Tuition Inflation: How Parents Got Stuck Holding the Bill

College tuition & fees have increased by 172% from 2001 to 2025. Compare that to inflation, called Consumer Price Index or CPI, which rose approximately 47% over the same time period. The last five years have seen particularly steep tuition increases. For instance, if you entered Tulane in the class of 2019/20 your cost of attendance was $72,096, today it is $92,328, a 28% increase of over $20K!

Your tuition bill is now 3X more expensive because Tuition Inflation outpaced CPI inflation by roughly 120–125 percentage points. During this 20-year time period private colleges tuition had the steepest increases of 181%, while public colleges tuition has increased 141%. The bottom line is that your dollar buys far less college than it did 20 years ago:

Category	2001 Prices	2025 Prices	Growth vs. CPI
College Tuition & Fees	$20,000	$54,400	+172% total
General Inflation (CPI)	$20,000	$29,900	+50% total
Tuition Growth vs. CPI		$24,500	Tuition grew 3.4X More

A number of factors have driven the cost of college so high. Higher Education Price Index (HEPI), which tracks costs unique to colleges like salaries, benefits, infrastructure, has consistently exceeded CPI, typically by 1-2 points annually. Couple that with the fact that there has been reduced public funding for state schools, and the result is that more and more of the cost of college is being shifted to students and their families.

The alarming reality is that college costs have increased three times the rate of inflation. What can families do? That is where Essential College Coaches can help. While much of the rising cost of college is beyond our control, we empower families to make smart, strategic application choices that maximize merit-based and scholarship aid.

In our decades of experience, we know that the cost of college can be reduced or nearly free if you pick the RIGHT FIT College. For example, if your student wants to be an electrical engineer, we will identify top programs - possibly out of the Top 50 college rankings - and work with your student to make strategic choices throughout high school resulting in a highly competitive applicant worthy of significant merit scholarships.

Facing the burden of college tuition can be overwhelming for families. Our goal is to guide you through a data-driven process that helps you make the right choice for your student.