College sticker prices keep rising. Why many schools are still under financial strain
Even with soaring price tags, a growing number of private colleges are in financial distress.
TL;DR
- Over a dozen U.S. colleges now have a sticker price exceeding $100,000 annually.
- Tuition revenue has declined despite rising price tags due to increased financial aid, higher operating costs, and enrollment decreases.
- Many colleges operate on a 'high-tuition, high-aid' model, where increased tuition is offset by more grant aid.
- The net price of college, after aid, is often not clear to students early in the application process.
- The higher education sector is described as lacking transparency, comparable to healthcare.
- A significant number of students at expensive institutions receive no grant aid, while mid-tier colleges use tuition discounts to attract applicants.
- The average tuition discount for first-time, full-time students at private colleges reached 57% for the 2025-26 academic year.
- The financial sustainability of many private liberal arts colleges is threatened by a lack of 'full-pay' families, leading to a potential 'death spiral'.