Families sometimes urge their children to consider only public colleges because they believe private education is beyond their means. According to the College Board, the average annual full-fare price at private colleges in 2012-2013 was $43,289. This number included tuition, fees, room and board. The net cost, however, was considerably lower. After taking into account scholarships, grants and federal tax credits, the average net price paid by students was $27,600. More than 80% of private college students received some form of financial assistance, with an average annual aid package of more than $17,000. Obviously, most private college students do not pay the full “sticker” price. For students who qualify for some need-based aid, the net cost of attending a $45,000/ year private college may be nearly the same as the cost of attending a $20,000/ year public university.
Assuming that the cost of education may still be higher at a private college, is the experience going there worth the additional fee? Studies show that college graduates earn about a million dollars more over their working lifetime than those without a diploma. College graduates also report more satisfaction with their careers and lives. No studies, however, have reported differences in earning power for those attending private vs. public colleges. What is most important seems to be how students take advantage of the opportunities offered at whatever college they attend. So what does the additional cost of private education buy?
Private colleges can offer smaller classes and a higher faculty to student ratio. This translates to more opportunities to engage in discussion and to establish relationships with professors. At private institutions, students are much more likely to be taught by professors rather than by graduate assistants. Although you may face competition for popular classes, you are still more likely to get the classes you need for your degree.
Public institutions are more subject to the whim of budget cuts. They often must cut sections of classes, leading to larger classes, and sometimes increasing the time needed to earn a bachelor’s degree. Students at private institutions are much more likely to graduate in four years than those at even the most selective public colleges. Some private colleges are so sure that students can graduate in four years that they offer free tuition if a fifth year of study proves necessary. When considering college cost, be sure to factor in the number of years you’re likely to spend at that institution and the earnings you might lose if it takes you longer to complete your degree.
