Though it may come as a surprise to some families who are new to the college decision process, annual tuition hikes are the norm at most colleges and universities across the country.
For the 2011-2012 school year, average tuition and fees increased 4.5 percent at private, nonprofit colleges and 8.3 percent for in-state students at public universities, according to College Board's Trends in College Pricing 2011 report. Though private, nonprofit colleges are posting smaller tuition increases, on average, than in years past, the annual upticks may still make financial forecasting a challenge for collegebound students and their parents.
At some schools, though, incoming students and their families don't have to factor in the possibility of rising tuition. Through tuition guarantee plans, schools including the University of Kansas, Immaculata University, and Capitol College have been promising incoming freshmen that their tuition bills won't increase in subsequent years. Several more schools have added a tuition guarantee for 2012-2013, including Columbia College and Sewanee—University of the South.
Schools' tuition guarantee programs can vary in name and rules. At the University of Kansas (KU), for example, the program is called a tuition compact, while at George Washington University, it's known as fixed tuition. The University of Colorado—Boulder's program only extends to nonresident students, and Columbia College, unlike some institutions, allows students to qualify for the fixed rate for five years, rather than four. But all programs may help prospective families to better gauge the total costs of an undergraduate education.
[See how KU's tuition compact has helped one family.]
"We think that in these economic times, families are looking for a degree of certainty in their financial planning," says John McCardell, vice chancellor at Sewanee.
"At least knowing what four years at Sewanee will cost as opposed to guessing—we think that's something that families will find not only appealing, but also considerate."
Financial planning for college has come to the forefront this year with the advent of federally mandated net price calculators on every school's website. Families can now use the calculators to estimate the total cost of the first year of college for a full-time student at any U.S. college or university. At schools that offer the tuition guarantee, families will have an added peace of mind that the tuition level, usually the bulk of college costs, will hold steady.
But while tuition guarantees can lend a degree of clarity to financial forecasting, attending a school with such a program won't necessarily be the least expensive option. The programs don't mandate that other college fees, such as room and board, won't rise during a student's time of enrollment.