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Between 1991 and 2022, the average published tuition and fees increased from the following amounts, after adjusting for inflation, according to the College Board’s Trends in College Pricing and Student Aid in 2021:

•   $2,310 to $3,800 at public two-year schools

•   $4,160 to $10,740 at public four-year schools

•   $19,360 to $38,070 at private nonprofit four-year institutions

This piece will cover the average cost of college tuition and fees in 2021-2022, the increase in college tuition costs, the reasons for the rise of average college tuition, and college tuition options you may want to consider for yourself.

Average Cost of College in 2021/2022

In 2021-2022, the average published price for tuition and fees for full-time undergraduate students were as follows, according to the College Board’s Trends in College Pricing and Student Aid:

•   $10,740 for public four-year in-state institutions, $170 higher than in 2020-2021

•   $27,560 for public four-year out-of-state institutions, $410 higher than in 2020-2021

•   $3,800 for public two-year in-district institutions (including average community college tuition), $50 higher than in 2020-2021

•   $38,070 for private nonprofit four-year institutions, $800 higher than in 2020-2021

Increase in College Tuition Cost Over the Last 10 Years

Generally speaking, tuition has increased in the past decade. According to data from The College Board, the average published tuition price at a four-year nonprofit university during the 2011-2012 school year was $28,500 , while in 2021-2022 that number jumped to $38,070 .

However, tuition increases have remained at historically low rates for both the 2020-2021 and 2021-2022 school years. This can likely be attributed to decreased enrollment and tuition freezes as a result of the Covid-19 pandemic.

Reasons for the Rise of Average College Tuition

What are the reasons for the rise of the average college tuition? There are many reasons, including the following.

Less State Funding

After the 2008 recession, state and local funding for public higher education was cut dramatically. While there have been incremental increases in the amount of funding these institutions receive in the past 10 years, in most states funding for these institutions has not been restored to previous levels.

Now, there is concern that the Covid-19 pandemic may cause additional cuts in the future.

Campus Improvements

As many colleges increase their offerings, they must hire more faculty, make accommodations to house more students in residence halls, and implement capital and technological improvements. These costs may require students to pay more.

Non-instructional expenditures may include recreation centers, computer systems, housing, and food — all of this plays a role in tuition rate increases.

Recommended: How to Pay for College

Marketplace Lacks Transparency or Competition

The higher education marketplace lacks competitiveness and transparency, according to a report by the Manhattan Institute , which contributes to an increase in costs:

•   Families may not know discounts right away: Students often do not know how much it will cost them to attend college because they only see the sticker price until after they’ve applied and been accepted, when the financial aid award shows the discounts and grant aid available. Transparency allows us to comparison-shop and colleges and universities can compete with one another for students’ business.

•   A small number of colleges in an area: When small numbers of colleges exist in an area, costs often increase because no competitiveness occurs, particularly with students who commute to campuses.

•   Perception of the financial value of education: As long as students believe improved earnings opportunities and the demand curve goes up, prospective students’ expectations determine how much they will pay for school.

•   Regulations affect the marketplace: New business models haven’t appeared that offer higher education at a lower cost. Regulations due to federal intervention control financial aid dollars and accreditation requirements limit new entrants.

Personnel Costs Increase

The Higher Education Price Index measures the price change of the amount of money that institutions must spend to keep things going, including salaries for service and clerical individuals, administrators, professors, janitors, and even landscape professionals.

For example, in 2021, faculty salaries increased by 1%, as compared with 2.7% in 2020. Clerical costs increased 2.8%, and fringe benefits rose 4.1%.

Lack of Regulation or Caps on Tuition

No central mechanism controls college costs in the United States at the federal level. An unregulated fee structure means that colleges and universities can charge as much as they want in tuition and fees. Other countries, such as the United Kingdom, cap tuition.

In 2009, Missouri enacted one of the nation’s most stringent caps on tuition by limiting in-state tuition and required fee increases to align with the Consumer Price Index. Institutions would face fines if they exceeded that cap. However, Missouri’s governor lifted the price cap, and colleges can begin increasing without limits in July 2022.

College Financing Options

Numerous college financing options exist for students. Students can tap into various options to pay for costs. Undergraduate students received an average of $14,800 of financial aid 2020-2021, according to the College Board’s Trends in College Pricing and Student Aid, which includes the following:

•   $10,050 in grants

•   $3,780 in federal loans

•   $880 in education tax credits

•   $90 in federal work-study (jobs for college students)

Students may rely on scholarships, grants, work-study, and student loans, in addition to personal savings to pay for their education.

Scholarships

Scholarships refer to money received from colleges or another organization that students. Students don’t have to pay back scholarships. A total of 58% of students receive scholarships. Students receive an average award of $7,923 each, according to the Education Data Initiative .

Recommended: Private Students Loans vs Federal Student Loans 

Student Loans

Students can take advantage of federal or private loans. Federal loans are provided by the U.S. Department of Education. To apply for a federal student loan, students need to fill out the Free Application for Federal Student Aid (FAFSA®) each year.

Private loans are provided by banks, credit unions, and other financial institutions. These are separate from any sort of federal aid, and as a result, lack the protections afforded to federal student loans — like income-driven repayment options or the ability to apply for Public Service Loan Forgiveness. For this reason, private student loans are generally considered by students only after they have reviewed and exhausted all other options for financing.

Students and parents borrowed $95.9 billion in 2020-2021, which decreased from $135.1 billion (in 2020 dollars) in 2010-2011.

Grants

Students can tap into federal or state grants or institutional grants. Grants can also come from employers or private sources. Institutional grant aid for undergraduate students increased by 62% between 2010-2011 and 2020-2021 ($22.0 billion in 2020 dollars).

Work-study

Students can get a work-study award, which is money they must earn when they attend college. They must file the FAFSA in order to qualify for work-study and must work a job on campus to receive the money.

Personal savings

Families report paying $26,373 for college in 2020-2021, a 12% decrease from 2019–2020. It’s not uncommon for students to get help from their parents — nearly half of college costs are covered by parent income and savings, according to Sallie Mae’s annual How America Pays for College 2021 report. Strategies for paying for college for parents include things like setting up an account designed to help them save for college or other educational expenses.

As students and their parents consider their college options, they may consider focusing on programs that offer affordable tuition, or where they received a strong financial aid package. Some schools may even offer free college tuition for some students. Other students may opt to enroll in their school’s tuition payment plan, so they can spread tuition payments over a period of time.

Explore Student Loan Options From SoFi

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The Takeaway

The average college tuition continues to increase. In 1991, the college tuition at a private four-year institution was just $19,360 and in 2022 it was $38,070. There are a number of reasons for increasing tuition rates, including factors like a dramatic decrease in state funding, lack of regulation, and an increase in operating costs at colleges and universities.

Many students rely on financial aid to pay for college. In the case that financial aid, including federal student loans, isn’t enough — private student loans may be an option to consider. If you think a private student loan is a fit, consider SoFi.

Photo credit: iStock/MicroStockHub

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Medical school is a big commitment. Not only will students spend four years of their life working towards a medical degree, but they’ll pay a big chunk of change for it (financing medical school is a major undertaking and can lead to debt). Which is why choosing the right medical school is so important. Keep reading for insight into how to pick the right medical school and how to finance it.

What Is Medical School?

Medical school is a necessary step towards becoming a doctor and generally, it takes four years to complete in order to receive an M.D., N.D., or D.O. degree. After medical school, graduates will need to pursue a medical residency in their specialty before they can become practicing doctors.

Recommended: How to Pay for Medical School

Different Types of Medical Courses

One of the first steps potential medical students can take to find the right medical school for them, is to better understand the different types of medical courses there are. Once they know what type of medical courses they want to take, they can narrow their search to just medical schools that offer those courses.

Traditional Courses

Some medical students may be attracted to more traditional courses that have students finish two years of pre-clinical work before they move on to the three years of clinical work they need to complete to get their degree. Typically, pre-clinical work occurs in a classroom setting. This is where medical students can learn the key principles of medical science. Once they move on to the clinical work portion of their studies, they will need to work in hospitals or clinics with direct supervision, while attending lectures.

This combination educates students on medical practices while making sure they get the hands-on experience they need to use their pre-clinical knowledge in real life situations.

Integrated Courses

Integrated courses are becoming more and more popular at medical schools, as this style, of course, combines pre-clinical and clinical education. In an integrated course, medical students can expect to learn practical clinical skills and work through problem-based learning.

Often in integrated courses, a lot of the students’ work is self-directed and early patient contact is encouraged.

Intercalated Courses

Intercalated courses are unique, as they allow students to take a year out of medical school to earn a BSc or MSc in a related subject. It’s not a guarantee that every medical school will allow students to do this, but in some schools students have the option or are mandated to do intercalated courses.

Recommended: Making Sense of the Rising Cost of Medical School

How to Choose Your Medical School

Every medical student had to ask themself at one point, which medical school is right for me? Here’s a few factors medical students can take into consideration to make answering that very important question easier.

1. Cost

Med school tuition is pricey and it’s not uncommon for students to take on debt for medical school. On top of tuition, students will also need to pay additional costs such as service fees and textbooks.

While medical schools do offer financial aid such as grants and medical school scholarships to their students, it’s important to prepare for the cost of medical school as not everyone receives financial assistance.

Attending an in-state school could help medical students find a lower tuition cost than at out-of-state or private options. For example, at the University of Utah, tuition for medical school if the student lives in-state is about $40,000 a year, whereas out-of-state students can expect to pay closer to $77,000 a year on tuition at the same school.

Each school charges different tuition rates, but generally, staying in-state can save medical students a lot of money.

Recommended: Average Cost of Medical School

2. Programs Offered

Apart from their general MD program, medical schools typically have multiple programs to choose from that lead to different careers paths. Before applying to medical school, students can take into consideration how many different programs are offered, how many students are accepted to each program, how long their ideal program takes to finish, and how that program aligns with their career goals.

3. Admissions Criteria

One of the easiest ways to start a search for the right medical school is by looking for schools where the applicant meets the admissions criteria. Students can do some research on the admissions criteria for each school to make sure their qualifications lineup, as well as what they need to do to apply to each specific school.

4. Location

Location matters. The location of a medical school can affect how much it costs a student to attend, what their housing situation looks like, and what their lifestyles outside of school is like. By choosing a local school, students may be able to save money on tuition or be able to cut costs by living with a family member. Not to mention, some locations simply have a higher cost of living than others. Students can crunch the numbers on what it would cost them to live at each medical school they want to apply to, so they can get a better idea of what attending medical school will cost them as a whole.

5. Career Path Opportunities

There are a wide variety of career opportunities that can arise after medical school and not all of them involve working as a practicing doctor. Medical school graduates can pursue teaching, research, and business opportunities amongst other exciting career paths. Students can check what career path opportunities a school’s curriculum and counseling center support before they apply to get a feel for if that medical school can help them meet their unique career goals.

SoFi’s Private Student Loans For Medical School

Students that need to take out medical school student loans, may find that SoFi’s private student loans can meet their needs. It only takes minutes to apply online and borrowers can apply with a cosigner. Keep in mind that because private student loans don’t have to offer the same benefits or protections as federal student loans (like the opportunity to apply for Public Service Loan Forgiveness), they are generally considered by students only after they have thoroughly reviewed all other financing options.

Borrowers can repay their SoFi student loans in a way that works for them by choosing a monthly student loan payment and rate that fits their budget. Borrowers never have to worry about fees and can enjoy a six-month grace period after graduation so that they have time to get settled in their post-grad life before they need to start making monthly loan payments.

Recommended: Smart Medical School Loan Repayment Strategies

The Takeaway

Choosing medical schools to apply to is a lot of work, but that research is a key step students need to take to find the best medical school for them.

FAQ

Is 30 too old for med school?

No, 30 is not too old to attend medical school. Applicants that apply for medical school will be in their mid-thirties four years later whether or not they pursue a degree. It’s up to them if those four years make a difference in the scheme of things.

What makes a good med school?

A good medical school is one that meets the needs of the student, when it comes to location, finances, and program opportunities.

How do you compare med schools?

Potential medical students can take factors like cost, location, and areas of study into account to compare and contrast their different medical school options.

Photo credit: iStock/Courtney Hale

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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