Navigating College Inflation

After a few years of showing signs of decreasing inflation with the cost of college, in the 2025-2026 school year, we are right back to the trend of the cost of attendance outpacing inflation. The cost of attendance has outpaced inflation for the last four decades, even doubling or tripling the inflation rate in select years along the way. While we do not have a crystal ball that tells us what college inflation will look like in the future, we have no compelling reason to believe that this trend is likely to reverse any time soon. When planning for college, we must accept that there are factors such as this that are beyond our control. While rapid college inflation is inevitable, here are a few tips to consider before college to navigate these challenges. 

Factor in a high rate of inflation when determining college savings. A common mistake families make is underestimating the impact of inflation on the future cost of college when determining how much money they need to put away for college. Assume a rate higher than that of standard inflation to assume a worse case scenario for the cost of college because this could become a reality. 

Find the most cost-efficient school for your student. Remember that there is a significant difference between the sticker price and net price of schools. Oftentimes, schools that appear to be the most expensive will be a lot more generous with need and merit-based aid. Understand the award aid package of each school and use that information to ultimately make the final decision of which school to attend.  

Pay attention to Graduation Rates! Families very frequently look past the graduation rate of schools. Families, do not make the mistake of simply Googling the graduation rate of a select school and assuming that is the final answer. Oftentimes the graduation rate that schools put front and center is their six-year graduation rate. This is not what we want! We want to see the rate of how many students get out with a four-year degree in four years. Delaying graduation due to factors within a school that are beyond the students’ control will not only add another semester/year of college expenses. This will also be your most expensive year after the inflation adjustment that could be completely avoided by choosing a school that is more likely to get the student out on time. 

Scholarships are your friend. A student can completely offset inflation of college and then some by applying to as many scholarships as possible. A common mistake is that students tend to only apply for the big several thousand-dollar scholarships but end up competing with numerous other students and oftentimes receiving nothing from these. We encourage students to take the extra time and go after the smaller but less competitive scholarships, which can start to add up. Ask your employers, organizations that you or your students are part of, and any other networks you may have. Millions of dollars of scholarships nationwide go unused every year because nobody applies and leaves free money on the table. Sometimes all you have to do is ask. 

While these are some of the most effective ways to get ahead with the increasing cost of college, this is only the beginning. You need a plan that fits your family’s particular needs, goals, and situation to maximize efficiency in paying for college. A+ is always available to discuss your situation and how to plan for the future.