sure [the] pricing model allows [the University] to retain and attract the best students."
