Is college actually less expensive than we think?

In 2012 the total student loan debt in the U.S. amounted to $904 billion.

(Image credit: Thinkstock/Photodisc)

last updated 11 January 2015

Everyone knows that college is really expensive. And with tuition rates continuing to climb, coupled with the broader economy continuing to recover at a somewhat plodding pace, some universities are actually having a tough time attracting new students. A recent survey by the National Association of College and University Business Officers found that enrollments at private colleges outside of the top tier are starting to dip — sometimes by a reported 10 to 20 percent. So how are these schools luring students to campus? With record high financial aid packages. The Wall Street Journal reports:

The jump in aid shows that many colleges are losing pricing power as more families focus on cost and value, with about 65% increasing their discount rate in the fall of 2012. Except for the most exclusive schools, private colleges increasingly are vulnerable to the stagnant wages of many families, deepening student debt, the uncertain job market, growing questions about the value of costly four-year degrees and unfavorable demographics. [Wall Street Journal]