Imagine that you are the third sibling in your family to enter college in your home state of Minnesota, and each of your family members entered college four years apart. Believe it or not, you can spend twice as much in college as your older brother. While consumer prices generally increase between one and four percent each year, many colleges have increased tuition and fees to double or triple that rate.

Real sources of hidden college costs

While some critics have accused college administrators of overpaying professors and pursuing vanity real estate projects, the true reasons for the increases in college costs reflect changes in the overall economy. For example:

or Technology updates. Although universities helped create the Internet as we know it, university IT professionals have spent hundreds of millions of dollars to upgrade campus networks and implement stronger data security measures.

or Staff compensation. Many colleges and universities offer extensive benefit packages for both faculty and staff. To absorb sudden spikes in the cost of health care, some schools have resorted to increasing tuition.

or State budgets. Like government agencies, state colleges and universities must respond to demands from legislators to freeze or cut budgets. Administrators in hardest hit states like California and Minnesota have increased tuition fees to replace state funding.

or Energy prices. Just as volatile energy costs drove grocery prices up, transportation costs forced campus canteens to buy more expensive ingredients.

or Decrease in stocks. Stock market deficits have even affected college sports programs. Stanford, Ohio State and Florida State announced sports cuts due to declining alumni donations and stagnating ticket sales.

How Rising College Costs Affect Enrollment

Steep increases in college tuition and fees have forced many young Americans to reconsider their plans for higher education. Instead of moving to school, many freshmen have begun to choose colleges closer to home. By living with family members rather than in dormitories, students can avoid many of the added expenses of a college education, such as rent, meal plan charges, and utilities. Government statistics also indicate that more students choose to attend school part-time, paying for tuition with a combination of student loans and income earned from entry-level jobs.

Gaps between public and private university spending

Private school administrators are no longer immune from the effects of a troubled economy. Some of the largest private university endowments suffered capital losses of up to fifty percent in the last two years. In most cases, private universities are now in the same position as public schools forced to increase tuition to cover other funding gaps. Although experts predict that enrollment should continue to rise, students in state schools can expect to enjoy greater value relative to students in many private colleges and universities.

Clash of Fight College Tuition Sticker

Although college costs aren’t likely to drop anytime soon, students and parents can still take a few simple steps to cut their own educational budgets, including:

or Interview with the Career Office. Colleges and universities that have invested in strong alumni networks and job placement programs can help you land the kind of work that can help you pay off student loans sooner.

or Mix and match. Many students now complete undergraduate core courses at community colleges or state universities before completing their degrees at private colleges. This strategy can cut college costs in half while earning the same diploma.

or Rethink work / study. Career-oriented students can complete an associate’s degree online or at a less expensive school to qualify for an entry-level job in their desired industries. Many employers offer tuition reimbursement programs to help students complete their bachelor’s or master’s degrees.

Keeping college costs down may require rethinking the traditional higher education experience. By focusing your search on colleges and universities colleges and universities with a history of smart spending and proven job placement, you can get the best return on your investment in education.